SUBJECTS: Agreement on tax reform, superannuation reforms, Prime Minister's leadership, Coalition position on mining taxes
MARIUS BENSON:
Chris Bowen, can I ask you about one aspect of the new tax which hasn't been fully explained yet; that is, the question of retrospectivity? The miners were very concerned that any new tax should not apply to existing projects which they saw as retrospectivity. Will it?
CHRIS BOWEN:
Well the Government's position is that we have responded to the mining industry's concern by changing the valuation model, the valuation method that applies to this tax; and that's sensible and we've taken that on board.
It applies across the board, and that will continue to be the case; but we've listened to their concerns about the valuation model on existing resources.
BENSON:
So, is there a simple 'yes or no' answer? Will it apply to existing projects?
BOWEN:
Well it does apply to existing projects, and we've listened to their concerns about how things are valued as part of that process.
BENSON:
So it applies to existing projects, but the concerns about it applying to existing projects, that the miners felt, have been addressed?
BOWEN:
Well, the mining industry – and certainly the mining industry that we've been in discussion with, those representatives – have indicated that they feel that this is an appropriate way forward; absolutely.
BENSON:
Okay. It's been a pretty hectic week of negotiations. Why did things go so much better in talking to the miners under Julia Gillard than under Kevin Rudd?
BOWEN:
Well I think that on the day she became Prime Minister, Julia Gillard showed real leadership by saying she wanted to sit down and talk this through in a very meaningful way; and the mining industry responded appropriately. That's what good leadership is about and the Prime Minister has shown that.
BENSON:
And by implication, real leadership and good leadership was not shown by Kevin Rudd, from what you just said?
BOWEN:
No I don't accept that, but I'm simply making the point that the Prime Minister has, in a very meaningful sense, sat down with the mining industry and talked through their concerns.
As a result, Australians now have a fair share of the mineral wealth under our ground; we are now able to boost superannuation, cut corporate tax and have an infrastructure fund. All the objectives that the Government set out to achieve have been achieved in a way that the mining industry feels is sustainable.
BENSON:
Well, if you could do that in a week of negotiations, why was it preceded by two months of a very destructive bun-fight with the industry?
BOWEN:
Well, look a lot of things were said on both sides of the argument; and nobody ever likes paying more tax. Both sides of the argument have shown goodwill over the recent period. As a result, Australia is the better because we have a fair tax, a more equitable tax, a more efficient tax, than we had before the government embarked on this project.
Australians will have a better superannuation system and the mining industry feels that this is a sustainable way forward.
BENSON:
One criticism of the result is that it's a cave-in; that you said, for example, the 40 per cent rate of the tax was non-negotiable and you've cut that to 30 per cent. That this is a cave-in, this shows a Government that if you push 'em hard enough – you saw it with the ETS, you've seen it again now – they'll cave-in.
BOWEN:
No, I don't accept that. Reform is never easy.
We set out to reform the taxation of Australia's mineral wealth; we've done that. We set out to boost Australia's superannuation with the proceeds; we've done that. We set out to cut the corporate tax rate; we've done that by less than we originally set-out, but we're nevertheless cutting corporate tax. We set out to have an infrastructure fund funded by this and we've done that.
So compromise is sometimes the mark of good leadership, and I think that's what the Prime Minister and Deputy Prime Minister have shown.
BENSON:
And the Prime Minister was asked about the timing of an election off this; because a lot of people were saying this was clearing the decks for an election. She said, 'there's still some governing to do'.
BOWEN:
Well that's right. I think there's a lot of speculation out there, a lot of that is ill-informed. The Prime Minister is getting on with the job. We've said, very clearly, the election will be soon; but nevertheless we need to remain focused on governing the nation as well, and that's what today's announcement is all about.
BENSON:
So the near universal expectation remains an August election?
BOWEN:
Well, there are plenty of speculators and commentators paid to talk about that. I'm paid to be a Government Minister and not to speculate on election dates.
BENSON:
Do you think this result makes an election easier for Labor to campaign, when you won't be facing a $100 million dollar ad campaign from the mining industry – I guess that's a self-answering question?
BOWEN:
Well, what it does is focus on other issues. It allows the community to focus on other issues like health, like WorkChoices, like the economy.
Now of course Tony Abbott is in a position where he says, 'the mining industry shouldn't pay a dollar more tax'. He says, 'they already pay too much tax', but significant elements of the mining industry themselves, have accepted that they need to pay more tax and have worked cooperatively with the Government. So I think Tony Abbott is in a difficult position here.
BENSON:
Chris Bowen, thank you very much.
BOWEN:
Nice to talk to you Marius.