Legislative Council Fifty-Second Parliament, First Session (52-1) 52 1 Parliament of South Australia Legislative Council published Question Time Mining Super Tax MINING SUPER TAX The Hon. T.J. STEPHENS Legislative Council MINING SUPER TAX The Hon. T.J. STEPHENS (16:16): I seek leave to make a brief explanation before asking the Minister for Mineral Resources Development a question about the impact of the new mining super tax on Aboriginal communities. Leave granted. The Hon. T.J. STEPHENS Legislative Council The Hon. T.J. STEPHENS: Recently concerns have been raised by members of Aboriginal communities that they will be adversely affected by the new mining super tax proposed by the federal government. Remote communities rely heavily on agreements with resource companies for both employment and infrastructure. This massive tax grab could have the effect of forcing mining companies to scale back or shelve mining projects. It was reported in The Australian today that Rio Tinto is shelving an expansion in Western Australia due to uncertainty created by this super tax. In 2008 Premier Rann declared that more had to be done for Aboriginal communities to benefit from this state's mining industry. My question to the minister is: will he guarantee that mining jobs and opportunities for Aboriginal people at sites such as Prominent Hill will not be affected by Labor's massive tax grab? The Hon. P. HOLLOWAY Legislative Council Minister for Mineral Resources Development Minister for Urban Development and Planning Minister for Industrial Relations Minister Assisting the Premier in Public Sector Management The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Industrial Relations, Minister Assisting the Premier in Public Sector Management) (16:17): Given that the proposals for mining taxation are commonwealth matters, it is rather hard for me to give any guarantee on anything it might propose. Over eight years the Rann government has been unstinting in its efforts to encourage the development of mines in remote areas, particularly on Aboriginal lands within this state, and to encourage the employment of Aboriginal people within those mines. We have been particularly successful with mines such as Prominent Hill and with the new mine just opened by the Premier earlier this year, the Jacinth Ambrosia mineral sand mines in the far west of the state, which is already trending up towards 20 per cent indigenous employment. This government has done an enormous amount, and will continue to do so, to promote not only the mining industry but also the benefits for Aboriginal people within it. PIRSA and my department have worked closely with Aboriginal communities, in particular the APY lands, to encourage and awaken within those communities the opportunities that mining development can provide. We would be concerned about any policies that would have an impact on that. In relation to the proposals of the commonwealth government, our advice to all companies in the mining area is to look very closely, as we are doing, at what the impacts of that tax might be. I have spoken to a number of companies about that to see what the impact might be. It is particularly important that the federal government clarify the situation as quickly as possible, as there are some unknowns as to how this particular form of taxation may operate. While this government is committed to the mining industry, earlier this week the government through its PACE program handed out another $1.3 million or thereabouts of grants to encourage mining in this state. The Rann government remains committed to the mining industry in our state and we will do whatever we can. Our advice to mining companies is to examine closely the proposals of the federal government and to provide that information to us, and if there are issues that impact on this state, we will certainly take up such issues with the commonwealth government. The important thing at this stage is that we gather the information and, as I say, I would certainly encourage— The Hon. D.W. Ridgway interjecting: The Hon. P. HOLLOWAY Legislative Council The Hon. P. HOLLOWAY: —the federal government to clarify some of those issues because I know, in talking to many mining people (including at the dinner last night, which the honourable member wants to refer to), that there is significant uncertainty about particular parts of this package as to what it actually means. I think it is important that that be clarified as soon as possible.