Distraction by the ‘inconvienient truth’

One may be easily distracted by the inconvenient truth that financial predictions of Australia’s treasurer Wayne Swan exist in the ether between tenuous and totally unbelievable. 

Whilst Wayne is worrying about the republic, regional Australians are concerned about the 

$573 million that is earmarked as coming from the mining tax to be spent on Regional Development Australia Fund projects which include vital community infrastructure in remote areas. 

Before Mr Swan gets too exercised about the Queen, he should explain how he negotiated a deal that got him the support of Mr Windsor and Mr Oakeshott, but relied on the financial genius of his negotiated mining tax. 

Mr Oakeshott and Mr Windsor should be asking Mr Swan if their deal still sticks, and if it does where is the money coming from?

When I think of the mining tax deal brokered by the major mining companies and Gillard, it reminds me of a senior business person reflecting on a deal that had just been completed by his successor. He stated if the deal was that you stood on the table for everyone to laugh at you, then that was a deal he could have done years ago. 

This roughly translates from his clinical observations that the senior negotiating party had done a very bad deal.

A gaping $573 million black hole in funding for regional Australians has been left by zero mining tax revenue to date or in the foreseeable future.

In Friday’s Australian Financial Review, Fortescue Metals Group finance chief Stephen Pearce said it was unlikely iron ore prices would get high enough for any minerals resource rent tax to be paid this year.

Barnaby Joyce Shadow minister for Regional Development, Local Government and Water and leader of The Nationals in the senate


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