‘Big step’ taken in ending mining tax row

Australia Prime Minister Julia Gillard Sunday said she had taken a “big step” towards ending the dispute over a planned 40 percent tax on resources profits by calling an advertisement truce with miners.

Gillard, who was sworn in on Thursday after ousting Labor Party leader Kevin Rudd in a party ballot, said the so-called “super profits” tax was foremost on her agenda and immediately cancelled government advertisements on the issue.

“I think I’ve taken a big step forward... for goodwill and respect in the discussion about the mining tax by saying we, the government, would take our ads off TV screens if the mining industry did the same,” she said Sunday.

The mining industry responded to Gillard by cancelling their advertisements, which had argued that the proposed tax would hurt the country’s most valuable export industry and drive jobs and investment overseas.

“I think that’s given us a terrific foundation to now have the genuine negotiations we need to get to a conclusion here,” Gillard said.

Gillard refused to speculate on whether she would change the rate, proposed to be at 40 percent, at which mining profits would be taxed but said the anxiety about the levy had been unsettling.

“I’ve indicated my concern about the anxiety that this has caused Australians,” she told the Nine Network.

“I don’t think that that uncertainty is good for us. I don’t think it’s good for the nation.”

Gillard said the mining industry was open to paying more tax but the question was how this could be structured.

Sydney, AFP