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Rudd escapes grilling over mining tax

There's been a mixed reaction in Western Australia to the Prime Minister's controversial plans for a mining super tax.

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Source: AAP


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If Prime Minister Kevin Rudd expected a grilling from West Australians over his government's controversial resources tax at a community forum in Perth, he didn't get one.

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 last night.

Earlier in the day, Mr Rudd was questioned about the 40 per cent 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 heckled when walking on a Perth street by people angry over the tax.

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Community cabinet

But at last night's community cabinet forum in a gymnasium at Como Secondary College, around a dozen questions were put about the environment, community projects, animal welfare, education and pensions.

The two questioners who brought up the resources tax were in favour of it, one saying that mining companies which decided not to go ahead with projects at certain sites should forfeit.

Another questioner asked Mr Rudd 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 on Wednesday, 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.

The evening forum was held in the marginal electorate of Swan which Labor may struggle to win back if WA sentiment against the mining tax hits support for the party hard.

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

Police patrolled the school grounds and forum participants had to pass through a metal detector to reach the venue.

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.


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