The Federal Government has ruled out a parliamentary inquiry at this time into the iron ore market, ending nearly a week of speculation.
It came after claims by Fortescue Metals Group Chairman, Andrew Forrest, that the big mining companies are intentionally flooding the market to drive down prices.
Prime Minister Tony Abbott suggested last Friday an inquiry into the sector might be needed, however, later backed away from that statement.
This afternoon the Federal Treasurer released a statement.
“Over recent days, there has been some speculation about whether a parliamentary inquiry into the iron ore sector was necessary.
“After discussing the issue with regulatory bodies and stakeholders across the resources sector, the Government will not be initiating an inquiry at this time,” it said.
Labor did not give its support for an inquiry instead calling on Mr Abbott to offer a clear position on the issue.
“It has taken too long for the Prime Minister to admit he got this wrong,” Opposition Leader Bill Shorten said this afternoon.
Independent Senator Nick Xenophon last week tabled terms of reference in the Senate for his own inquiry examining the impact of Iron Ore on the Federal Budget.
“The fact that the PM and the Treasurer were initially supportive of an Inquiry by both houses of Parliament and have now backed away, is indicative, yet again, of the enormous and disproportionate power of the mining lobby,” Senator Xenophon said.
“The iron ore giants have now succeeded in censoring the Government and the Parliament,” he continued.
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