❓ Question regarding the disastrous impacts of the federal Minerals Resource Rent Tax (mining tax) on Western Australia, particularly the Kalgoorlie area. The Premier's answer is highly critical of the tax and its impact on WA's economy.
AnsweredQoN 90Legislative Assembly
QuestionView source ↗
MINERALS
RESOURCE RENT TAX — FEDERAL LEGISLAT ION
90. Mr J.J.M. BOWLER to the Premier:
I notice that the mining tax passed through federal
Parliament yesterday. Can the Premier please advise the house of the disastrous
impacts this tax will have on Western Australia, particularly my area?
RESOURCE RENT TAX — FEDERAL LEGISLAT ION
90. Mr J.J.M. BOWLER to the Premier:
I notice that the mining tax passed through federal
Parliament yesterday. Can the Premier please advise the house of the disastrous
impacts this tax will have on Western Australia, particularly my area?
AnswerView source ↗
I thank the member for Kalgoorlie for the question. His
electorate, of course, is a mining electorate, and people in mining areas of
Western Australia, and, indeed, in Perth —
Mr A.P. O'Gorman interjected.
The SPEAKER :
Member for Joondalup! I formally call you to order for the first time today.
Mr C.J. BARNETT :
Like the member for Joondalup, the Prime Minister is looking for a pot of gold
at the end of the rainbow, and she sees it in Western Australia.
This tax is probably the worst example of public policy in
Australian history. It is a discriminatory tax levied on selected minerals—petroleum
previously, and now on iron ore and now on coal. It is a tax that the Greens
want to extend to uranium, to rare earths and to gold. Where do all these
minerals come from? They come predominantly from Western Australia and to a
lesser extent Queensland. Of the $4 billion —
Mr E.S. Ripper interjected.
The SPEAKER :
Member for Belmont, I formally call you to order for the first time today!
Mr C.J. BARNETT :
On federal Treasury estimates, of the $4 billion that will be raised each year
from this tax, 65 per cent or $2.6 billion will come out of the Western
Australian economy, which is more than $25 billion in 10 years. Western
Australians, at least on this side of the house and in the wider community, are
angry about this because this tax comes on top of the disastrous reduction by
the Gillard government of our goods and services tax share from 72c in the
dollar down to 55c. Right now —
Several members interjected.
The SPEAKER :
Member for Joondalup! I heard your voice above everyone else's.
Mr A.P. O'Gorman interjected.
The SPEAKER : Oh,
member for Joondalup! I formally call you for the second time and the third
time today. If you would like to stay here so your voice might be heard again at
some other point, I would prefer that that was the case.
Mr
C.J. BARNETT : The resources, as we at least I think know, belong to the
states. The commonwealth government is effectively taxing those resources and
redistributing some of the prosperity of Western Australia across to the other
states—other states that do not do the hard yards to get their
economies moving; other states that just depend on the largesse of Western
Australia.
Mr
W.J. Johnston : That's not true.
Mr
C.J. BARNETT : Look at Tasmania; they reject investment after investment and
rely on wealth out of this state. That is why people in this state are angry. I
would be interested to know the Leader of the Opposition's position.
Does he support the mining tax of Julia Gillard or does he not? It is a pretty
simple question.
Several members interjected.
Mr C.J. BARNETT :
It is a pretty simple question. He cannot answer it because he will not answer
it, because he is not allowed to answer it! The Gillard government will not
allow him to answer it.
Several members interjected.
The SPEAKER : The
Premier to continue.
Mr C.J. BARNETT :
When this issue came up late last year in debate in the Parliament, we could
not get an answer out of the then, if you like, member for Rockingham.
Mr M. McGowan : Is
this the best you can do?
Mr C.J. BARNETT : I
can do a lot better.
When the issue was discussed, the best the member for
Rockingham could say was, ''Well, I'm a bit unsure about it, but
look, it is a good thing, because we are going to get an infrastructure fund.''
Tune in; what did federal finance minister Penny Wong say in the past few days?
She said, ''If Western Australia dares to raise royalties over our
minerals, then we will reduce infrastructure and we will reduce GST funding to
the state.'' Here we have a Labor government in Canberra, supported by
Labor members here, which wants to penalise Western Australia for its success.
The Leader of the Opposition cannot hide. He needs to give it some thought and
tell us: does he support Julia Gillard's mining tax, or does he support
the mining industry and the state of Western Australia?
electorate, of course, is a mining electorate, and people in mining areas of
Western Australia, and, indeed, in Perth —
Mr A.P. O'Gorman interjected.
The SPEAKER :
Member for Joondalup! I formally call you to order for the first time today.
Mr C.J. BARNETT :
Like the member for Joondalup, the Prime Minister is looking for a pot of gold
at the end of the rainbow, and she sees it in Western Australia.
This tax is probably the worst example of public policy in
Australian history. It is a discriminatory tax levied on selected minerals—petroleum
previously, and now on iron ore and now on coal. It is a tax that the Greens
want to extend to uranium, to rare earths and to gold. Where do all these
minerals come from? They come predominantly from Western Australia and to a
lesser extent Queensland. Of the $4 billion —
Mr E.S. Ripper interjected.
The SPEAKER :
Member for Belmont, I formally call you to order for the first time today!
Mr C.J. BARNETT :
On federal Treasury estimates, of the $4 billion that will be raised each year
from this tax, 65 per cent or $2.6 billion will come out of the Western
Australian economy, which is more than $25 billion in 10 years. Western
Australians, at least on this side of the house and in the wider community, are
angry about this because this tax comes on top of the disastrous reduction by
the Gillard government of our goods and services tax share from 72c in the
dollar down to 55c. Right now —
Several members interjected.
The SPEAKER :
Member for Joondalup! I heard your voice above everyone else's.
Mr A.P. O'Gorman interjected.
The SPEAKER : Oh,
member for Joondalup! I formally call you for the second time and the third
time today. If you would like to stay here so your voice might be heard again at
some other point, I would prefer that that was the case.
Mr
C.J. BARNETT : The resources, as we at least I think know, belong to the
states. The commonwealth government is effectively taxing those resources and
redistributing some of the prosperity of Western Australia across to the other
states—other states that do not do the hard yards to get their
economies moving; other states that just depend on the largesse of Western
Australia.
Mr
W.J. Johnston : That's not true.
Mr
C.J. BARNETT : Look at Tasmania; they reject investment after investment and
rely on wealth out of this state. That is why people in this state are angry. I
would be interested to know the Leader of the Opposition's position.
Does he support the mining tax of Julia Gillard or does he not? It is a pretty
simple question.
Several members interjected.
Mr C.J. BARNETT :
It is a pretty simple question. He cannot answer it because he will not answer
it, because he is not allowed to answer it! The Gillard government will not
allow him to answer it.
Several members interjected.
The SPEAKER : The
Premier to continue.
Mr C.J. BARNETT :
When this issue came up late last year in debate in the Parliament, we could
not get an answer out of the then, if you like, member for Rockingham.
Mr M. McGowan : Is
this the best you can do?
Mr C.J. BARNETT : I
can do a lot better.
When the issue was discussed, the best the member for
Rockingham could say was, ''Well, I'm a bit unsure about it, but
look, it is a good thing, because we are going to get an infrastructure fund.''
Tune in; what did federal finance minister Penny Wong say in the past few days?
She said, ''If Western Australia dares to raise royalties over our
minerals, then we will reduce infrastructure and we will reduce GST funding to
the state.'' Here we have a Labor government in Canberra, supported by
Labor members here, which wants to penalise Western Australia for its success.
The Leader of the Opposition cannot hide. He needs to give it some thought and
tell us: does he support Julia Gillard's mining tax, or does he support
the mining industry and the state of Western Australia?
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