Liberal Democrats – Liberal Democrats to save Australian mining

Liberal Democrats to save Australian mining

Issued 14 August 2010

“The Greens, Labor and the Liberals are driving Australian mining offshore,” says Mark Walmsley senate candidate for Western Australia.

“Intentionally or not, the combination of high taxes, restrictive work practices and stifling business regulations are forcing BHP, Rio and others to pursue opportunities overseas.”

BHP has previously announced its intention to develop a $6 billion iron ore hub in West Africa. Earlier this year Rio Tinto announced a joint venture deal with Aluminum Corp of China to develop Guinea’s Simandou iron-ore deposits, also worth around $14 billion.

“If BHP and Rio Tinto were so happy with the MRRT deal negotiated with the Gillard Labor government, why are they accelerating plans to develop overseas iron ore mines?” Mark said.

“This raises two key issues. First, what are any of the major parties (Liberal, Labor and Greens) doing to entice BHP and Rio Tinto to stay in Australia? Our living standard will decline unless they do. Second, what damage will the current tax, workplace and regulatory regime do to those mining companies forced to stay in Australia, such as FMG and Atlas iron?

“BHP, Rio Tinto and Xstrata did a deal on the MRRT with the Gillard government immediately prior to the federal election, but local Australian miners and their representative bodies were excluded. As a result the deal will limit the ability of emerging miners to challenge the established global miners.

“Australia’s future living standards depend on us remaining a global mining power house. The Liberal Democrats renew their call on whichever party wins the election to negotiate with the States to reduce royalties, reform workplace laws and reduce regulation to make Australia competitive again.

“The Liberal Democrats have a suite of policies that will make Australia competitive. We advocate smaller government, lower taxes and greater freedom. We invite Australians interested in improving their living standard to consider voting for the Liberal Democrats, particularly in the Senate,” Mr Walmsley said.