Title

Mining tax negotiations could last months: PM

Database

Electronic Media Monitoring Service 

Date

11-06-2010 08:11 AM

Source

ABC Canberra 666

Parl No.

 

Channel Name

ABC Canberra 666

Start

11-06-2010 08:11 AM

Abstract

 
End

11-06-2010 08:51 AM

Cover date

2010-06-11 08:11:36

Citation Id

325433

Enrichment

 
Reporter

EASTLEY, Tony

Speaker

RUDD, Kevin, (Former Prime Minister)

CURTIS, Lyndal

URL

Open Item 

Parent Program URL
Text online

No

Media Deleted

False

System Id

emms/emms/325433

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Mining tax negotiations could last months: PM -

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Mining tax negotiations could last months: PM

Lyndal Curtis reported this story on Friday, June 11, 2010 08:09:00

TONY EASTLEY: Despite some talk this morning that the Government is about to announce a compromise
in its messy fight over the proposed resources tax it appears that it's still some way off.

The Prime Minister and the Treasurer were both in Perth this week holding consultations with mining
industry figures.

Kevin Rudd was also talking up the benefits of the infrastructure fund which will of course benefit
from proceeds of the super profits tax.

Chief political correspondent Lyndal Curtis joins us now from Canberra.

Lyndal, good morning.

There's speculation of some sort of compromise but is the Government saying that that will happen?

LYNDAL CURTIS: No they are saying it won't happen. The speculation is that the Government would
make some sort of announcement today, maybe a back down.

The Government has always flagged that it's open to making changes about the tax. It's only
currently wedded to the 40 per cent rate of the tax so presumably there is a deal to be done on
everything else.

But the Government is saying that won't happen today. And Mr Rudd the Prime Minister ruled out an
announcement when he appeared on Channel Seven this morning.

KEVIN RUDD: Can I just say I've seen in some of the newspapers this morning. It says we are the
verge of a deal. The other newspapers are saying there will never be a deal.

The reality probably lies somewhere between all that Koshie. I think we have got weeks and probably
months of consultation yet with the major mining companies. We will work our way through the
detail.

I've had some good discussions with heads of mining companies, both BHP and Twiggy Forrest and
others. That continues with our Resources Minister Martin Ferguson.

The key thing is to make sure we get a fair return for the mining companies and a fair return on
the resources owned by all Australians in the form of better super.

TONY EASTLEY: The Prime Minister speaking on Channel Seven this morning.

Lyndal the Prime Minister said the consultations would take months. Can the Government actually
afford that sort of time period?

LYNDAL CURTIS: You wouldn't think so but in fact the consultations in the announcement the
Government made after the Henry Tax Review are scheduled to go well into next year.

Mining companies though are very unhappy with the consultation process, with having dealing with
the Treasury. They are still running full page ads. BHP this morning is seeking to get in ahead of
any deals, say it doesn't want a carbon copy of what was done for the petroleum industry years ago.

A compromise has to happen at some stage but as the Prime Minister said there is no sign of it yet.

The problem is there is an election coming within months so I think the Government would want
something within weeks rather than months.

TONY EASTLEY: Our chief political correspondent Lyndal Curtis in Canberra.