Taxing the miners:
Ben Aveling writes: Re. “How can you tell the mining industry is lying? It’s issued a press release” (yesterday, item 1) If the resource supertax does slow the growth in mining jobs, is that such a bad thing?
Given that the “real” parts of the economy are at least anecdotally suffering in competition, taking some heat out of mining is probably a worthwhile goal in and of itself.
Chris Main writes: “Business as usual: oil spill cost up to $12.5b … the end nigh for Camwest … unremitting gloom forecast in the UK …” (yesterday, item 23). Both Bernard Keane and Glenn Dyer both claim the Newcrest takeover of Lihir Gold is proof that concerns over mergers and acquisitions activity in Australia due to the Resource Super Profit Tax are overstated.
As the majority of Lihir’s operations are located outside of Australia (88% of EBITDA for the six months to 31 Dec 09 from PNG & Africa, vs. 75% from Australia for Newcrest), this argument doesn’t stack up. Australian based companies with operations offshore won’t be affected, but companies with Australian operations will.
Expect to see more investment in offshore operations and less investment in Australian operations, regardless of the location of the head office of the companies involved, if this goes ahead as announced.
Backbenchers:
David Lenihan writes: Re. “What the backbenchers will tell us” “Richard Farmer’s chunky bits” (yesterday, item 9). Perhaps if the backbenchers as a group had more spine and guts, they would have told Rudd, what Labor supporters generally have been trying to tell this very odd PM, they are not happy with his spin, grand talk, flip flops, lack of intestinal fortitude (climate change shelving) and above all loyalty to those who put him in the Lodge.
Mr Rudd has a very short memory and seems to have completely lost the plot on how to retain Government. He said today, his job is to act in the national interest and he will continue to do just that. It may be time for Mr Rudd to contemplate just what the National interest is, instead of merely contemplating his navel and what his next unfunny line to a journalist will be.
Small business:
John Shailer writes: Re. “Henry Review: how did the government respond? It didn’t.” (Monday, item 1). I hope Australia’s 2.5 million small business proprietors and their employees don’t fall for the pea and thimble trick by Kevin Rudd and his media supporters, and believe the Henry Review tax package assists small business.
The reduction in company tax (if it happens — can you name a promise Kevin has kept?) doesn’t apply to two thirds of the unincorporated businesses, and amounts to a saving of about $200m. p.a for all the remainder.
The $5000 immediate tax write-off simply accelerates an existing depreciation claim. However the 33% increase in the super guarantee levy will cost businesses about $10billion p.a., and inevitably will be funded from a reduction of proprietors income and the loss of employee jobs.
With a friend like Kevin, small business certainly doesn’t need enemies!
Richard Farmer:
Andrew Lewis writes: Re. “Richard Farmer’s chunky bits” (yesterday, item 9). I’m not sure what exactly is happening to Richard Farmer but I think I would like to imbibe some of what he is smoking.
The normally sensible Farmer opined a few days ago about “it is only a rare beast like Howard who is prepared to tackle real change.” Well that stopped me in my tracks. When you consider that Howard genuinely effected one economic reform in 13 years of government, that being the GST, it hardly makes him a rare beast. All the rest, including WorkChoices, was either flummery or a problem for a future government to undo, witness the colossally stupid idea of paying only half your tax rate for capital gains. D’oh!
And then yesterday’s effort, “I hope there are a few people out there practising their mea culpas re Jessica Watson.” No, not at all Richard, a stupid and pointless exercise remains that, even when it has been successfully completed. Well done Jessica, you have completed something that is pretty much pointless, scarily self-indulgent, and you have done it successfully. Bravo. I said it before you left and it’s only right that I should say it on your return. Pointless, meaningless, just-who-is-exploiting-who indulgence. Please stop now!
Enjoy your fame Jessica and family. Please excuse my lack of admiration.
Excuse me, Ben Aveling? Exactly how is the mining industry not “real”?
Apparently I’m not the only one non-plussed by Richard Farmer’s positive remarks on Jessica Watson.
How long before an even younger adolescent decides to challenge for the dubious honour of Youngest Person To Sail the World? It will be sooner than we think, I guarantee. There appears to be no end to these fatuous exploits – a great deal of time, expense & effort to attain….what?
Oh ye with little imagination and a three inch world view! In this age where adventure and enterprise are measured in how long you can keep up your latest financial scam, and danger in terms of RBA rate announcements, what this amazing kid with the funny grin has achieved in physical and mental terms, her bravery, and that of her parents and friends obviously exist in a place well beyond your ken.
I, like many others, had some misgivings when she nudged a ship during work-up but she was judged ready by those best placed to make that judgement and, having staked her all, looks like earning her place amongst the heros of legend.
Jessica, this old mariner salutes you.
Not ‘real’ in the sense that most of what we mine goes overseas, the outputs of the industry don’t directly contribute much to Australian life.
If the industry vanished, the impact would be a loss of foreign income (much of which doesn’t stay in Australia) and a relatively small number of jobs – a significant impact to be sure, but much less than many, probably most other industries.
I assume you’re familiar with Dutch Disease?
There are regions and industries in Australia which are suffering because they can’t afford workers because their staff are all going into the mines. And it makes the dollar higher than it otherwise would have been, and that all means that interest rates are higher than they would otherwise be.
That said, given than mining is more profitable than other industries we probably do want to rebalance the economy towards mining, at least somewhat. But not totally, because there is a reasonable likelihood that mining could suddenly collapse (it always has in the past) and so it does make sense to put , not roadblocks, but perhaps speedbumps, in the way of the mining industry.
Andrew Lewis, your lack of admiration for Jessica Watson is an opinion you’re entitled to. Your pressing need to announce that opinion to all and sundry, at much greater length than it took to make your point, marks you out as having exactly the sort of mediocrity you tried to describe. You don’t even show talent as a knocker.
Good on you Jessica Watson. A very impressive feat. As I predicted, you now get to enter adulthood with the knowledge that you can achieve anything you set your mind to. Something the knockers will never understand.