David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

My question is to the Assistant Treasurer, Senator Sinodinos. Can the Assistant Treasurer advise the Senate about the costs imposed on jobs, business and the economy by the mining tax? What is the government doing to restore confidence and certainty in the mining sector?

Arthur Sinodinos (NSW, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

I thank the honourable senator for his question. The mining tax was an unnecessary and poorly designed tax that burdened the industry with excessive compliance costs. It damaged international investor confidence in Australia, particularly in our resources and energy sector, and it made the industry less internationally competitive. The whole point of the tax was to extract economic rents. It did nothing of the kind. Atlas Iron recently outlined to the Senate economics committee the impact of the mining tax on its operation, noting:

… the introduction of the MRRT substantially delayed the process of marketing our Ridley magnetite project to foreign investors as it created a further layer of cost and uncertainty over such projects which are already considered risky by virtue of their capital requirement.

It was adding to the risk of these major projects. The MRRT added extra complexity administratively—new administrative and compliance burdens.

Opposition Senators:

Opposition senators interjecting—

Arthur Sinodinos (NSW, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

You don't like to hear this, do you? You don't like to hear the consequences of what you did to one of the big industries of Australia, one of the industries of the future. The mining tax has already cost over $50 million in administration but raised only $400 million. How is that for a return on the industry? Treasury confirmed in the recent Senate economics committee hearing that far more companies need to comply with the tax than have actually paid the tax to date. Approximately 235 companies have registered for the tax and 65 more are due to register should the repeal of the tax not proceed; however, fewer than 20 companies actually incurred a MRRT liability in 2012-13.

If we want a vibrant energy and resources sector, we have to repeal the MRRT and we have to repeal the carbon tax. The opportunity we have over the next few days is to complete that task.

David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the Assistant Treasurer advise the Senate of both the extent and the cost to the budget of the former Labor government spending the anticipated proceeds of the mining tax before they were actually achieved?

Arthur Sinodinos (NSW, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

The mining tax, as I mentioned before, has raised very little revenue. It began life as a $49.5 billion resources superprofits tax and then the people opposite subcontracted out their tax policy. Senator Cameron talks about figures in the mining industry. It was the Labor government that subcontracted out its mining tax policy to BHP, Rio and Xstrata. It then came up with a $26.5 billion estimate that then became $4 billion and to date it has raised $400 million. Off the back of that you promised over the forward estimates $16.7 billion of spending. We have raised $400 million but there is $16.7 billion of spending on schoolkids bonuses, low-income super, small business write-offs, the superannuation guarantee, loss carry-back and the income support bonus. It is spending we cannot afford. (Time expired)

David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Minister, has the coalition had a consistent position on the dangers—

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order! The questioner is entitled to be heard in silence.

David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Minister, has the coalition had a consistent position on the dangers and financial irresponsibility of promising to spend money which will not be raised?

Arthur Sinodinos (NSW, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

I am happy to report that the coalition have had a consistent position. From the very beginning, we saw the damage that that mining tax was going to do to one of the sectors on which we are building Australia's future. We made it clear at the time: we would not support the mining tax or the spending of the former government that was promised off the back of that tax. We thought it was irresponsible to first slug a major industry in that way and then promise all this spending on the back of that. What a cruel hoax on the schoolkids of Australia, low-income Australians and small business, to promise all this spending off the back of this ever-receding tax. The now Prime Minister, in his budget reply speech in May, outlined that the coalition would not continue with the measures that were going to be funded by the mining tax, because the mining tax was not raising revenue. You were telling the schoolkids of Australia: 'It's okay to borrow to pay yourself a bonus.' We could not afford it. We were not going to go ahead with it. And that is our stance after the election.

Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

Got to keep those political donations coming in from the mining companies!

Senator Heffernan interjecting—

Do the Nationals let you open your mouth?

John Hogg (President) Share this | Link to this | Hansard source

Order! When there is silence next to you, we will proceed, Senator McLucas.

Senator Heffernan interjecting—

John Faulkner (NSW, Australian Labor Party) Share this | Link to this | Hansard source

He's got feelings, you know!

John Hogg (President) Share this | Link to this | Hansard source

There are still people interjecting across the chamber, which is disorderly. I have reminded senators before. I will not proceed until there is silence. You are entitled to be heard in silence, Senator McLucas.

Senator Heffernan interjecting—

John Faulkner (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Welcome home. You're here today, are you? Thanks for popping in!

John Hogg (President) Share this | Link to this | Hansard source

If senators down the other end of the chamber wish to conduct a conversation, I advise them to go outside the chamber and do so. I am waiting to call Senator McLucas.