Mining tax consultation a 'charade'

Mining baron Andrew Forrest has slammed consultation over the mining tax as a "charade" as he prepares for a private meeting with the Prime Minister today.

Mr Forrest aired his opposition to the proposed mining super-tax as Kevin Rudd and senior ministers toured Perth, where they met protesters and supporters of the tax plan.

The federal government insists it is involved in "constructive and genuine" dialogue with the mining industry.

But the Fortescue Metals Group chief says he holds out little hope of success from today's meeting, saying the government is not listening and not budging on the 40 per cent tax.

"It is a charade, the consultation is there I feel in lip service only, we're not seeing the government move an inch on this," Mr Forrest told ABC Television.

He said this attitude had come from the government from day one. He met Treasury officials at 8am on the first day after the tax had been announced.

“The first words were: `this tax is binary Mr Forrest, if you want to change this tax, you have to change the government'. It frankly has upset me to this day."

Mr Forrest said he did not want to bring down the government, but warned that the tax, as it stood, would decimate the industry.

Community cabinet

Last night in Perth, the Prime Minister escaped a grilling at a community cabinet meeting at a school in Como.

A well-behaved crowd of around 500 people let Mr Rudd and his ministers off lightly, asking only two questions about the resources super-profits tax.

The questioners were in favour of it, one saying that mining companies which decided not to go ahead with projects at certain sites should forfeit.

Mr Rudd was also asked to guarantee revenue from the tax would go to building infrastructure and not pay off debt.

Mr Rudd assured him the money would not go toward debt repayment.

Earlier yesterday, the prime minister announced that more than $2 billion would be spent in WA through a regional infrastructure fund to build roads, railways, ports and other needed facilities.

Before the forum, about 40 protesters stood at the gates of the school holding placards opposing the tax.

Prior to the community cabinet meeting, Mr Rudd was grilled over the tax at a Perth Press Club luncheon at the Hyatt Regency Hotel.

At a park across the road around 2,000 angry mining industry workers and supporters rallied to demand the government axe the tax.

Mr Rudd and Treasurer Wayne Swan were also heckled when walking on a Perth street by people angry over the tax.

Opposition reaction

But Opposition Leader Tony Abbott has dismissed the Prime Minister's move to increase infrastructure funding for the mining states as nothing more than a desperate bid to buy votes.

Under Kevin Rudd's plans, Queensland, as well as WA, will benefit from the proceeds of the mining super profits tax.

Mr Aboott says it's a clear sign the government is getting desperate and trying to buy votes ahead of the election.