Rinehart dead wrong on wages: Gillard

5 Sep 2012, 5:35 pm   -   Source: AAP
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Gina Rinehart is wrong about the need for a special economic zone in Australia's north and a lower minimum wage, Prime Minister Julia Gillard says.

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Prime Minister Julia Gillard has flatly dismissed Gina Rinehart's call for a special economic zone in Australia's north.

Ms Gillard also took a swipe at the iron ore magnate for her recent column in Australian Resources and Investment magazine, in which the billionaire suggested reducing the minimum wage.

Speaking with reporters in Perth on Wednesday, Ms Gillard was asked if she agreed the nation's north needed to be classed as a distinct economic zone for tax and concessions.

"I most certainly don't," the Labor leader said.

"You're obviously raising with me today comments from Ms Gina Rinehart," Ms Gillard said.

"It's not the Australian way to toss people $2, to toss them a gold coin, and then ask them to work for a day."

In a video posted on the Sydney Mining Club's website on Wednesday, Ms Rinehart said Australians should not be complacent about mining investment when African workers were toiling for $2 a day.

"We support proper Australian wages and decent working conditions," Ms Gillard said.

Ms Gillard also rejected Ms Rinehart's assertion in the magazine column that Africa was now a more attractive mining investment destination than Australia with its new carbon and mining taxes.

"We've got an investment pipeline in resources of $500 billion, more than $200 billion of that at an advanced stage," the prime minister said.

"Ms Rinehart is a long-term opponent of the Minerals Resource Rent Tax and carbon pricing.

"On both of those, I fundamentally disagree."

She said business investment had risen by 20 per cent since the carbon tax was introduced.

Ms Gillard also said she was justified in telling miners at the Association of Mining and Exploration Companies conference in Perth on Tuesday they should lobby state leaders to back the federal government's school funding overhaul.

"I most certainly do (think it was appropriate) because there's nothing more important to the long-term future of the mining industry in this country than the quality of Australian schooling."

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Your Comments

she's got no idea what the weathers like at ground level

roy - from melbourne, 8 months ago

Africans are working for $2 a day but they are NOT happy. These mining companies will face large scale disruption some day as a result of this. Anyway why doesn't Gina take her billions and go dig up Africa and with the super, super profits (no tax payable) come back and spend up big over here to re-boost the retail industry.. then again she could just give her kids wealth to NGOs

Lang

mark - from moonta, 9 months ago

Gina spoilt little rich girl given a golden spoon by her dad lang. The poor woman has never lived in the real world and has no understanding of what hard work is. Anyway good to see abbott saying nothing as usual he does not want to upset one of his hero's

Retired

Lindy - from Perth,Wa, 9 months ago

I am quite appalled at Gina rineharts comments,cutting back on centre link,mining in Africa , telling people to stop whining,she has no idea how people are living and surviving day to day ...you try living on the pension,or disability allowance,or $2:00 a day as some poor africans are doing.i think she has over stepped her mark ....do you do charity work,visit cancer wards ,children's burns units,help the homeless ??????????? Look around your own backyard.no respect from me.

Comparison with Africa is ridiculous....honestly

Biss66 - from Gosford, 9 months ago

African workers may work for $2 per day and be happy to do so. So why doesn't Ms Rinehart move all of her business interests over there? I think she would find that any savings made in wages would be swallowed up 100 times over in security costs to protect her assets and workers from the endless civil wars, kidnappings, extortion and endless other security concerns that plague such enterprises on that continent. Australia has high wages, but it's safe and secure to do business in!!!

Money where your mouth is

Aaron - from Brisbane, 9 months ago

Gina is correct though. If Gina paid herself $2 a day since turning 18 it would be roughly $22300 (total). That means if she liquified her assets she'd have about $19 977 700 to make her corporation more competitive. So go on Gina, actions speak louder than words!

Rinehart

oncewas - from bribie island, 9 months ago

May have missed something but isn't the silence from the opposition deafening.

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