Mr BAYLEY – One of the many recommendations from Saul Eslake’s independent review of the state’s finances was to increase the rate of mining levies, noting that Tasmania can do and, I quote:
without rendering mining operations uneconomic, noting that mining royalties are deductible against federal company tax liabilities.
He’s saying we can do this without significantly impacting them. Mining levies in Tasmania are some of the lowest in the country and disproportionate to the incredible wealth that the mining industry extracts from Tasmania’s natural resources, but the government has continued with the refrain of ‘no new taxes’. With our finances in such dire straits, shouldn’t you be doing anything that you can to ensure that companies are paying their fair share, or are you happy to give Tasmania’s resources away to the lowest bidder?
Mr STREET – The Treasurer has made it clear that he’ll deliver a comprehensive response on behalf of the government to the Eslake Report and all of the recommendations. I don’t know whether Gary wants to add anything to that as well?
Mr SWAIN – The only thing I can say is I think the Treasurer’s comments made clear in this place a couple of days ago that the settings that were in the Budget reflected the circumstances of the time, and weren’t set in stone for all time. There are particular cost-of-living pressures which are contemplated in the Budget. The effect of interest rates through into rental housing and rentals is contemplated in the Budget. There’s a whole set of current circumstances that would be reviewed as you go through each future budget.
Mr BAYLEY – Do you see that, minister, as opening the door? Surely, you recognise the difference between raising new taxes for individual Tasmanians? I think he also talked about car registration and other initiatives versus raising taxes for corporations like Grange Resources who made $151 million profit in the last financial year, predominantly from its Savage River Mine. Don’t Tasmanians deserve to be compensated for the resources that companies extract from public land?
Mr STREET – Again, that’s a policy decision for the whole of government. Much like Mr Willie’s question, I’m responsible as Minister for Finance for the mechanics of collecting this revenue, but it’s a whole of government decision. It’s something that I would imagine the Treasurer in his response on behalf of the government will address.
Mr BAYLEY – Do you read that as a commitment to review mining levies, the comments from the Treasurer the other day, or are you willing to give a commitment on behalf of government to review mining levies?
Mr STREET – No, I’m certainly not going to be giving a commitment sitting at this table without having discussed it with Cabinet and as a whole of government, but Mr Eslake’s report has a number of different recommendations in it, all of which I imagine, the Treasurer will address in his response.
Mr SWAIN – We had in‑principle conversations with the Treasurer about that, the need to give advice. We haven’t got down to the level of recommendation by recommendation where we’d go in that advice at this point.
Mr BAYLEY – Minister, do you see the benefit of it or do you see it as a real option to be increasing the royalties that companies like mining companies pay? $151 million from Savage River, that’s a lot of money.
Mr STREET – I’m not going to give it definitive opinion sitting here at the table today, but I can acknowledge the difference between what you’re talking about in terms of Mr Eslake’s recommendations around car registrations and things that affect Tasmanians directly versus some other recommendations that he made as well.
Mr BAYLEY – That sounds positive. We urge you to have a look at that. Mining revenues and royalties are clearly an option going forward.
