Nationals WA leader Brendon Grylls should listen to the federal Resources Minister Matt Canavan – a fellow Nationals MP – after he expressed "grave concerns" over plans for a new mining tax.
In comments reported in The West Australian today, Mr Canavan said the WA Nationals’ tax plan was a "nasty surprise" for the resources sector and "it's something we have to be concerned about".
CME chief executive Reg Howard-Smith welcomed the comments.
“Brendon Grylls should heed the advice of his National Party colleague Matt Canavan and ditch the tax,” Mr Howard-Smith said.
“Mr Canavan knows this plan would cost jobs and investment in Australia – why Mr Grylls has selectively chosen to ignore that fact is beyond me.”
Mr Grylls’ ill-conceived plan would see a tax of $5 per tonne of iron ore selectively slapped on BHP Billiton and Rio Tinto – and in time every iron ore miner in Western Australia – on top of the royalties and other fees the companies already pay.
On top of this, they also pay a number of other fees and charges in order to sell the iron ore that is mined in Western Australia.
“Mr Grylls has been telling anyone that will listen the miners have a capacity to pay,” Mr Howard-Smith said.
“However, if his tax was ever to succeed, he could be assured of a massive cut to investment in his own electorate of the Pilbara as well as threatening Australia’s reputation as a safe jurisdiction to invest.
“As two of the biggest employers and economic contributors in the Pilbara, BHP Billiton and Rio Tinto have been driving the region’s future for decades. Mr Grylls’ plan threatens the very future of the region he has been entrusted with protecting and safeguarding.”