Canberra should tell the truth: Forrest

FORTESCUE Metals Group chief executive Andrew Forrest has slammed the proposed new resources super-profit tax as an attempt at nationalising the mining industry, at a heated media conference in Perth this morning.

“We wouldn’t all be here if Canberra had told the truth,” he told journalists.
“I want to appeal to my fellow Australians in Sydney and Melbourne, and all of those who have been listening to the prime minister talk about their working families as though somehow, my hardworking wife and I are a pair of slackers.”
Forrest said describing the move as a super-profits tax is incorrect and the proposal will quickly disappear if Canberra tells the truth and correctly describes the tax as “nationalisation”.
Forrest was joined by his FMG colleague Russell Scrimshaw, directors from Gindalbie Metals, Iron Ore Holdings, BC Iron, FerrAus, Swan Gold and Brockman Resources.
The other mining executives at the meeting shared the sentiments of the FMG boss.
BC Iron chairman Tony Kiernan said the proposed RSPT is an abuse of power on the government’s part.
“What we’ve got here, with respect to the government, is a substantial abuse of trust,” he said.
“We’ve made our decisions based upon a taxation regime.”
BC managing director Mike Young described it as overkill.
“Look, this tax reminds me of someone that wants to get rid of termites and to do so, they blow up their entire house,” he said.
“The termites are gone – so is the house, insulation and everything.”
Swan Gold’s Michael Kiernan said his group of companies would be looking to Indonesia to invest, as a small developer like his company will not be able to get funding to get projects up and running in Australia.
“Indonesia has a very receptive government that’s changed their mining laws,” he said.
“Their taxation regime is average – it’s not 57 per cent.”
Unlike, BC’s Nullagine project, Brockman’s flagship Marillana iron ore project is yet to secure funding.
“One of the key things for us during this year of uncertainty now created by this tax is the raising of sufficient capital to start construction of the project,” Brockman MD Wayne Richards said.
The group is also concerned about the ramifications for their employees and working families.
Young said he’d started BC 3.5 years ago with himself as the only employee, and now has 24 workers.
“That’s a great thing to do, giving 24 people jobs,” he said.
“It’s a great feeling, providing opportunity for people and I think this tax takes that opportunity away from a lot of companies.
“Please understand, it’s not all about me, it’s not all about our balance sheets and we need to appreciate that this affects every working Australian,” Tony Kiernan added.
FerrAus MD Mike Amundsen said he’d had calls from concerned shareholders after billions was wiped off Australian mining stocks in the past few days.
“All Australians are hurting now so I can’t imagine what it’s going to mean for the future,” he said.
The group urged Canberra to reconsider the RSPT, as the mining industry is what got Australia through the global financial crisis.
“We need to sit back and look at this in a very clear and transparent way and hear our pleas in Canberra so we can move forward in a very clear and internationally competitive market,” FMG executive director Russell Scrimshaw said.
“We need to protect what’s working well.”

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