axe the tax... protest today

Protesters pressure PM to 'axe the tax'
ref http://au.biz.yahoo.com/100609/31/2diqb.html#Scene_1

Wednesday June 9, 2010, 4:09 pm




A 2,000-strong crowd has gathered on Perth's foreshore to protest against the Federal Government's mining super profits tax.

United under the slogan "axe the tax", the protesters rallied outside a hotel where Prime Minister Kevin Rudd addressed a Press Club luncheon.

But Mr Rudd is showing no signs of backing away from his tax reform ahead of his showdown with West Australian mining bosses.

Senior ministers have followed Mr Rudd to the west and will hear first hand what voters think about the tax at a community cabinet meeting this evening.

Mr Rudd will meet Fortescue Metals Group's Andrew Forrest, who has been one of the loudest critics of the tax, ahead of the meeting.

Mr Forrest joined the protesters who included Australia's richest woman, Gina Rhinehart.

She says the time for talking is over.

"Perhaps if there had been negotiations earlier it would have been different, but now the damage to Australia has gone on for too long," she said.

A number of Liberal MPs also attended the protest, including Julie Bishop and Wilson Tuckey, along with WA Liberal Party president Barry Court.

Protest organiser David Flanagan, who runs a junior Pilbara iron ore company, urged the Prime Minister to engage with the mining industry.

He says the Government's proposal to impose a 40 per cent tax on profits above a 6 per cent threshold will hurt.

"This is not big mining that is down there today. AMEC [Association of Mining and Exploration Companies] represents 170 small mining companies that employ between five and 25 people each," he said.

"We employ a lot of working families and we're not being listened to. So this is our best chance of getting our voice heard.

"We want to talk with the Government. We want to engage with the Government, but what's being proposed is going to take money out of the economy.

"If there's less money in the economy, there's less jobs, there's less projects, there's less taxation ultimately collected and that hurts all Australians."

Difficult talks
Mr Rudd is under pressure from mining companies to compromise on the tax proposal, with a strong push for him to change the definition of a "super profit".

He told the luncheon the Federal Government has got the tax rate correct and will help mining companies with generous transition arrangements.

He also defended the industry consultation process underway.

"I am here to listen. I sat down with folk yesterday. I'm sure I'll sit down with Twiggy [Andrew Forrest] before I leave town and probably others," he said.

"This is a democracy and if there are objections and concerns to aspects of the Government's tax reform proposal, it's good that people have the opportunity to put that sharply and to register their views."

Mr Rudd has promised an extra $2 billion will flow to WA through the Infrastructure Australia Fund.

Earlier he told Fairfax radio that talks over the tax will continue, but will be difficult.

"We are engaged in a continuing consultation with them and that will continue into the days and weeks ahead," he said.

"We think these consultations have been productive - we're learning various things from various companies about their individual circumstances, but this will be a very difficult negotiation."

But Federal Opposition Leader Tony Abbott says it is hard to see what compromises the Government can make.

Mr Abbott says the tax needs to be dropped before it causes more damage.

"The problem with this tax is that he can't change it without destroying his budget strategy and he can't keep it without destroying the resources sector's expansion in this country," he said.

"He's in a very difficult position."

Mr Rudd, meanwhile, says a meeting he had with BHP Billiton head Marius Kloppers in Sydney yesterday was cordial and frank.

"I'm always keen to listen to what the mining industry has to say," Mr Rudd said.

"We had a cordial and frank discussion and I'm sure we'll continue to do that in the future."



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