drilling results....good or bad, page-29

Dogboy,

If I was the CFO, I would have a hard look at the cost structure of the operations to determine whether 7 day operations was still profitable under this proposed tax regime. If not, I would reduce operations from 4 shifts to 3 (7 day to 5 day). This would save penalty and P Holiday wage rates.

Think, though, is all CFO's thought this would be a good idea in response to this legislation, if it ever got up. What would this do?

- put 1/4 of all mine workers out of a job
- reduces the pay of the balance of mine workers by about 22%
- reduce royalties to state govt by 25% to 30%
- reduce the tax take by the govt by 25% to 30%
- reduce GDP by quite a bit as money flow through the economy slows down.

Newton's 3rd law says that for every action, there is an equal and opposite reaction. I wonder if the govt and the Canberra bureaucrats have really thought this through, or have they lived in Canberra so long that they have become divorced from reality?

HT1

HT1