Sydney --24Jun2010/347 am EDT/747 GMT
Australia has a new prime minister, Julia Gillard, who has promised to
open the door to the nation's resources sector to negotiate, rather than
consult, on the federal government's controversial proposed Resource Super
Profits Tax.
Gillard told a press conference Thursday after assuming the leadership of
the governing Labor Party from Kevin Rudd that Australians were entitled to a
fairer share of the nation's mineral wealth and that the mining industry could
pay more tax.
"But to reach a consensus, we need do more than consult," Gillard said.
"We need to negotiate. And we must end this uncertainty which is not good for
this nation."
In return for the government's open door on negotiation, Gillard asked
the local mining industry to throw open its mind and "walk through that door."
She said government-funded advertising in support of the RSPT would cease and
she asked for the mining sector to end its media campaign against the tax as a
show of good faith and mutual respect.
In response, the Minerals Council of Australia said it would suspend its
own advertising as a gesture of goodwill in "expectation of meaningful and
constructive consultations" on proposed resources taxation reform. The key
issues for discussion included retrospectivity, the tax rate, sovereign risk
and international competitiveness, MCA Chief Executive Mitchell Hooke said in
a statement.
The Australian mining and petroleum sectors have reacted with anger to
the proposed across-the-board 40% RSPT, which was unveiled on May 2 without
any prior consultation with industry, and would replace a system largely based
on state production royalties.
The emerging Australian coal seam gas industry has been lobbying against
the RSPT and seeking to be categorized instead under the country's existing
petroleum resource rent tax, which applies to the offshore oil and gas
industry. Australia's RSPT is a profits tax levied at 40% after investment has
been recouped, and paid in addition to the current 30% company tax.
Coal seam gas production in Australia was previously subject to state
royalties of around 10% at the wellhead. The proponents of a raft of coal seam
gas-based LNG projects in the eastern state of Queensland have said the
proposed RSPT created uncertainty and threatened their ability to make planned
decisions on tens of billions of dollars of investment in coming months.
Government negotiations on the proposed tax are to be led by federal
Treasurer and new Deputy Prime Minister Wayne Swan and incumbent Resources and
Energy Minister Martin Ferguson.
The furore around the RSPT has been a major factor in the destabilization
of the prime ministership of Rudd, who stood aside as leader of the Labor
Party early Thursday after it became clear Gillard had the support to oust
him. Gillard, who was deputy prime minister in Rudd's government, said she
would call a general election in the coming months, "so that the Australian
people can exercise their birthright to choose their prime minister."
Gillard also said she was a believer in climate change and in the human
contribution to climate change.
"It is as disappointing to me as it is to millions of Australians that we
do not have a price on carbon. And in the future we will need one," Gillard
said. "But first we will need to establish a community consensus for action.
"If elected as prime minister I will re-prosecute the case for a carbon price
at home and abroad. I will do that as global economic conditions improve and
as our economy continues to strengthen."
Rudd's standing was seriously damaged over recent months after his
government was forced to shelve its vaunted carbon trading scheme after
failing to secure support from the Liberal Party-led federal opposition
coalition.
Gillard, who was deputy prime minister in Rudd's government, said she
would call a general election in the coming months, "so that the Australian
people can exercise their birthright to choose their prime minister."
Australia has a new prime minister, Julia Gillard, who has promised to
open the door to the nation's resources sector to negotiate, rather than
consult, on the federal government's controversial proposed Resource Super
Profits Tax.
Gillard told a press conference Thursday after assuming the leadership of
the governing Labor Party from Kevin Rudd that Australians were entitled to a
fairer share of the nation's mineral wealth and that the mining industry could
pay more tax.
"But to reach a consensus, we need do more than consult," Gillard said.
"We need to negotiate. And we must end this uncertainty which is not good for
this nation."
In return for the government's open door on negotiation, Gillard asked
the local mining industry to throw open its mind and "walk through that door."
She said government-funded advertising in support of the RSPT would cease and
she asked for the mining sector to end its media campaign against the tax as a
show of good faith and mutual respect.
In response, the Minerals Council of Australia said it would suspend its
own advertising as a gesture of goodwill in "expectation of meaningful and
constructive consultations" on proposed resources taxation reform. The key
issues for discussion included retrospectivity, the tax rate, sovereign risk
and international competitiveness, MCA Chief Executive Mitchell Hooke said in
a statement.
The Australian mining and petroleum sectors have reacted with anger to
the proposed across-the-board 40% RSPT, which was unveiled on May 2 without
any prior consultation with industry, and would replace a system largely based
on state production royalties.
The emerging Australian coal seam gas industry has been lobbying against
the RSPT and seeking to be categorized instead under the country's existing
petroleum resource rent tax, which applies to the offshore oil and gas
industry. Australia's RSPT is a profits tax levied at 40% after investment has
been recouped, and paid in addition to the current 30% company tax.
Coal seam gas production in Australia was previously subject to state
royalties of around 10% at the wellhead. The proponents of a raft of coal seam
gas-based LNG projects in the eastern state of Queensland have said the
proposed RSPT created uncertainty and threatened their ability to make planned
decisions on tens of billions of dollars of investment in coming months.
Government negotiations on the proposed tax are to be led by federal
Treasurer and new Deputy Prime Minister Wayne Swan and incumbent Resources and
Energy Minister Martin Ferguson.
The furore around the RSPT has been a major factor in the destabilization
of the prime ministership of Rudd, who stood aside as leader of the Labor
Party early Thursday after it became clear Gillard had the support to oust
him. Gillard, who was deputy prime minister in Rudd's government, said she
would call a general election in the coming months, "so that the Australian
people can exercise their birthright to choose their prime minister."
Gillard also said she was a believer in climate change and in the human
contribution to climate change.
"It is as disappointing to me as it is to millions of Australians that we
do not have a price on carbon. And in the future we will need one," Gillard
said. "But first we will need to establish a community consensus for action.
"If elected as prime minister I will re-prosecute the case for a carbon price
at home and abroad. I will do that as global economic conditions improve and
as our economy continues to strengthen."
Rudd's standing was seriously damaged over recent months after his
government was forced to shelve its vaunted carbon trading scheme after
failing to secure support from the Liberal Party-led federal opposition
coalition.
Gillard, who was deputy prime minister in Rudd's government, said she
would call a general election in the coming months, "so that the Australian
people can exercise their birthright to choose their prime minister."
