mining tax, page-68

The Australian Institute of Geoscientists has now formally stated their "strong opposition" to the super tax.

..but what would they know.. more than an American Grad student maybe?.. but according to Krudd they are evil... evil I tell ya... and working for foreign overlord masters.

Australia's geoscientists warn that tax will hurt profession

By: Esmarie Swanepoel
25th May 2010

(miningweekly.com)

The Australian Institute of Geoscientists (AIG) on Tuesday waded into the super profits tax (SPT) debate, expressing shock at the federal government's proposal.

The AIG said in a statement that the SPT would have a "profound negative impact" on the resources industry, the geoscience profession and the Australian community more generally.

"More than 85% of Australia's geoscientists, professional geologists and geophysicists work in the exploration, mining and energy resource industries," vice-president Andrew Waltho noted.

Taxes were a component in project costs which impact directly on the conversion of resources to reserves - the portion of a resource that could be mined economically.

"The government's proposal will reduce the value and potential returns that could be generated by Australia's resources," he warned, adding that, in its current format, the industry, as well as employment and career development therein, would be affected.

Waltho also cautioned that a loss of jobs in mining and exploration contributed directly to a three-to-four-fold loss of jobs in literally every area of business activity throughout Australia and that communities and livelihoods were, thus, at stake.

"Our members are concerned about the manner in which this proposal has been formulated, proposed and justified by the Prime Minister Kevin Rudd and Treasurer Wayne Swan, in particular," he added.

"We do not accept that mining companies have been exploiting resources in a manner that has essentially "short changed" the Australian community," he added.

"Companies pay company tax and their employees pay income tax, as do companies and workers that service or are employed indirectly through the multiplier effects of exploration and mining," Waltho said, pointing out that Australian resource company performance was directly linked to shareholder returns in the form of dividends and increased share values which are passed on to investors.

Waltho noted that alhtough AIG members were not intractably opposed to a review of taxation arrangements for the mining industry, he insisted that proposals must be developed in a considered manner, following a consultative process to ensure that the requirements of both the industry and the Australian community are satisfied.

"We are, however, opposed to the current proposal that clearly fails on this front. The Institute believes that the current proposal is seriously flawed and calls on the Prime Minister and Treasurer to work with companies in a consultative, transparent and constructive manner to address the proposal's shortcomings"