The federal government appears to be backing away from a parliamentary inquiry into iron ore, but faces calls to review ways to improve the industry.
Independent senator Nick Xenophon met Treasurer Joe Hockey last week where the idea of an inquiry headed by a coalition MP was canvassed.
Senator Xenophon has backed concerns of smaller iron companies that bigger groups are manipulating the market.
Iron ore prices have fallen sharply and federal tax revenues have been badly hit.
Prime Minister Tony Abbott said on Wednesday the government had made no decision.
"Obviously there've been various claims and counter-claims made and there is an argument for getting to the bottom of all of this, but we've made no decision to have an inquiry," he said.
Mr Hockey said he had been consulting stakeholders.
But asked on Wednesday whether he had previously supported the idea of an inquiry, he told reporters: "No. OK, anything else?"
Opposition Leader Bill Shorten talked down any possible Labor support for an inquiry, describing it as another "Prince Philip moment" on Mr Abbott's part.
Mr Abbott, who last week spoke strongly in favour of an inquiry, had faced public ridicule and questions about his judgment from within the Liberal Party when he awarded a knighthood to Prince Philip in January.
Liberal backbencher Angus Taylor, who has been named as a potential head of an inquiry, offered a way forward on Wednesday, saying discussions were needed.
"Regardless of an inquiry, we need to ensure the whole industry is competitive and flexible, and able to adapt to the new environment," Mr Taylor said.
The issue is expected to go to cabinet shortly and be discussed in the party room next week when parliament resumes.
Senator Xenophon has pledged to seek support for a Senate inquiry if the government does not act.
Mr Shorten says if the government is concerned about big iron ore producers misusing their market power, the Australian Competition and Consumer Commission should be asked to investigate.
Share
