mining tax headed for trash heap, says robb

http://www.abc.net.au/news/stories/2010/05/06/2891827.htm?section=justin

Mining tax headed for trash heap, says Robb
By online political correspondent Emma Rodgers

Posted 17 minutes ago

The Coalition will "absolutely" block the new 40 per cent mining tax but believes the Government will bin it before it comes to a vote, says Opposition finance spokesman Andrew Robb.

The Government is staring down an industry campaign against the tax, following its announcement on Sunday which led to a turbulent few days on the markets for mining stocks.

Some companies say they fear having to delay future projects, but the Government has now gained backing for the tax from former Reserve Bank governor Bernie Fraser.

Mr Robb met with mining heavyweights in Canberra yesterday and says they are "gobsmacked" about the tax.

"They thought the process has been amateur hour, ill-conceived [and] introduced without any consultation," he told Radio National.

When asked if the Opposition would vote against the legislation, which is not expected until after the election, Mr Robb replied: "Absolutely. [But] we will never get to vote on this in any event.

"This will be exposed for what it is. I think this is going to blow up in the Prime Minister's face."

Deputy Prime Minister Julia Gillard has told ABC 2 News Breakfast that the Government is not surprised by industry reaction.

"We always expected when we announced the super profits tax that there would be a major debate nationally and we expected resources companies to push back very hard," she said.

Small Business Minister Craig Emerson says the Opposition's decision to block the tax will deny over 2 million small businesses tax relief.

"What on earth has Tony Abbott got against Australia's small businesses?" he said.

Former RBA governor Mr Fraser is now an independent director at two large superannuation industry funds.

He has told AM miners are "crying wolf" over the tax.

"I think that's long overdue to be honest," he said.

"I think it's very much in the national interest. To get 40 per cent of the super profits for the community from the development of their non-renewable resources is all for the good, in my view."

Conservative Canadian MP Brad Trost has told AM the tax is good news for Canada.

"Canadian companies pay the same tax rates as all other companies and corporations do, and by 2014 we're aiming to have a combined average of 25 per cent tax rate," he said.

"If we can get a percentage, an extra percentage, a little bit more because of this blunder by the Australian Government - we're willing to help ourselves."