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WA Nationals leader Brendon Grylls In a report commissioned by the Minerals Council of Australia, economists from Deloitte Access Economics predicted it would cause the Australian economy to shrink by $2.9bn a year and cause 7,200 job losses Australia-wide, of which 3,400 would be in WA and 2,900 would be in the Pilbara. BHP Billiton and Rio Tinto together employ about 17,500 people in their iron ore divisions in WA and a further 15,000 contractors. The report also warned that unilaterally changing a state agreement, which is a contractual arrangement set out in an act of parliament, increased sovereign risk, made WA less attractive to investors and could be unconstitutional. It really goes to the heart of sovereign risk and thats why I think there is the support [from the industry], Reg Howard-Smith, chief executive of the Chamber of Minerals and Energy of Western Australia, tells Guardian Australia. People have parked their competitive issues and raised the bar and said: no, this is part of how doctor home loans Oak Laurel the resource industry operates in WA. Howard-Smith says despite Australias incredibly low sovereign risk rating, compared with its direct competitors in iron ore, the increased risk caused by unilaterally changing a state agreement, combined with an additional cost that he put at $3bn a year, will make Australia a less attractive place to do business. Household fees and charges are going to have to increase substantially if you dont have a new revenue source Brendon Grylls Both mining companies already pay, at a conservative estimate, US$19 a tonne on royalties, taxes and other charges. He also says theres a strong argument that the special lease fee is no longer applicable to the agreements as they operate today, because it was imposed to help the state government recoup the set-up costs of establishing towns and roads to support new mining projects, and those towns are no longer company-controlled. Its a familiar playbook for the mining industry, which used many of the same arguments, with great success, to oppose both the resources super profits tax and the mineral resources rent tax. In both cases the campaign played a significant role in the downfall of a prime minister, first Kevin Rudd in 2010 then Julia Gillard in 2013. The whole story of the MRRT and Rudd and Gillard was that it worked, says Jeffrey Wilson, a senior lecturer in international political economy at Murdoch University. They basically brought down the prime minister on this.

2017-03-17 / Posted in