I have to apologise – but I have been really busy as of late and have not had time to post anything…except this…
I read today that Iron Ore miner Fortescue Metals has again called on the Federal Government to clarify details of the proposed new mining tax (MRRT).
Well, Fortescue chief executive Andrew Forrest can talk to PM Gillard all he wants, but there is one fundamental flaw that nobody, not even the Liberal Party is raising.
Labour has a get out of jail free card on this one.
The scenario is very simple. Gillard is re-ellocated, pushes the MRRT through to Government for approval, and the greens block it demanding a minimum of 40% of profits.
Now we have a dilemma – if the Labour party says “No, we have a deal with BHP Billiton Ltd, Rio Tinto Ltd and Xstrata and if you (the Greens) don’t agree with it then it won’t go into place at all“ they have indirectly delivered a victory to the Liberal party who wants the MRRT abolished altogether.
Of course, the alternative is to say that the MRRT is a tax we have to have, the Henry Report dictates it (although it really doesn’t – see my previous thoughts about the Henry Tax), and although we did a deal with the miners, it’s the Greens that have changed the deal – not Labour…we (Labour) have not broken an election promise. Hmmmmm….
There goes Australia’s reputation as an investment destination and the impact it will have on job creation in the mining industry will be significant.
Someone needs to address this “elephant in the room” before Saturday – because by then it will be all too late !!!
