NSW mining tax hike leaves resource giants untouched

While state governments battle the Commonwealth for a share of mining wealth, coal and mineral companies will continue to avoid paying their way, according to Greens NSW MP John Kaye.

Dr Kaye said: “Australian governments are playing brinkmanship over who collects the meagre taxes on mining companies. NSW taxpayers are watching the lion’s share of the state’s mineral wealth disappear into company profits.

“NSW Treasurer Mike Baird’s mining royalties increase will only take money off the Commonwealth, not the resource giants. The O’Farrell government is managing federal-state relations by media release.

“Federalism is reaching crisis point.

“Instead of a rational debate about the NSW’s need for more funding to provide public services such as education, health, transport and hospitals, state and federal governments battle it out over a tiny share of the massive money made from extracting the state’s coal and other minerals.

“NSW Premier Barry O’Farrell continues to exaggerate the impacts of the carbon levy on the state’s finances to score points against the Federal Labor government.

“The conflict might work for the Coalition’s short term political game, but the argument over who collects the resource taxes is a distraction from the real challenge of making sure the mining companies contribute  to the cost of running the state.

“This budget should be about building strong public services and transitioning the state’s economy out of its dependence on real estate, gambling and mining.

“Instead it has been sidetracked by a partisan political debate between the Gillard and O’Farrell governments,” Dr Kaye said.
For more information:    John Kaye 0407 195 455