Question Time

MINING ROYALTIES

Mrs REDMOND (Heysen—Leader of the Opposition) (15:16): My question is again to the Treasurer. What revised royalty rate will be charged to South Australian mining companies, including BHP Billiton, under the government's changes to the royalty rate, and has the Treasurer informed BHP or any other mining companies of this new rate?

According to the explanation given by the Treasurer on 3 May, the commonwealth government is going to rebate to mining companies the amount of royalties paid to the states. Our royalties in South Australia are at 3.5 per cent. The Treasurer, as I understand his explanation, needs to demonstrate to the federal government his bona fides in claiming that the government was in the process of increasing that rate in order to justify any higher rebate.

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Federal/State Relations, Minister for Defence Industries) (15:17): I am really just having to repeat the first answer. The federal Treasurer and I have now had two conversations on this subject. The Treasurer was made aware last Sunday—actually a little earlier than last Sunday—that we had been reviewing our royalties in line with royalty rates in other states and where we may or may not choose as a cabinet to pitch those royalties, because we are the lowest, or one of the lowest, in the country. I can tell you someone else I was consulting with on royalties: your Liberal colleague in Western Australia, Colin Barnett. I must say, I quite like Colin Barnett; he is a very nice person.

The Hon. J.D. Hill: So do West Australians.

The Hon. K.O. FOLEY: Yes, they do.

Members interjecting:

The Hon. K.O. FOLEY: What does that say about you lot? What does it say about them?

Members interjecting:

The Hon. K.O. FOLEY: Colin and I have had a couple of good chats about royalties, etc., where we go into the future.

The Hon. J.D. Hill: He is the Treasurer now, too, isn't he?

The Hon. K.O. FOLEY: He is the Treasurer now. The point is that we will have no difficulty in demonstrating to the commonwealth what our intentions were and I am confident the commonwealth will accept that. But that is a matter between us—

Mr Williams: What are you intending?

The Hon. K.O. FOLEY: Well, I'm going to tell you now that some things we have not yet decided because the budget is still four months away.

Mr Williams interjecting:

The Hon. K.O. FOLEY: The budget is four months away.

Members interjecting:

The Hon. K.O. FOLEY: There was an election in March—

Members interjecting:

The Hon. K.O. FOLEY: Madam Chair, are they suggesting to me they would have come in and delivered a May budget?

Members interjecting:

The SPEAKER: Order! I remind the Treasurer that we are now 21 minutes into question time and we have had two questions answered.

The Hon. K.O. FOLEY: Madam Chair, I am giving responses in a controlled, calm and orderly measure and I am happy to continue to do that. I will not revert to type because of the behaviour of members opposite. What I can say again is that, whatever rebate we finally strike, and if it is accepted by the commonwealth, it is no additional charge to the mining company because they get a 100 per cent rebate.

The SPEAKER: Thank you, Treasurer, and you are behaving very well and I thank you for that.