Did any of you Rudd lovers notice how much the mining royalties put directly into the Queensland budget?

Do any of you have any idea of what their combined payroll is in Queensland?

Did you know they actually pay their workers, correctly, & on time? Wow, with this labor lot in QLD, I'd like to see that.

Hasbeen
You obviously don't read OLO very well otherwise you would know that many arguing for the tax have not defended Rudd on the essentials of his government and I remember Custard's comments on another thread regarding his/her disappointment with Rudd.

That is the trouble with the party system in this country it breeds the sort of attitude Hasbeen displays where you have to stick like glue to one side of politics regardless of how damaging their policies might be, and criticise the opposing one no matter how good their policies.

It is the sad state of politics Australian style.

Hasbeen if you want to argue the merits or non-merits of the Tax feel free but don't purport to know the minds of others.

*I don't see why I am being forced to subsidise them, by selling my children's inheritance for a pittance.*

Custard, get used to it sunshine, you don't "subsidise" anyone, for
you don't own anything. Once again, minerals belong to the States,
not to you. That is why States are paid royalties and if anyone
should be active, its States getting better royalty deals, as has
been happening in both WA and Qld.

The problem is, neither you nore Pelican understand the basics of
how companies make decisions. Just read what informed business
commenators are saying about all this. Reading the Union Weekly
is not going to do it for you, I am afraid, for they know as
little as you do.

Of course jobs won't be lost in mines already going. They are not
where all the jobs are and money is spent, they just tick over.
Its in new ventures that the serious money is spent, if its worth
while doing. If its not worthwhile, it won't happen. Take most
of the profits in tax and it won't be worth investing.

How do you think all those thousands of small mining prospectors
are financed? It by investors bankrolling them. If there is no
worthwhile profit at the other end, its simply not worth bankrolling
them in the first place, better invest the money elsewhere.
Money is easily moved, it can move industries and it can move
countries overnight if required.

Yabby that is just not so. Banks will bankroll anything they think will turn a profit, and where there is a belief they will get a return on investment with obviously attention to risk management factors.

The tax is on the PROFIT. How will this affect one's ability to pay on the loan given the costs of the loan are deductible.

This will make no difference to the banks in terms of risk management.

Hang on Pelican. Last year BHP paid 6.3 billion in tax, they are
hardly avoiding it. On top of that they paid payroll taxes and a
host of other taxes. Then they created the opportuniy for thousands
of workers to make serious money and pay a heap more.

43% is hardly no tax. Miners are not unreasonable people. Had
the Govt sat down with miners and come up with a win-win situation
for all, that would have been the way to do it.

Instead power has gone to their heads, as happens with many 2 bob
politicians when its handed to them for 5 minutes and they thought
they could thump this through as the public would not care about
miners. How it was done, is as much at issue here as anything.

Now they are crapping on that they will discuss things, but all
the major points are not up for negotiation. Its all frigging spin!

There are a number of issues here. Firstly Rudd has no right to
ride roughshod over States rights to minerals and royalties.
Secondly in a claimed first world economy, we should not be
using banana republic tactics in business, or that is what we
will become.

I remember you praising the virtues of Venezuela. I saw a list
of interest rates last night. If you were in Venezuela, you
would be paying 20% plus. That is what happens in banana republics.

If mines break even under new tax or make a loss then we receive no compensation at all for the resources removed. China will be interested in getting into ventures as they are not multi-national trying to make a profit for shareholder rather a nation needing resources. So we could be giving away from nothing.

International investors require incentive. This tax is to try and return profits to normal business levels. The tax is to fund non mining sector tax cuts because ordinary profits are not attractive to foreign investors due to high taxes. So the whole rationale is to transfer from mining to non-mining sector exposure to foreign investment. They have not been interested so far why now? So who will want to stay the course, China. They want to make profit for shareholders? Nope. Can the government ensure that majority of minerals mined are paid for? Nope. Prefer profit driven enterprise that will fight tooth and nail for high commodity prices and there pay increased wages, taxes, royalties or kick them out and have the miners who just want our stuff and if they make a loss they do not care.

The minute the commodity prices come off the boil we may face massive liabilite.

So are Australians committed to the bad times as well when we will be paid nothing at all and in fcat may have to pay for failed projects. Also we do not have enough investment capital so who will pay for the mines, very capital intensive.?

So the deep pockets will decide at end of day, Not the miners, not the governemnt and not us. The ones with billions of dollars will decide and they really do not seem to like the new tax so I do not like the chances of success. And if we fail we will be donating the resources for nothing. How wonderful.