"Super" Mining Tax

[fish]

Heard on the ABC tonight that the mining companies are spending up to $100million on their anti-tax advertising campaign.

Wonder where that money is coming from?

More like I wonder where Labour are getting their money from.....

Avoiding the question southee? Kerry would tear you to shreds!

Also seen on the news tonight was a mining executive flying into Canberra in the company jet - these guys are frigging loaded!

Where did they get the money for that?

[southee]

Anyone see Kerry O'Brien run rings around Wayne Swan tonight before chewing him up and spitting him out? Classic.

Just watched it online.....fantastic!!!

Kerry comes out with some good points

One of the biggest rorts a government has done

[Q.]

One of the biggest rorts a government has done

After 'children overboard' and 'Iraqi WMDs'? Hardly.

[Gozu]

Avoiding the question southee? Kerry would tear you to shreds!

Also seen on the news tonight was a mining executive flying into Canberra in the company jet - these guys are frigging loaded!

Where did they get the money for that?

Actually fish I think that was Clive Palmer's private jet. Why do you wanna take that little Billionaire's private jet away for, I mean it's un-Australian!

[Gozu]

Just watched it online.....fantastic!!!

Kerry comes out with some good points

One of the biggest rorts a government has done

As Gillard pointed out with the arse kicking she gave Kerry on their ABC tonight it was about needing to create work to stimulate the economy and the fact there has been the odd rort here and there by some dodgy contractors (just like the insulation scheme) doesn't mean the Government is at fault.

[Psyber]

As Gillard pointed out with the arse kicking she gave Kerry on their ABC tonight it was about needing to create work to stimulate the economy and the fact there has been the odd rort here and there by some dodgy contractors (just like the insulation scheme) doesn't mean the Government is at fault.

Shouldn't any competent Minister assume there will be attempts to "rort" and set up safeguards?
Especially so in things like the insulation scheme where lives are potentially at risk, not just money where the waste of which can be offset by new taxes.

[Gozu]

Shouldn't any competent Minister assume there will be attempts to "rort" and set up safeguards?
Especially so in things like the insulation scheme where lives are potentially at risk, not just money where the waste of which can be offset by new taxes.

Psyber, they needed to get the stimulus spending out there ASAP. Like Gillard said last night if they waited for the States to set up/refine all their safeguards it would've taken too long. Yes, there will be rorts there will always be dodgy contractors but the most important thing was creating and retaining jobs. On the insulation scheme I tuned out of that 'debate' a long time ago but I've read a few times that not only did all the rorts/dodgy stuff occur previously but supposedly it was even more dangerous prior to the influx of stimulus money. Of course that wasn't "news" before.

[Gozu]

Have a read Psyber, "Removing stimulus now would "stall the economy":

The latest national accounts show that despite talk of a mining boom and Australia leading the developed world, if it weren't for government stimulus spending we would be going backwards.

"In this limited arithmetic sense increased government spending has accounted for more than all of the growth in GDP," said BT Group economist Chris Caton. "It underscores the point that stimulus has kept the economy afloat."

http://petermartin.blogspot.com/2010/06 ... stall.html

[Psyber]

Gozu,
I fail to be convinced the "stimulus package" actually made much difference.
[Or that there would have even been one had Paul Keating been the current PM.]
It didn't look much different from 1987's 40% slump in share prices to me.
It resembles the Y2K, and the global warming, hysteria - many of the faithful rushing into print clamouring about the "rightness" of the faith didn't prove much in those cases either...

[Gozu]

I fail to be convinced the "stimulus package" actually made much difference.

That mindset is the Liberal Party's problem right there.

[fish]

Saw on the news tonight that resources share prices have recovered pretty well to where they were before this tax was announced!

So much for all the hoopla...

[purch]

Saw on the news tonight that resources share prices have recovered pretty well to where they were before this tax was announced!

So much for all the hoopla...

Yeah, because the Aussie dollar has fallen more than double the Canadian dollar over the same period...umm...derrrr

[Psyber]

I fail to be convinced the "stimulus package" actually made much difference.

That mindset is the Liberal Party's problem right there.

As I said, Paul Keating didn't see the need for one in 1987...

[Gozu]

"Don't feel sorry for Xstrata":

The media and the opposition would have you believe the fifth horseman of the Apocalypse, looking very much like Kevin Rudd riding on his RSPT, had gone into Mt Isa and wreaked havoc, in the wake of Xstrata’s decision to suspend its Wandoan coal project and an extension to its Ernest Henry copper mine.

It’s garbage, and the cleverly tax-avoiding Switzerland-based empire has played this game before.

And as always when it comes to the mining industry, look at what they do, not what they say. Remember that huge $4.85 billion bid by the coal industry for QR’s coal lines last week? That’s the one where the bidders specifically said they were prepared to pay a premium — using borrowed money — for the infrastructure because they were so confident of ‘future growth’ in coal exports.

Who’s leading that bid? Who has such confidence in growth in coal exports that they’re prepared, even in the light of the RSPT, to pay over the odds for infrastructure? BHP and Xstrata.

Again, look at what these people do and not what they say, because when they open their mouths they lie.

Nothing to do with the RSPT. How do we know? Well, Xstrata shut down a major copper operation in Canada back at the start of the year. Since then, the price of copper has fallen further.

This isn’t the first time that Xstrata has made these sorts of claims, though.

As one former coal industry insider told Crikey: “this is a total con”. Threatening to halt or delay projects was, they said, a common industry tactic, and was frequently used during the campaign against the CPRS. “This was all just tactical bullying and everyone in the industry knew that at the time.”

And in the mainstream media and lazy journalists, they have a willing ally.

http://www.crikey.com.au/2010/06/04/wha ... the-media/

[fish]

Saw on the news tonight that resources share prices have recovered pretty well to where they were before this tax was announced!

So much for all the hoopla...

Yeah, because the Aussie dollar has fallen more than double the Canadian dollar over the same period...umm...derrrr

I'm not talking about maple syrup shares ( ), but real Australian mining company shares bought by real investors with real money! Their investment has shown that they have confidence in the profitability of the resource sector despite the scare campaign around the proposed tax.

[Psyber]

I'm not talking about maple syrup shares ( ), but real Australian mining company shares bought by real investors with real money! Their investment has shown that they have confidence in the profitability of the resource sector despite the scare campaign around the proposed tax.

I haven't sold my resource shares because they had already dropped by the time I found out the tax was on the horizon. Had I known in advance I would have sold them for sure.
At this stage one might consider buying more at the reduced price, gambling on the chance the Rudd government will fall over and they will then recover...
I'm not doing that either though at this stage - I'm relying on my fairly balanced portfolio averaging itself out regardless of the stupid actions of any ruling party....

I am looking at overseas investments, cautiously, now to allow for the local national economy suffering while the economies that have collapsed already start to recover.
Overseas resource stocks may be about to show some gains.....

[mighty_tiger_79]

should be some good buys in greece

[Psyber]

should be some good buys in greece

Yes, you just need some idea of when and if they will recover!
I suspect other parts of Europe dragged down by the Greek crisis may be a safer bet.

[Gozu]

"Yes, I exaggerated mining tax threat: Palmer":

One of the most vocal critics of the Rudd government’s proposed resource profits tax has admitted he exaggerated the possible consequences.

Asked if he had exaggerated the threat, Mr Palmer told tonight’s Four Corners program: ‘‘Probably. It should’ve been, you know, slowing them down, waiting to see what happens.’’

http://www.smh.com.au/business/yes-i-ex ... -xpjo.html

That was a good episode of 4 Corners too exposing how absurd the squealing has been from both the big multi-national mining companies and the ridiculous Tony Abbott. Former Liberal Party leader John Hewson admitted Abbott doesn't care about policy and thinks politics is just one big game. You don't say!

[purch]

Well I'm off overseas in the morning for a month long project generation effort. We see no reason wasting $$ looking for opportunities in Australia at the moment.

Thanks for the trip Mr Rudd

See ya in a month!