HOST:
I'm joined by the Assistant Treasurer David Bradbury. David Bradbury, good morning.
BRADBURY:
Good morning, Marius.
HOST:
Now, without going to extremes of talking about all boom or all bust, is an accurate description of the current situation of resources in Australia that we are now on a downward gradient?
BRADBURY:
Look, I think it's important to understand that there have always been three dimensions to this mining boom. There has been the boom in prices, and it is true to say that we have seen prices starting to come off the higher levels that they've been on, but there's also the boom in investment and then the boom in production that will follow. Now, for those aspects of the boom continue to be very strong and augur well for the Australian economy moving forward. Let's just look at this question of investment, and since 2007 we've seen almost a trillion dollars of capital investment in the resources sector. Now we saw just last week in some of the capex figures that were released that that mining investment pipeline continues to be strong, and what we do know is that of that committed investment, somewhere in the order of around $260 billion worth of investment committed to resource projects is already at advanced stages. Obviously, once this investment works its way through the system, then there will be the production benefits that flow from that, and we certainly continue to believe that the factors that are driving demand for our resources in our region, they are not short-term or cyclical considerations, they are the product of structural change that is happening in places like China where industrialisation is occurring. Somewhere in the order of 20 million each year in China are moving from rural parts of China into cities and obviously demand for resources and economic activity flows from that.
HOST:
Mr Bradbury I was speaking to Ian MacFarlane, the Opposition resources spokesman, half an hour ago on Newsradio and he says there has been an investment boom, the investment is strong now but because, substantially because of tax decisions taken by your Government, three to four years from now that investment will have tapered off, will have gone. Is that the case? Is the pipeline going to be dry in three or four years?
BRADBURY:
Absolute rubbish. Now ask Ian MacFarlane if he's even had a look at Fortescue's statement, or is this another incident like Mr Abbott going on the 7:30 Report and telling people that the Olympic Dam decision was all about the carbon price and the Minerals Resource Rent Tax, when he hadn't even read the one-page statement. Well I can understand why this is a little more taxing because Fortescue's statement was one and a half pages, but that's no excuse for people like Mr MacFarlane either not reading it or deliberately misleading. Have a look at the heading of that statement: 'Fortescue takes decisive action on iron ore market volatility'. Show me a paragraph within the statement – and let's bear in mind these are not reckless political statements being made in the course of people pursuing their own political interests, these are market disclosure documents that the company, required under law in order to not mislead and to properly inform investors are required to provide to the stock exchange – show me one sentence of paragraph in that statement that supports this reckless and irresponsible scare campaign that has no bounds. We've seen it hit all sorts of ridiculous lows. Perhaps this is not the depths of the Olympic Dam debacle that we saw from Mr Abbott but frankly the fraudulence of these claims really needs to be exposed.
HOST:
David Bradbury can I take you to politics directly because the Sydney Morning Herald is reporting today that the Labor Party is preparing at some levels for an early election. This is largely reported as just sensible precautions a year out. Is there any chance of Labor going early?
BRADBURY:
That is a matter for the Prime Minister, and as someone out there on the front line I'm ready to go into battle whenever the Prime Minister gives the order. But let's be clear about this. We have a commitment to serve the full term that we've said very explicitly. I think that we are beginning to see some of the electoral ground shifting. I think there is a lot more focus shifting onto Mr Abbott, his complete lack of policy depth, the lack of policy alternatives. I think that most Australians are beginning to believe that Mr Abbott's comments, where the answer to every question is 'carbon tax' and 'mining tax', are beginning to sound very shrill. And on the other side of the ledger you've got a Government that is now setting out a platform and a program for the future, education, disability insurance scheme, dental health, building a stronger economy and a stronger social safety net.
HOST:
So a year away is a sensible expectation?
BRADBURY:
Look, as I said I think it's sensible to be planning for all contingencies but this is a matter for the Prime Minister, I think there should be a strong expectation that we go well into the New Year, but of course we will be making all of the necessary preparations as I think everybody would expect we would.
HOST:
David Bradbury, thank you very much.
BRADBURY:
Thanks very much Marius.