Mining royalty not a tax: Nationals president

The head of The Chamber of Minerals and Energy of Western Australia says the peak resources sector representative has nothing to gain in its public campaign against the National Party WA’s proposed mining tax.

Chief executive officer Reg Howard-Smith says big mining companies already pay $19 per tonne in taxes and charges to the State Government and the National Party WA’s proposed increase will cost more jobs.

The party is campaigning to increase the iron ore Special Lease Rental from 25 cents per tonne to $5 per tonne.

Candidate for Bunbury and National Party WA president James Hayward said the CME was “fudging figures” in its campaign.

He said it was “attacking” the Nationals’ plan to get the State budget “back on track”.

“A royalty is not a tax,” Mr Hayward said.

He said Mr Howard-Smith had to “come clean” with his claims.

But Mr Howard-Smith said the chamber stood by its comments and mining giants BHP Billiton and Rio Tinto averaged $19 per tonne in royalty and income tax contribution to the State and Federal governments.

“The figure was determined by averaging the fees, taxes and charges paid by the companies being targeted over a three-year period,” Mr Howard-Smith said.

“The CME’s comments are based on fact, not a populist approach to managing the budget leading up to a State election.

“The WA Nationals are trying to win votes as politicians do.

“The CME has nothing to gain other than to keep our mining sector competitive on the world stage.

“By adding billions a year onto the cost of doing business and threatening to change contracts there will be cuts to existing investment.”