Doorstop Interview

Brisbane

11 June 2010

SUBJECTS: Resource Super Profits Tax

TREASURER:

Well, we've had an extraordinary statement from the Leader of the Opposition Tony Abbott today. He has said today that if he were elected there would be no change to taxation of mineral resources whatsoever. Not even the Mining Council accepts that position. They think that there should be reform of the royalties system; they think that it should be replaced with a profits based tax. This is perhaps typical of Mr Abbott's position here, because he is probably the only person in the country who has said that they pay too much tax. The mining industry I think, does accept that there is a need for them to pay a bit more tax.

So now Mr Abbott says no reform at all of the outdated royalties system, that the miners pay too much tax. I think it all demonstrates that Mr Abbott is completely out of touch and not capable of grasping the essentials and the reform that is required in this economy to maximise the opportunities as we go through into the future.

JOURNALIST:

Has Martin Ferguson been called into emergency talks because some of the big miners are considering walking away from talks about the tax?

TREASURER:

I'm not sure what you're talking about there - Minister Ferguson and myself, and the Prime Minister have been talking to mining companies for some weeks, in fact ever since the proposals were announced in early May, and I don't think there's anything different happening to that.

JOURNALIST:

Do you think the $2 billion infrastructure spend in Queensland will win the state over as far as the RSPT is concerned?

TREASURER:

Well, what the Government is determined to do, is to make sure that the mistakes that were made by the Liberals in mining boom mark-I are not made in mining boom mark-II. The previous government didn't devote any resources to investing in critical infrastructure particularly in the mining regions.

Part and parcel of this proposal are resources to invest in mining regions who really feel it when there is a lot of activity in their region. We are committed to those regions, and that's why we're putting forward these funds.

JOURNALIST:

How long do you anticipate the talks and negotiations to continue for? The Prime Minister said it could be weeks or months, but Julia Gillard has apparently said that there are some clear points of agreement. Aren't those two statements in conflict?

TREASURER:

I don't think they're in conflict at all. I'm familiar with those statements today and the most important thing is that we will continue our consultations and we'll get it right, and we'll take the time that we need to do that. That's the most important thing. Thanks a lot.

JOURNALIST:

Oh, Mr Swan, can I just ask you one more question before you go? A lot of the mining companies think that there shouldn't be a flat 40 per cent rate for the RSPT and it should be divvied up and depend according to which commodity it is. Do you…

TREASURER:

We've made our position very clear here and I made it clear on the day that we made our announcement. That there would be a 40 per cent profits based tax with generous transitional provisions and we'd talk to them about all the details. Thanks very much.