Grylls mining tax would have detrimental effect
With regard to letters published in your February 22 edition, a couple of points must be made to set the record straight.
Firstly, the mining tax as proposed by Brendon Grylls and his WA Nationals has been independently assessed by economic experts who have also done work for WA’s State Government.
This analysis found the scheme would have a detrimental impact on the iron ore industry in WA and cost 3400 jobs in WA — almost 3000 of those in the Pilbara.
The tax will also make WA more uncompetitive against its international rivals such as Brazil and lead to WA’s already poor share of GST return getting even worse — a point conceded yet ignored by Brendon Grylls. Arguments that this won’t be affected are just plain incorrect.
Secondly, the WA Nationals have created a perception that the iron ore miners being targeted only pay 25 cents per tonne for iron ore.
The reality is very different, with BHP and Rio Tinto paying, on average, $19 per tonne in royalties, taxes fees and charges.
Official Australian Tax Office figures show that last financial year, between them both, BHP and Rio Tinto paid almost $4.5 billion in tax, placing them in the top six tax payers in Australia and above companies like Telstra and Woolworths.
Thirdly, attempts by the WA Nationals to justify the thousands of job losses which will result from its tax is an exercise in irresponsibility.
Brendon Grylls as WA Nationals leader has openly admitted that there is no modelling or economic rigour behind his statements and policies such as tax changes, yet at the same time he refuses to submit his policies to WA Treasury for assessment.
CME is running this campaign because the threat posed by this iron ore tax scheme to the industry and, therefore its workers and the State, is extreme.
Brendon Grylls and the WA Nationals have openly admitted its mining tax plan is about winning votes and politics, that is, what is best for them, not what is best for WA’s resource sector and the thousands of families and businesses which rely on it.