Speaking before the House of Representatives in Canberra on Monday, Mr Wilson labelled the proposal, mooted by Nationals leader Brendon Grylls, as a tax grab to extract more dollars from the resources industry without discipline or restraint on government spending.
“The Nationals have decided to revisit a number of state agreements in an easy and popular way to raise more cash for WA,” Mr Wilson said.
“There has been no suggestion about finding efficiencies in government spending or cutting back on programs that are wasteful.
“I have no doubt that placing another tax on the resource sector will damage business confidence and potentially drive investment away from Australia to other resource provinces around the world.”
CME chief executive Reg Howard-Smith said Mr Wilson’s sentiments have been shared by many including the Labor and Liberal parties who opposed the tax.
Federal Minister for Resources and Northern Australia Matthew Canavan has also criticised the proposal for damaging Western Australia’s reputation as a stable destination for attracting investment and jobs.
“WA has done the right thing over many years by developing the natural resources within our state boundaries,” Mr Wilson said.
“Resource companies have in turn generated huge wealth for employees, shareholders and the State and Commonwealth governments in the form of royalties, payroll tax, company tax and the petroleum resource rent tax.”
Under the proposed tax, BHP Billiton and Rio Tinto would be slugged with an additional tax of $5 per tonne of iron ore on top of the 7.5 per cent royalty rate and other fees and charges they already pay.
Mr Howard-Smith commended Mr Wilson’s stance on the detrimental policy and questioned the political motives of Mr Grylls.
“Mr Grylls seems to have forgotten his own views on the Federal Government’s Resources Super Profits Tax, which was eventually scrapped,” Mr Howard-Smith said.
“If the proposed tax was successful, Australia would become the world’s highest taxing iron ore jurisdiction.
“Western Australia would officially become the least attractive destination for investment, giving an edge to global competitors and jeopordising billions of dollars in community investment.
“Mr Grylls might have you believe his intentions are honourable but clearly has had doubts about a mining tax before.
“The only difference now is he is looking for votes ahead of a State election in six months time.”
