Why we need a Resource Super Profits Tax:
So that we can discourage investment instead of encouraging it.
So that mining companies will move to other countries,
taking jobs and existing tax-paying capability with them.
So that existing related infrastructure can deteriorate and the taxpayer can step in to rebuild it.
So that we can live the socialist delusion that this time it will work.

Currently the Australian economy is growing at around 3% and unemployment sits at around 5%. The last time it was in the position was 2006 and the Federal Government reported a surplus of $17.3 billion.
This year under similar economic conditions the Federal Government is projecting a defict of $40 billion. This is a $57 billion turnaround. Why do we need a RSPT? To pay for all the wasted expediture undertaken by the Rudd Government.

Why do we need a RSPT? To pay for all the wasted expediture undertaken by the Rudd Government.

That pretty well sums it up I think!

Just imagine where we might be if these fools get another go at running the country.

God help us if there is one!

The latest essential report shows a clear majority supporting the tax by a 7% margin.
http://blogs.crikey.com.au/pollytics/2010/05/24/essential-report-trust-and-rspt/#more-7872

I think that this whole kerfuffle will just blow over after final negotiations. Caviar-munching mining magnate billionaires will pay some more tax and that will be it. Mining will continue as it always has. The hysterical argument that investment in Australian resources will collapse forever will be shown to have been masterbatory.

I guess that it is also just possible that it will eventually come to be broadly realised that while mining is important (and crucial for my resource sector hometown), referring to it as "the golden goose" is somewhat overstating things and often leads to the general impression that it is the be all and end all of employment creation - in fact, it accounts for just 1.5% of total employment. Even accounting for the downstream flow on, it would be lucky to make up much more than 5% of total employment.

So important yes - but I wouldn't be getting my knickers in a twist over the new tax. It's mostly just self-serving hype from the likes of Clive Palmer and co.

*The hysterical argument that investment in Australian resources will collapse forever will be shown to have been masterbatory.*

That argument was never made Fozz 2, apart from it seems, by
yourself.

The likes of Marius Kloppers of BHP are far more intelligent
and have far more integrity, then our bunch of 2 bob politicians,
its seems.

What they are simply pointing out is this: Mining developments
involve many billions of $ of capital investment upfront, all
provided by those prepared to take a risk on their savings
and investments, in hope of making a reasonable return for
that risk.

In the past, Govts of all persuasions have pleaded and
encouraged miners to make these investments, based on the
understanding that they were reliable and would keep their
word. Fact is that they can no longer be trusted and maybe
miners should demand written guarantees in future, about
changing the rules, once billions have been spent.

Miners will clearly keep mining developments where they have
already outlayed billions, to not do so would be foolish.

But given the new sovereign risk, the near doubling of
taxation on returns, miners will have to closely evaluate
any new investments in the future, for other options are
available elsewhere.

Let the Chinese mine in Australia, for of course on paper
they don't need to make any profits, so pay no tax at all,
but I'll let you learn all about their way of doing business
the hard way.

I didn't coin the term "kill the golden goose" Yabby, you need only check headlines of The Australian to find terms like that.

Scroll down just two articles in this forum and you see "How to disembowel an economy" as the terrifying headline for an article in which the author invokes shades of Hugo Chavez - truly scary if all that were fact rather than hype, especially if as one poster argued somewhere that "without mining we would be a banana republic".

If I went through current news reports and forums it would not take long to fill the post word limit with such gems. What is needed is calm discussion, not wild claims and counterclaims.

The miners will not go away if they end up having to pay more. Mining cannot simply be picked up and plonked down somewhere else if you don't like the tax regime in one place. The minerals are in the ground and they are not evenly distributed all over the world, they tend to be concentrated in hotspots and it is not rare for such places to truly fit that definition - bandits, civil wars, coups and unstable regimes. Remember Bouganville?

From an article in The Business Spectator:

"Qld govt to consider coal producers' rail network offer

The Queensland government has said it will consider the merits of a $4.85 billion bid submitted by a consortium of coal mining firms to buy the state's coal rail track network.

"The government has received a proposal from the coal miners' consortium and we would look at the specifics and merits of the proposal," a spokesman for the Queensland State Treasurer Andrew Fraser said."
http://www.businessspectator.com.au/bs.nsf/Article/Coal-producers-put-forward-cash-offer-for-Qld-rail-pd20100526-5SVMU?OpenDocument&rf=s
Umm guys, you're supposed to be avoiding Australia like the plague because of this "great big new tax" remember?

It's largely bluff and bluster by companies trying to get the best possible deal. There will be some more argy-bargy, the government will likely compromise on a couple of things, a deal wil be reached and that will be it. Mining will continue to lucrative.

Storm in a teacup.