Anthonyve ... continued

You may think that the mining tax will provide a mechanism to stop those evil mining companies from denying the people their fair share.

What I have trouble with is the recent initiative of the federal mining tax, on several levels:
(1) It can be seen as non-constitutional to target a single industry given the states’ rights to levy royalties on mineral extraction
(2) It is based on cherry-picking one of many tax reforms from the Henry Report
(3) The Henry analysis & recommendation of the original 40% rate is so simplistic and naive that it beggars belief
(4) The modified tax arrangement was brokered with the representatives of three major resource houses who's business is largely in iron ore & coal (the subject of the tax). I hardly expect that this was a act of unilateral altruism and suspect that the conditions will be such that these companies will pay very little of the tax anyway.
(5) The current government is counting on the revenue from the mining tax in its forward projections – a relatively small drop in commodity prices will see the receipts vanish and there will be (another) big hole in the books

The other problem is that this punitive tax has irreparably damaged the sovereign risk for investors in Australian resource projects. I was speaking with a senior Chinese mining executive about six months ago and he basically said that he cannot recommend investment in Australia for this very reason. (This will also probably make you happy).

Hi 579,
Yeah, the roots are a concern.
Also getting out of the controlled area.
The plan is to use an asexual, clumping bamboo with manual prpogation.
It's a bit more labor intensive at the start, but much easier to control.

Peter Mac,
The Right Wing politicians in Europe fully accept that global warming is real.
Also, the are twenty something countries in the E U, but we only hear about the one's in trouble.

Hasbeen,
Regarding the Chinese, although they have huge polution problems, they are doing more to combat global warming that any other country on earth.
Yes, they are opening many new coal fired power stations, but they know they have to to sustain their population.
But they're also working hard at developing alternative energy sources.
Sure, they'll laugh at the west, when they own the technologies of the future because we were too stupid to develop green economies.
Anthony
http://www.observationpoint.com.au

Anthonyve,

I also would like to address your suggestion to “take away the miners's tax break on deisel.”

This is not a tax break but an exemption from payment of the fuel excise levied on the sale of diesel fuel. The excise is imposed to raise funds for the development of roads and other infrastructure for vehicles. The exemption from this excise is for primary producers (miners and farmers mostly) and only applies for fuel used off public roads – simply put, if you don’t use the roads, you don’t pay the excise. For miners, it is mostly applicable to fuel used for power generation in remote areas and for mining equipment. Any fuel used in association with public roads (eg. transport of mineral to port) is not subject to this exemption.

Anyway, the carbon tax package has answered your wish partially - the excise rebate will be reduced by 6c/litre next month.

You may also be interested to know that the federal funding for roads is only about half of the excise collected – this again has translated into another “general revenue” item that is funded by all road users directly at the bowser and indirectly through purchase of goods.

You views reflect the narrow-minded cash grab of the current federal government. There is seemingly little logic applied to this.

rehctub

I doubt whether a Government who has been consistently humilated by their own lies and actions would be capable of a little humility in swallowing their pride and changing direction. The amount of money spent on the gw farce as the hypocrites travel the globe preaching their false gospel could of solved much of our pollution and poverty problems by now. The deceit of the carbon tax is certainly the most annoying and an embarassment to any thinking person. Beside the usual Labour lovers on OLO it is hard to find someone who admits they voted for this mob.

Ludwig, I'm not so much opposed to a tax on carbon, rathe, the way it's being implemented.

An EST would be much better, as plouters have to buy credits, before they can pollute.

This carbon tax is simp,y a license to pollute, so,long a one pays the tax.

Over all though, I don't supper any such tax, as it's the demand from consumers that causes carbon, so why reward them.

Anton, we are so heavily dependent on China, that if they sneeze, we will have a heart attack.

Given that the US and EU are their largest importers of goods, goods that feed our demands for resources, yes, I do think it effects us.

For those who think the mining tax is fair.

Imagine this scenario, you go to the bank and borrow $200,000 to start your own business. You are extracting gravel from your private property.

you go to your advisers, they assess your business plan, taking not account your input costs and a margin for unknowns.

All sounds good, the bank gives you the tick.

So, you start your business and it's pretty good.

You start paying tax on $250,000 per year life's great!

Then, the government says, by the way, we are changing the rules, so you can now keep $24,000 per year, after tax (12% return on investment), then after you pay your 30cents in the dollar tax, we want 40% of what's left.

So, what's the difference in Your business, to mining.

That's why it's wrong. You can't shift the goal posts mid stream and expect investors to wear it.

But the point of the thread, is, is this the right time to introduce these huge reforms, given the global turmoil.

Remember, the reserve bank is even warning we are in for tough times, with some suggesting interest rates may fall to 3%.

Doesn't that tell the government something.

Finally, where to if the plan fails?

Any suggestions from the brains trust?

Rechtub good win to your Broncos, rode them hard.
But sorry you know about a tenth as much as you think you know about carbon tax.
In time, within ten years, looking back at Abbott's frenzy, half truths, lies with deliberate forethought.
Henny Penny on steroids stuff.
I can hear such as you now, *we never fell for it*
Not much more than 100 years ago, we did not pump oil by the millions of barrels, had 2 billion humans, now we near 7 billion.
We must stop consuming faster than nature can renew.