Opposition leader Abbott promises A$418m to resources and energy sector http://www.miningweekly.com/article/opposition-leader-abbot-promises-a418m-to-resources-and-energy-2010-08-16
By: Esmarie Swanepoel 16th August 2010
PERTH (miningweekly.com) As the election race to August 21 heats up, opposition leader Tony Abbott has promised the Australian mining industry that the Coalition government would commit A$418,3-million to ensure the viability and competitiveness of the resources industry.
In a statement released over the weekend, Abbott said that the Coalitions plan for energy and resources included a range of initiatives to deliver confidence and foster growth in the sector.
Central to its policy was removing Labors proposed mining tax, which it introduce a 30% levy on the iron-ore and coal sectors, Abbott stated.
Labors mining tax is a A$10,5-billion hit on one of the most important sectors of the Australian economy. Labors mining tax is a dagger aimed at the heart of our prosperity. It has undermined confidence in Australia as an investment destination and as a secure supplier of resources.
Abbott noted that in addition to the mining tax, Labor would also introduce a carbon tax.
The impact of Labors carbon tax will fall particularly heavily on the mining industry, putting jobs, investment and growth at risk, he added.
The future prosperity of the mining sector and the Australian economy, Abbott said, was dependent on the countrys ability to make new mineral discoveries.
The Coalition will get the exploration industry back on its feet following the devastating loss of confidence for investment in mineral exploration in Australia caused by the governments introduction and gross mishandling of the resources super profits tax (RSPT) and the minerals resources rent tax (MRRT).
Abbott said that to restore investor confidence and help ensure that the resources sector continued to explore for mineral wealth into the future, the Coalition would implement a A$150-million exploration development programme, starting in 2011/12.
This will be delivered through tax credits to Australian resident shareholders for eligible greenfields exploration expenditure incurred in Australia.
A no taxable income test will ensure that the programme was only available to junior minerals explorers.
Final implementation details will be determined in consultation with peak industry representative bodies, including the Association of Mining and Exploration Companies (Amec), Australasian Institute of Mining and Metallurgy (AusIMM), and the Minerals Council of Australia, Abbott added.
The Coalition is committed to working closely with industry to ensure that governments and private sector to develop our energy resources in a constructive, collegiate and cost-effective manner to benefit consumers and ensure the reliability, security and adequacy of supply.
Abbott added that the Coalition would also reestablish the agreement to sell uranium to India for peaceful, energy generation purposes.
It simply does not make sense for the Rudd-Gillard government to deny Australian exporters from accessing the same opportunities as other uranium producers.
Abbott noted that the A$418,3-million earmarked toward these measures would be funded from the redirection of carbon capture and storage flagships funding, with an additional A$20-million provided from the nearly A$30-billion of recurrent savings previously identified by the Coalition.
