Canada has an economy similar to Australia, where due to the large land mass, the mining industry (especially recently) has boomed and rescued them from the GFC.

Their reaction to Australia's mining super tax is jubilation, and they are actively courting Rio and BHP, to develop the resources in their country.

In economics a normal return on an investment is commensurate with risk. Treasury bonds have sovereign guarantee and give the lowest return say 6%. Company bonds have a higher risk and give about 10-11% but would return nothing if the company failed.

Given the variability of mining the returns are anything from a total loss (which happens more frequently than most people realize) to the huge profits that Rudd is focusing on.

To add an impost on mines doing well, but not allow any reprieve for mines doing badly, or allow deductions for other related costs is pure larceny.

I have a problem with the Federal Government’s description of mining resources as “owned by the Australian people”. Gavin and Colin also express this view.

As I understand it, resources are not and never have been a Federal resource, they are State owned.

Can anyone clarify this please?

has boomed and rescued them from the GFC.
Shadow Minister,
Yes we'd have Gross Financial Collapse (GFC) if it weren't for the wholesale flogging off of our natural resources. We can probably continue this practise until it no longer concerns us but some of us DO THINK of our children's future. There really is no moral excuse for not slowing down this exploitation. the one & only reason this demand is so high because of so much frivolous industry which supplies to frivolous customers. frivolous i.e. unnecessary commodities are what causes so much pollution & fosters never ending greed. Just look at the many different models of cars. It's insane ! Look at all other similar commodities. Is there really any justification for so much pampering in choice of choice ? Go to any supermarket & look how many items are literally the same. All this is causing too much industry & speculation. Yes we do need an economy but for crying out loud does it have to be at the cost of everything else ? Is using up natural recourses & manufacturing really the only option to get tax money ? Why do we need so much tax money ? How about cutting back on money paid for no value ?

Let's get a few facts straight. Crown land in offshore areas, the Northern Territory and the ACT belongs to the Commonwealth Government, and they are entitled to extract a resources tax if they wish. However Crown land in the States belongs to the people of that State, not to the Commonwealth, and that is why the States collect royalties on their mining activities. This attempt by Rudd to enact a resource tax is just another Commonwealth attempt to take over State powers, without the consent of the people.

Next, let us consider the prudence of imposing the tax. If the tax were to be levied on NEW mining projects, that would be fair enough, as new investors could then decide if the project was still viable. But to impose it retrospectively on existing projects, thus changing the viability of a project to which investors have already committed funds, is fraught with danger. Which foreign investors are likely to commit to new projects under these circumstances?

Of course the reason existing projects are being targeted is that Rudd is desperate for money.

Thank heavens for the Senate!

The whole thing reminds me of 1984 when David Longe played silly buggers with the US over nuclear powered ships, and Wall Street decided it would be a good time to call in New Zealand's foreign debt.

The result was that NZ housing interest rates went to 24%.

If Rudd is not careful, the same thing could happen to him.

There’s nothing like the smell of filthy lucre to induce hysteria in OLO’s right-wingers but the mining industry (and its lapdogs) have a long history of campaigning against threats to its privileged position.

In the event of a protracted bun fight over the super tax, the Native Titles Act (and indigenous communities)may just sabotage the mining industry. Seen any affluent bush communities lately who’ve leased their lands to the grim reapers?

Who remembers the hysterical outburst from the gold miners when during 1997, the Western Australian government introduced for the first time a royalty on gold producers, thus removing gold as the sole mineral exempted from royalties in the State. Tut tut!

Bernard Keane over at Crikey writes: ‘Watch for the predictions of job losses, reduced dividends and abandoned projects. Watch for the dodgy modelling from economic consultancies designed to back up the wild claims. But also watch for what they tell investors, because they tell the public one thing about how disastrous things will be and investors and the ASX quite another.’

Rudd's proposal is intended for the common good. Then in direct contrast, we have self-interested industries and adoring fan, John Howard, eco-vandal and industry sycophant. Who recalls Howard's buddy, big shot Len Buckeridge and his application for a brickworks on Commonwealth airport land in WA?

The WA State government disallowed Buckeridge's application on environmental grounds (including concerns over the number of existing brickworks)but in stepped little Johnny to override State law. So what's new here and was Howard's Commonwealth intervention in the public's interest? Huh?

As a consequence, the Swan Valley grape growing region of WA now has five brickworks in close proximity to the valley, all spewing out hydrogen fluoride, hydrochloric acid , oxides of sulphur, oxides of nitrogen, volatile organic compounds and only the Gods know what else. Anyone for a vino cocktail?

Norway already imposes a 50% resource tax. This clever country will have saved more than $12 billion by 2020 to upskill all its workforce when the oil runs out and Australia's plundering mining industry better believe it!

You can't be serious , Protagoras, Saturday, 15 May 2010 6:22:18 PM

Norway where a glass of Beer costs $10 and a wikki pop with anything remotely decent cost's 800 to 1200 Bucks ! Why would they complain about a 40% R/tax the poor buggers are defeated , thats why they all nick off to Latvia on weekends where it's buy one beer get three free .

We Aussies really are Mugs , it's you and I that get to pay the tax , how can you buy a car and not pay the resource Tax , what about your shed your dreaming about , is the Quarrie Owner who supplies the material for your Slab called Father Xmas ? Get with the program Mate !