Scott Ryan (Victoria, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Sherry. I ask whether the government is aware of the comments of the Canadian Minister for International Trade in the Financial Times overnight where he stated that, ‘We think lowering taxes attracts investment; we think higher taxes obviously discourage investment’, and the comments of the chief executive of the Mining Association of Canada when he said the Australian tax ‘probably makes Kevin Rudd the mining man of the year in Canada, because he’ll bring a lot of investment our way.’ Why is this government in denial that its great, big new tax on mining will be a bonanza for Australia’s competitors while costing Australian jobs?

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

No, I am not.

Scott Ryan (Victoria, Liberal Party) Share this | Link to this | Hansard source

I thank the minister for the short answer. My supplementary question is: given this tax was announced without any prior consultation with industry, does the government stand by its commitment of August 2008 to act on the recommendations of the report of the Tax Design Review Panel in relation to this new tax?

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

On the issue of consultation, it is simply not correct to claim that there was no consultation. I am pleased that you have raised the issue, because one of the common myths being advanced against the super profits taxation in the mining industry is that there was no consultation. If you look at the work program, the speeches and the papers that were presented publicly by the independent tax review—otherwise known as the Henry tax review—you will see that there was extensive referencing.

Opposition Senators:

Opposition senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

I remind senators that I need to hear the answer to the questions and I need silence to do so. Senator Sherry, continue.

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

There was extensive referencing to the issue of the taxation, the base of taxation and the way in which taxation should apply to the mining sector. Indeed, I understand the Mining Council of Australia made a submission in respect of the conceptual and the principle approach of taxing profits. (Time expired)

Scott Ryan (Victoria, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. I ask whether the minister is aware that recommendation 1 of that paper says:

The Government should generally consult on tax changes at the initial policy design stage, prior to any Government announcement. For major policy changes, consultation should include public consultation on policy design (eg, via the release of a discussion paper).

Why does the government not simply admit that it has got both the process and the substance of this tax grab wrong and scrap this tax?

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

As I was saying earlier, I do not accept the argument from the opposition, where they are locked arm in arm with the mining industry, and advancing the myth—and that is what it is: a myth—that there was no consultation. There was consultation. I would draw your attention to a speech I gave on Monday evening at a tax forum in Sydney, where I listed four pages of precise consultation with sections of the mining industry in the independent tax review. There was comprehensive consultation on the issue of the structure and the design of the taxation of the mining sector in this country.

Opposition Senators:

Opposition senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

If you want to debate the issue, I reminded senators earlier—and I will do it again—that you can debate the issue at the end of question time.

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

The government stands behind its proposed tax. The increasing prices that are flowing as a consequence of the mining boom and demand in Asia come from a resource that is owned by the Australian people, and they should get their fair share— (Time expired)