Huge organs,While I understand your concern, I am looking at...

Huge organs,

While I understand your concern, I am looking at what the tax could do for Aust for the next 100 years. Aust, through a stable fiscal regime, has been able to attract investment in developing resources. We have all benefited from that. Howard used the Resource Boom Mark 1 to get net govt debt to zero and a surplus of $20B. (I must disagree with Swan that it was wasted - it set this Rudd Govt up better than any other nation to withstand the GFC - blind freddy in Aust could have managed through it with the head start given by Howard). If the RSPT is made law, companies will just take their capital and invest it elsewhere. Then we will lose jobs, income, GDP will fall and we will wonder why our kids cannot get work and we feel poorer as our standard of living has dropped. Resource companies pay royalties, they provide jobs, boost regional economies and help to pay for our TV sets and DVD players through the foreign income earned.

The other issue is the discriminatory nature of the tax. If Rudd is saying that the resources are owned by all Aust, then why not place a super profit on farmers, after all they get their income from the soil (is that owned by all Australians?) Why not apply a super tax to the banks? After all they had the Govt Guarantee provided by all Australians.

The reason the govt chose the resource sector is because it thought it was on a vote winner. This has nothing to do about the resources are for all Australians, it has everything to do about winning the next election, but destroying Aust for generations to come.

The world is awash with resources. Australia's competitive advantage has been able to extract them efficiently and sell them. This tax removes that competitive advantage.

Sorry for the ramble, but I would like you to see an alternate point of view.

On OZL, agree that P Hill is growing and a long life mine is possible. Mind you the RPST wipes 30% off 30% of the value of the company as we only have the one mine and it is based in Aust. If the tax comes in, sell OZL and buy PNA.

Dogboy - agree with your scenario.

HT1