Rudd 'happy to talk' with miners about super profits taxMay 4,...

Rudd 'happy to talk' with miners about super profits tax
May 4, 2010 - 7:53PM

Prime Minister Kevin Rudd says he's open to negotiations with mining companies on the details of his government's proposed new tax on their 'super' profits.

He told reporters in Perth that the government thought that the proposed 40 per cent tax was "about right" but he declined to say if that figure might be adjusted down after negotiations with miners.

Mr Rudd flew to the West Australian capital today for talks with mining company officials on the new tax.

"I'm over here to talk to local miners and hear their views and work our way through some of the concerns they have raised," he said.

Mining companies have reacted angrily to the proposed tax, saying it would hurt the industry, reduce investment in the sector and cost jobs.

Mr Rudd said independent modelling by the Australian Treasury indicated there would be an increase in mining activity of 5.5 per cent, not a contraction.

"There will be people out there threatening to suspend projects, close projects," he said.

"I would think this is going to go on for a while yet because we are in the midst of a long negotiation with the mining industry about the implementation details of the super profits tax."

Asked about the big drop in the price of mining shares on the stock market, Mr Rudd said mining stocks had gone through a wide range, both higher and lower, in past years.

"These things will sort through over a period of time."

Mr Rudd said the mining industry had made $80 billion more profit compared with 10 years ago while only $9 billion was going to Australians who wanted a fairer share of the profits.

"I'm standing for a fair share for working families and for small business and for the infrastructure needs of the people of WA and people right across the country when we see super profits like the ones we've seen over the past decade mostly disappear out the back door and overseas."

The Prime Minister said the federal government believed it had the overall design of the super tax right but was open to negotiations with the mining industry on implementation details.

"We want to make it as right as possible for each individual miner."

He said there was a $1 billion set of new tax incentives to help the mining exploration sector which did not make profits up front.

The Prime Minister criticised WA Premier Colin Barnett for his attack on the new tax.

"I think Colin's trying to walk both sides of the street here," Mr Rudd said.

Mr Barnett was constantly asking Canberra for more money for infrastructure needs in his state but was now attacking the new tax which would provide the revenue for that infrastructure through a continuing fund, Mr Rudd said.

"The largest slice of that fund is likely to come to WA because this is where so much of the growth around Australia is happening," he said.

Mr Rudd said 700,000 workers and 230,000 small businesses in WA would benefit from the government's new proposed tax.

"The Premier of WA is already putting up taxes on the miners himself so it's a bit rich to start talking about these sorts of questions as I arrive in WA," Mr Rudd said.

AAP

courtesy WA today.com.au