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We'll fight for mining tax: Swan

The federal government has vowed to win parliamentary approval for its mining tax, despite a high-level report recommending changes.

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Source: AAP


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The federal government has vowed to win parliamentary approval for its mining tax, despite a high-level report recommending changes to its current form.

The Organisation for Economic Cooperation and Development (OECD), in its Economy Survey of Australia released on Sunday, said the minerals resource rent tax was justified.

But the OECD thought the 30 per cent tax level was too low and recommended putting revenue in a reserve fund.

The Australian Greens agree, making it tricky for the government to get the tax endorsed by parliament.

Treasurer Wayne Swan says the government is going to stick with the agreement it negotiated with three of the nation's biggest miners.

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"We will fight for this in the parliament because it is good for the economy," he told ABC Radio on Monday.

While accepting there had been some criticism from the OECD, Mr Swan said there was overwhelming support for what the government was doing.

The Paris-based institution also questioned some aspects of the $43 billion National Broadband Network, querying whether the government was putting all its eggs in one basket with one technology.

Mr Swan said the OECD also made the case to rollout the NBN because Australia was so far behind with broadband technology.

He was "delighted" to accept the report because an overwhelming majority of its context was a "stunning endorsement" of the government's economic strategy.

"Yes, there is a detailed analysis of the pros and cons of individual measures, and even there, very, very supportive of the government's approach," he said.

Labor MPs unsurprisingly sought to emphasise the report's good comments about the Australian economy.

Backbencher Nick Champion said the report was a very powerful recognition of the good work done in the face of the global financial crisis.

"We have had an OECD report this morning that has endorsed emphatically the government," he told reporters in Canberra on Monday.

Liberal MP Dennis Jensenhad a very different take on the report.

"The government clearly does not get it," he said.

"They are borrowing money like there's no tomorrow."


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