Workers in WA's gold industry have have held a rally against a proposed royalties hike and sent a message to the state government that they are "messing around with people's lives".
The Labor government plans to lift royalty rates from 2.5 per cent to 3.75 per cent in an attempt to raise nearly $400 million over four years and help repair a budget weighed down by a record deficit and debt tipped to pass $40 billion.
The McGowan government needs the support of the Liberal opposition in the upper house, who understood to be divided on the issue and are meeting on Tuesday to decide whether to block it.
However Opposition Leader Mike Nahan spoke against the hike at the rally outside Parliament House in Perth saying he would argue against it.
"The idea that it won't affect jobs quite simply brings into question the competence of the government on this issue," he said.
The industry is pumping money into a large ad campaign against the plan similar to campaigns against past mining taxes and lobby group the Chamber of Minerals and Energy released analysis last week claiming the hike could cost up to 3000 jobs.
Ben Bryant, the head of community relations at one of WA's largest gold mines Newcrest's Telfer employing 1550 people, warned it would be unprofitable under the hike.
"What I see is a situation where the government is playing politics with real people, this may be a game to you, and the numbers may look good on a spreadsheet, but in reality you are messing around with real people's lives," he told Tuesday's rally.
Allan Ballard, a mining foreman for Northern Star, who lives in Kalgoorlie with his wife and children, said he did not believe the government understood how many people would be affected by a decision that would force families out of the town.
He had previously worked in Kambalda and watched it become a virtual ghost town when nickel and gold prices plunged.
Treasurer Ben Wyatt spoke to a hostile crowd at the rally, saying management at the mining companies were lying to the workers by claiming they could not afford the hike.
He said they were highly profitable based on current gold prices of $A1650 an ounce and the hike only applies when prices are $1200 or above.
"We have said to the CME and the miners: if that price is no good, come up with another one we are happy to consider any other transition price."
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