SUBJECTS: Resource Super Profits Tax and open letter from economists on RSPT, Julie Bishop gaffe on Australian passports
MARIUS BENSON:
Chris Bowen, on the mining super tax, the negotiations are apparently going on, but in public it's pretty much abuse, with the Treasurer calling miners liars or ignorant. Is there any progress being made in private?
CHRIS BOWEN:
Well, the Treasurer was dealing with claims, some particular claims, and pointing out the errors in those claims on one particular side of the mining debate. We've said that there is a genuine consultation process going on. That's going on with the consultation panel of the Treasury and I wouldn't be commenting on any particular part of that, other than to say what we've said in the past about there being a genuine consultation process continues to be the case.
BENSON:
The Government has commented on particular parts. They say, for example, some things are not negotiable: the 40 per cent rate, not negotiable; the six per cent cut-in point when a profit becomes a super profit, not negotiable. That's known.
BOWEN:
Well, we've certainly said the rate is the right rate and we've said we'll negotiate on the implementation details, and that's what we're doing and that's a genuine process.
Of course, there was a lot of consultation as part of the independent tax review. The independent tax review itself did a lot of consultation, but of course any major tax change – and when you look back at all the major tax changes over the last 30 or 40 years there's been significant consultation about the implementation – this one is no different.
BENSON:
One particular aspect of the tax which has been criticised is the retrospectivity of it, that it applies to existing mining projects. John Ralph, for example – a man with great standing in banking circles, mining, he's advised governments – points to that as identifying Australia as a sovereign risk. Is retrospectivity negotiable?
BOWEN:
Well, the first thing I'd say is that a number of very eminent economists point out that the current arrangements of royalties are actually a substantial threat to sovereign risk when you consider that the royalties rate doesn't take into account profits made and therefore the risk is greater.
But in relation to existing projects, we've made it clear that if we didn't apply this to existing projects, there could be substantial distortionary effects in terms of distorting decisions. But nevertheless, we're engaged in a consultation process about transition, about implementation details, and that process is ongoing.
BENSON:
But from what you just said it will apply to existing projects or it would be distorted.
BOWEN:
Well, we are saying that there's a substantial consultation process going on about implementation and transition, and that's what the process will go through, Marius.
BENSON:
But can you say whether that retrospectivity is negotiable?
BOWEN:
Marius, I'm not going to get into the various aspects of the consultation that are going on. That would be imprudent. I'm not aware as to what the consultation panel will recommend but the Government will need to consider those elements.
BENSON:
Okay, let me ask you about something the Government is enthusiastic about talking about, which is Julie Bishop, who yesterday made a statement saying Australian intelligence agencies used forged passports, then later said that's not what she said.
BOWEN:
Well, this is very concerning, Marius. There's a longstanding national security convention that both sides of politics have always abided by that we do not speculate on the operation of our intelligence agencies. Now, Ms Bishop's decision yesterday was very unfortunate.
It's frankly part of a pattern of behaviour which shows what a risky Opposition this is. They are prepared to put politics in front of good public policy. They are prepared to say or do anything, and frankly it shows that Ms Bishop is unfit for the office of Foreign Minister, and what a risk that presents for the Australian people.
BENSON:
Well, that risky theme is one the Government's been hammering about the Opposition.
But aren't you yourself putting politics ahead of anything else? If you were genuinely concerned about the damage Julie Bishop's remarks made to Australia, wouldn't you not be fanning the flames and drawing attention to them?
BOWEN:
Well, Ms Bishop made the comments and they were running substantially internationally. We're not the ones drawing attention to them but we need to deal with them. Now, Ms Bishop, in relation to the decision on Israel, and the Opposition more generally, have decided to put politics in front of national interest, and yesterday, by commenting on the operation of Australia's security agencies, intelligence agencies, she did the same again.
Now, I think Mr Abbott needs to deal with this. He needs to come out today and say he supports the longstanding convention on national security matters that's been adopted by his side of politics and ours for as long as anybody can remember. He must also rebuke Ms Bishop and make it very clear that her behaviour yesterday was unacceptable.
BENSON:
Chris Bowen, thank you very much.
BOWEN:
Nice to talk to you, Marius.