Mining, Claptrap and FUD

It's really quite amazing. The hundreds of thousands (possibly even millions) of words that have been produced about the resources rent tax - all by the usual suspects in the right wing media - who are running around and doing the bidding of the large mining companies.

This just goes to show how big business now dominates the policy settings in our nation (in our world?) - they have been nibbling away since the start of the Howard era and now finally they are able to determine most government policy. Everything from industrial relations to immigration to taxation is now largely dictated by big business - with a few token inputs from the Treasury. Big business that is domiciled elsewhere I might add.

It stinks - if you are in any doubt then read "The Australian", "The Age" and "The Financial Review" today to get a feel for the bias that is being pushed by News Limited and Fairfax. The "dumb-arses" on commercial television will follow with their insight this evening. That ain't no coincidence Virginia - these boys and girls have been told what to say.

But what smells the most is the absolute crap that is being pushed about the 40% mining tax. Believe it or not there is a salt mine and a quarry in South Australia that are both moaning about how their businesses will be decimated - duh? Andrew Forrest is talking about how his mining operations will disappear and both BHP and Rio are telling the world that this tax will kill their operations in this country.

It's BS - all of it.

Firstly the 40% super profits tax is NOT a business input - it is applied only to PROFITS after the investors return has reached the government bond rate. So the mining operation must be up and running and producing PROFITS at a rate of more than about 6% BEFORE this tax is applied. Please tell me again how that will impact a salt mine and a stone quarry? And if it does then there is something wrong with the operator's mathematics. Perhaps we need to revisit the price of salt and quarry stone?

I was going to write a few more paragraphs - but what's the point? The miners won't acknowledge the truth, the press have been told what to say - and it looks like the rest of us will be done over by greedy big business - yet again.