Pass proper mining tax, say Greens

9 Feb 2012, 12:15 pm   -   Source: AAP
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Greens MP Adam Bandt says the government should raise its proposed mining tax to 40 per cent to better protect jobs.

The Australian Greens have again urged federal Labor to increase its proposed mining tax, to better protect industries struggling under the weight of the high Australian dollar.

Legislation for the minerals resource rent tax (MRRT) still needs to pass the upper house so that it can take effect from the middle of the year.

The proposed 30 per cent tax, confined to the extraordinary profits of iron ore and coal companies, was inadequate, Greens lower house MP Adam Bandt told reporters in Canberra on Thursday.

"One of the reasons proposed for the original mining tax was to ease the pressure on the Australian dollar, so that the other sectors of the economy that are doing it tough like manufacturing have a better chance," he said.

Former Labor leader Kevin Rudd's original Resources Super Profits Tax rate of 40 per cent was reduced to the proposed MRRT after Prime Minister Julia Gillard struck a deal with the nation's three biggest miners, BHP Billiton, Xstrata and Rio Tinto.

Mr Bandt said the current plan was a dud deal for workers who were at risk of losing their jobs.

These included employees at aluminium group Alcoa, which is examining the viability of its smelter at Geelong, Victoria, because of low metal prices, a high Australian dollar and input costs, he added.

"If the government wanted to do something to protect the million workers in Australia engaged in manufacturing in places like Alcoa, it should pass a proper mining tax and it should establish a sovereign wealth fund," Mr Bandt said.

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