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Mining Unions Say Resource Super Profits Tax Will Increase Jobs

4 May 2010, 10:31am

Australia's two dominant mining unions have come out in support of the Federal Government's resource rent tax and will campaign together to ensure that this important result of the Henry Tax Review helps rather than hinders the development of regional and remote Australia.

 “ Neither the AWU or the CFMEU will stand by and allow Big Mining to run a scare campaign which hurts the job prospects of our memberships,” the Australian Workers’ Union National Secretary, Paul Howes, said today.

Infrastructure spending to improve productivity and family lifestyles

 “ To ensure that the resource rent tax is a plus we want to see a high level Task Force established very quickly to talk about the types of social infrastructure that regional and remote Australia needs – and how a tax on the super profits of the mining industry can pay for this infrastructure,” Tony Maher, the CFMEU national president said.

 Both the AWU and the CFMEU have for some time been concerned about the development of a fly-in fly-out work culture which people in the resource sector are forced to accept.

 “ This type of work culture dominating our industries is not good for families, and not good for workplace productivity,” Paul Howes said.

Support new economic opportunities away from big cities of south-east Australia

 “ We want to see top level decision-making which will see the spending on quality infrastructure for hospitals, schools and affordable housing in remote Australia which will not only allow families to  establish strong roots in the regions – but also support new economic development away from the big cities of south-east Australia.”

 The two unions are also keen on seeing resource tax dollars spent on the training and upskilling of Australians, to take on the rapid  expansion of resource jobs.

 “ We want jobs and training opportunities to be made available for the many indigenous communities in remote Australia who are locked out of resource sector work. We also want job opportunities for our young people, who could work in the mining industry and associated sectors if only the training was made available,” Tony Maher said.

 “ The new resource super tax should also provide more incentive for miners to undertake local processing – thus providing more support for the creation of new job opportunities in our manufacturing base -  in particular for alumina, aluminum and steel,” Paul Howes said.

Improve long-term futures and opportunities for marginal miners

 Tony Maher and Paul Howes said they want to work with marginal mines who feel their futures might be affected by the change in tax arrangements.

 “ Certainly our advice is that the super profit tax improves opportunities for marginal companies in the mining sector – this will improve their economics and improve the job security of our members.

 “ This tax will enable more projects to go ahead and allow older, high cost operations to stay in business – all of that is a positive for Australian job creation,” Tony Maher said.

 “ Our two unions are confident that we can ensure marginal mines can be secured – and we will ask for a long and detailed consultation period so we can deliver to this sector,” Paul Howes said.

Resource rent tax improves the return to the Australian community

 “ A resource rent tax will improve the return to the Australian community on our non-renewable resources rather than relying on royalties which have actually declined in recent years,” Paul Howes said.

 “ The Federal Government’s proposals are actually in line with other leading economies who have a significant resource sector.”

4 May 2010

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