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Respected economist joins the chorus warning of the dire impact of Labor’s mining tax



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Senator Stephen Parry Chief Opposition Whip in the Senate Manager of Opposition Business in the Senate Liberal, Tasmania

MEDIA RELEASE

Thursday June 3, 2010

Respected economist joins the chorus warning of the dire impact of Labor’s mining tax

EXPERT criticism of Labor’s new mining tax is mounting, with one of Australia’s most respected economists describing Treasury modelling as faulty, Senator Stephen Parry, speaking on behalf of the Tasmanian Liberal Senate Team, said today.

“The chief of Access Economists, Chris Richardson, told a mining industry conference in Canberra yesterday that the tax would slow new, or greenfield, development by cutting the return to investors,” Senator Parry said.

“That view echoes a report prepared by another highly regarded firm, KPMG.

“Prime Minister Kevin Rudd and his Labor MPs and senators might have chosen to avoid the mining industry, but they cannot run from the warnings of independent and well-respected economists.

“After putting Australia into debt, Labor now wants to slug the mining industry in a move that experts argue will dry up investment and cost jobs.”

Senator Parry said it was troubling that Tasmanian Labor MPs and senators have so readily dismissed the concerns of local mining companies, such as Grange Resources.

“Who knows the local industry better than those charged with making the business decisions about whether to keep the doors of a mine open and hundreds of Tasmanians employed?

“Grange demonstrated a commitment to Tasmania by continuing its Savage River and Port Latta operations when times were tough, and instead of receiving the respect of local Labor MPs, such as Sid Sidebottom, they are receiving curt emails.

“ It is very hard to have faith in supposed consultation with industry representatives in Burnie tomorrow when Labor MPs are insulting mining executives and our mining communities.”

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