you have been "rudded", page-9

SF,

I think holders of ESG, and the entire resource sector, will not have long to wait for resolution of some sort on the issue.

Labor is going to move quickly to an election, whilst Gillard enjoys the honeymoon period associated with being a new leader.

Labor has now signalled that there will have to be 'spending cuts' due to the revision of the RSPT. So the reduction in the company tax rate and extra super that would have been paid for by the RSPT are also likely to go/or be watered down.

Labor will want to fight the next election on their traditional strengths of education and health spending. Labor will want to get a consensus on the revised RSPT, baceause they do not want the RSPT to be an election issue. The final product will be very watered down.


So, my guess is a very quick resolution with the miners, a very watered down RSPT that the industry can live with, and a complete removal or watering down of the company tax cuts and superannunation spending.

And all this will happen quickly, to get it off the agenda before the election, which is itself going to happen in the near term.

And then subequent investment decisions by all in the CSG will follow quickly from there.

Not long to wait for the action to kick off, IMO.

Y