Leader of the Opposition, Lia Finocchiaro, says the Gunner Government is trashing the
Territory as an attractive place to do business after propping up the world’s worst mining
tax, which puts $5.5 billion in mining sector projects in jeopardy.
“Amendments to the Mineral Royalty Amendment Bill couldn’t have come at a worse time
for our mining industry. The Gunner Government is doing everything in its power to prevent
investment in the NT. This legislation has significantly diminished the view that the Territory
is open for business.
“Labor’s amendment has changed what can be deducted from the tax that mining
companies pay under the Gunner Government’s Hybrid Mining tax. This effectively raises
the rate of tax and beefs up the confusion and uncertainty of Labor’s convoluted tax.
“The Gunner Government’s own Territory Economic Reconstruction Commission (TERC) said
that the Territory should be the ‘easiest place’ in Australia to do business, but Labor is
creating an environment that does the opposite.
“The TERC identified over $5.5 billion in mining sector projects in the pipeline, each of which
will be put in jeopardy by this Bill. A new major mine has not opened in the Territory since 2005. It’s little wonder, given the Gunner Labor Government’s history in dealing with private
business, and the mining sector in particular.
“This decision follows a long line of legislative changes by the government to move the goal
posts while the game is being played, including changes to the Planning Act to thwart an
ongoing Supreme Court action and tweaks to the Liquor Act which granted the Director of
Licensing the power to make decisions – without consultation or giving reasons – which of
course impacted the Dan Murphy’s development.
“Every mining company, from large international firms to small exploration companies, pays
close attention to sovereign risk. The greater the risk of a government changing the rules,
the more difficult it will be for a company to convince investors, banks and boards of
directors to back a project in the Territory—no matter how attractive the resource.
“We’d like to know what the hastily appointed Investment Attraction Commissioner thinks
of this law and the damage it’s doing to our mining industry and attracting investment,” said
Ms Finocchiaro