mining industry hopes for a change of governme

David Flanagan gets a mention in this report.
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Mining industry hopes for a change of government

By national resources reporter Sue Lannin

Updated Thu 5 Sep 2013, 1:56pm AEST


The mining industry is hopeful of a change of government. (ABC News)

Just days out from Saturday's Federal Election and the mining industry is quietly confident of a change of government.

At this week's annual convention of the Association of Mining and Exploration Companies in Perth, there was an air of quiet anticipation.

The delegates, who belong to small and medium-sized miners and explorers, overwhemingly support the Opposition Leader Tony Abbott's plan, to repeal both the mining and carbon taxes.

But the chief executive of AMEC, Simon Bennison, says the two-day convention is not an election rally for the Coalition.

"We are apolitical as well you know in the context of our advocacy," he said.

AMEC was at the forefront of the mining industry's campaign against the Rudd government's first, broader inprint of the mining tax, the Resource Super Profits Tax (RSPT).

The anti-mining tax campaign played a large part in the Labor Party's decision to replace Kevin Rudd with Julia Gillard as prime minister.

Ms Gillard negotiated a revised mining tax with the big miners, the current Minerals Resource Rent Tax (MRRT), which applies to new and existing coal and iron ore projects in Australia when profits are above $75 million.

In an interview with the ABC, Federal Resources Minister, Gary Gray, ruled out any changes to the tax if Labor is re-elected on Saturday.

Mr Gray says there will be no changes even if there is another minority Labor government.

"There is absolutely no intention at all to broaden the mining tax," he said.

"There is no intention at all to change the current mining tax and the minerals to which it applies which are coal and direct shipped iron ore," he said.

Coalition offerings

The Coalition has offered an election sweetener to the industry in the form of tax breaks for struggling explorers - an incentive championed by AMEC but rejected by the Federal Government.

In a statement, Opposition resources spokesman Ian Macfarlane, said the Exploration Development Incentive scheme would start on July 1st next year if the Coalition was elected.

The scheme would allow investors to deduct the expense of mining exploration against their taxable income.

"Our scheme will target small exploration companies by limiting eligibility to companies with no taxable income and will be capped at $100 million over the forward estimates," he said.
Ian Mulholland, the managing director of explorer Rox Resources, welcomed the plan but says he is disappointed by the limit on tax credits.

"Obviously there is a cap which is a little bit disappointing and I haven't seen all of the details, but it certainly sounds to me like its a good step in the right direction," he said.

The scheme is likely to be reviewed in a couple of years.

Delegates at the conference told the ABC that they wanted to see certainty and they thought the election would provide that.

Mr Mulholland says he wants see less chopping and changing of policy.

"We don't really want policy on the run," he said.

"We don't want populist policies that are going to appeal to the Western Sydney electors.

"We want policies that are going to be good for the whole of Australia.

Mr Mulholland believes the mining tax destroyed confidence in the industry as well as the Federal Government and says he would like to see more supportive policies.

Sarah Eaton, business development manager from drilling firm, West Core Drilling, says the mining industry is looking for certainty from the next government.

"I think there has been alot of uncertainty regarding obviously the mining tax, the carbon tax and the fear that there may new imposts on the mining industry," she said.

Ms Eaton supports Tony Abbott's plan to repeal the carbon and mining taxes.

Paid Parental Leave

Despite the enthusiasm for the Coalition's offerings, there are concerns over Tony Abbott's paid parental leave scheme, which enables women to go on maternity leave on full pay of up to $150,000 for six months.

The scheme will be funded by a 1.5 per cent levy on big business.

The Coalition says the levy will be offset by a planned 1.5 per cent cut in the company tax rate.

Mr Bennison says he is not sold on the levy.

"There is no doubt there is a lot of our members who are caught up in the 3000 companies, that are going to be levied to be part of this scheme and are seriously concerned about the impost on their business," he said.

Sarah Eaton says she supports Mr Abbott's parental leave scheme on a personal level but is not sure how it will be implemented.

"I think there is alot of uncertainty about how it will work both from the people involved in the scheme, the ones who are going to be contributing to the levy and also just management of the scheme," Ms Eaton said.

Atlas Iron chairman David Flanagan, who presented the keynote speech of the conference, attacked middle class welfare and called for a change of culture and a reallocation of government spending from "wants" according to "needs".

"Our political system is saturated with the culture of entitlement," he said.

"And its no wonder when you hear people boasting about their baby bonus hanging on their loungeroom wall in the form of a plasma television."

Speaking on the sidelines of the conference, Mr Flanagan refused to comment on Mr Abbott's paid parental leave plan.

"I think Tony Abbott would make a fine prime minister," he said.

"I'm not going to specifically comment on specific policies because I am an Australian, I'm a mining executive, and I look forward to seeing him win, hopefully."

Delegates interviewed by the ABC at the convention, said they were not worried that Mr Abbott and the Coalition had not yet released their full policy costings.

Mr Flanagan said he was unconcerned.

"Yeah, well I trust him [Tony Abbott]," he said.

And trust is the key issue at this election.