Much criticism has been directed at Kevin Rudd's new mining tax policy, it's only fair he has a chance to defend all the vicious myths that are now circulating. A recent interview with a leading economist.
Economist:
Prime Minister, it is a common assumption that the MSPT will mean many mining projects will have to be suspended or abandoned altogether?
Kevin Rudd's Response:
Look deeply into my eyes, > This is intentional, this will put the ownership of these resources back into the hands of Australian families. Mum and Dad and their 5 year old child will be free to pack the family stationwagon and holiday in the Pilbara for instance and help themselves as much iron ore that they can carry and sell it on the spot market for their super nest egg. The answer should be as plain as day.
Economist:
As a result of the tax, many jobs will be lost and the ones that were going to be created will fall by the wayside.
Kevin Rudd's Response:
No, that's incorrect. Due to the increased tourist traffic, thousands of hospitality jobs will be created in the Pilbara. Won't Mum and Dad have to stop for lunch on their way to Tom Price? Yes? Bigger station wagons will be needed to carry the ore which will give rise to hundreds of new dealerships and many, many more car salesman jobs will be created. These dealerships will drive GDP going ahead. > For the second time now, the answer is so obvious that I'm surprised you even asked the question and I'm not far from turning my hand around at you for asking.
Economist:
What about Xstrata's decision to suspend mining operations for two of their projects?
Kevin Rudd's Response:
This is where I have all Australian mining companies at the moment and this is how I like it. >
But that decision has nothing to do with this mining tax, it's common knowledge that Xstrata is Swiss based and their forward planning is full of holes.
Economist:
But Prime Minister, this is a prime example of capital risk. There is a risk that due to this tax, capital will flow out of Australia.
Kevin Rudd's Response:
What I say to you is do we really need Capital? I hear all the economists talking about Capitals, Capitals, Capitals and as far as I'm concerned they can talk to the hand. > What's wrong with lower case I say! I'm more than sure the people of Australia will get by using lower case. I mean please, again, think about how ridiculous your question is before you ask it and how obvious the answer is before you come to me with these inane questions. While I'm at it please do some research on Capitals so you can have an intelligent discourse with me on the subject, I'm not called Brains for no good reason you know. >
Economist:
What about the assumption that this mining tax will lead to a lot of Chinese takeovers of no longer viable companies and projects in the years to come?
Kevin Rudd's Response:
I mock at these suggestions but all is not lost. If you believe all the economists I will be a VERY LONELY FIGURE by then (notice how I used Capitals Ha Ha) but as I speak fluent Mandarin this will give me someone to talk to.
Economist: On that note I think we'll end the interview there Prime Minister.
Kevin Rudd's Response:
I'm so glad we had this interview, this will finally dispel all the uncertainty surrounding the lies and myths the mining sector have put forward.>
That in itself deserves a Hand shake? >
Economist:
On behalf of all Australians, I'd rather not.
As ridiculous as this post is I think just as much thought has gone into it as Kevin Rudd did thinking up this policy. He has made assumptions without any consultation with the mining sector.
Worse still, it has now turned political as the majority of opinion from leading economists now indicates the detrimental effect this will have on the Australian economy in the years to come; political because Mr Rudd has dug himself into a hole where to change it will mean the demise of his political credibility in the wake of the insulation scheme and his backdown on the ETS.
To a great extent it's not about the good of Australia anymore, it's about the good of Mr Rudd.
Mr Rudd may have thought that this policy would have the people of Australia behind him and in their economic ignorance this may be the case. But if you hear anyone argue for it's credibility, tell them to have a look at the balance of their Superannuation balance in the years to come.
All Super funds have an allocation of Australian shares in their portfolios and the value of these have and will suffer further in due course, ironically Superannuation was the thing Mr Rudd was trying to bolster with this policy and I'm sure the Australian people will turn once they realise their hip pocket has been affected.
It has become quite apparent that Mr Rudd and Swan are not up to the task of driving Australia's economy forward...even though they think they are. Would you tolerate him piloting a plane you were about to fly on just because he liked planes and thought he was up to the task?
Please vote Mr Rudd OUT in the next election, for the good of all Australians.
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