Alan Eggleston (WA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Industry, Senator Ronaldson. I refer the minister to the mining tax imposed by the previous government that is discouraging resource investment, particularly in my home state of Western Australia. Will the minister outline to the Senate how much the mining tax has cost to administer since its inception?

Honourable Senators:

Honourable senators interjecting—

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

Order! When there is silence I will proceed.

Michael Ronaldson (Victoria, Liberal Party, Minister for Veterans’ Affairs) Share this | Link to this | Hansard source

Can I thank Senator Eggleston most sincerely for that question. I note his deep and abiding interest in the mining industry in Western Australia. Indeed, I note the interest of Senators Johnston, Cash, Smith, Cormann and Back. I thank them most sincerely for their interest. As you would be aware, Mr President, at 1.58 today the dagger was put in the heart of the people of Western Australia when the abolition of the mining tax was voted down.

I thought it might be of interest to the chamber to just indicate that the Minerals Council of Australia estimates that the mining tax set-up cost to the mining industry has been well in excess of $30 million and, conservatively estimated, ongoing compliance costs are approximately $10.5 million per annum. With this set-up cost and the compliance cost added together, a tax has been imposed on the industry of at least $40 million to date.

Given the obvious economic trends in relation to the resources sector, Western Australia needs all the confidence it can get. Curiously, the Labor senators in this place have a different attitude to those members in the other place. Out of interest, last week the Labor member for Perth, Alannah MacTiernan, said of the mining tax:

I think it would be fair to say that the mining tax hasn't done the job that it was designed to do …

So what have we heard from Senator Sterle and, more importantly, Senator Pratt in relation to this matter? We have heard nothing but protection of the mining tax. When Alannah MacTiernan says that it has not done what it was designed to do, she is absolutely right, because it was designed to give $4 billion in year 1 and $6 billion in year 2, and it has given a maximum of $400 million. (Time expired)

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

I remind you to address people in the other place by their correct title.

Alan Eggleston (WA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Would the minister outline to the Senate how much of a contribution mining makes to this country?

Michael Ronaldson (Victoria, Liberal Party, Minister for Veterans’ Affairs) Share this | Link to this | Hansard source

I again thank Senator Eggleston. Mining contributes about 10 per cent of our gross domestic product, directly employs around 270,000 Australians and supports the work and incomes of another 800,000. At the very best, this mining tax has raised about $400 million. As I said before, having said it would raise $4 billion in year 1, and $6 billion in year 2—that is, about $20 per Australian—over $700 per person has been linked to expenditure over the next four years for the non-existent mining tax income.

My message to the people of Western Australia is a very clear message. There is the senator on my left, the senator on my right, candidates such as Linda Reynolds and Slade Brockman and some of the Nationals candidates I have not met, so I say to the people of Western Australia: you look at 1.58 today and you make a decision on who should or should not be re-elected. (Time expired)

Alan Eggleston (WA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I have a second supplementary question. Can the minister explain how scrapping the mining tax would help industry in my home state of Western Australia and elsewhere in this country?

Michael Ronaldson (Victoria, Liberal Party, Minister for Veterans’ Affairs) Share this | Link to this | Hansard source

Senator Eggleston wants the mining tax gone, Western Australian industry wants the mining tax gone, and the people of Western Australia voted at the last election for the mining tax to be gone. The Australian Chamber of Commerce and Industry, the Business Council of Australia and the Minerals Council of Australia pleaded for its removal. What it says is that this sector is already paying about $20 billion a year in company tax to the Commonwealth and royalties to state governments, a total of almost $117 billion since 2006-07.

The fresh Western Australian election provides an opportunity for the people of that great state of Western Australia to send a very clear message that they want this mining tax gone, a very clear message that they want the carbon tax gone. I am confident they will do so in early April when they again have the opportunity. Quite frankly, for this not to be done would be an absolute outrage.

Opposition Senators:

Opposition senators interjecting—

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

Order! On my left!