drilling results....good or bad, page-14

Redgum,

There are lots of subsidies given to lots of industries.

Victoria is a big beneficiary of the $6B the govt is giving to the car industry. Should the motor industry be taxed with a uper profit? We have drought relief given to farmers and special bank accounts for farmers to put their income in so that they do not pay a high tax on their super profits. Should that be stopped?

To pick on one industry because it is deemed a political easy target rather than do the hard yards with total tax reform smacks of cowardice by this govt.

If I was the mining CFO of OZL, I would be looking at what I could do to minimise this tax. First thing would be to run the mine on 5 day week rather than 7 day week and not pay w/end penalty rates and Public Holiday rates. Why? Because w/end's increase my costs and reduces my margin and the tax would make it uneconomic. So the state gets less royaltes, 1 shift is unemployed, wages are cut by 20% to 30% as penalty rates are not there, and the tax that the Govt gets is 30% less. Seems like a slippery road to reduced productivity and negative growth as that reduced income is not spent and the econmy contracts.

Bad idea Swan.

HT1