There will be howls of pain from the mining industry in response to a forty percent tax being imposed on their profits, but the facts behind this mining b0om suggest that the impost is simply justified.
The demand for our minerals has absolutely nothing to do with Rio Tinto, BHP Billiton or any of the other mining companies. China and India have used their cheap labour to create world demand for their products - and to achieve that output raw materials have to come from somewhere.
Australia is the " lucky country " because we are rich in iron ore, coal and many other high demand minerals. The big mining companies have simply piggy-backed their operations to demand - and achieved stupendous profits.
The minerals they are ripping out of the ground - and exporting overseas - belongs to the Australian people, not to these mining companies , and it is not renewable.
Eventually - and that might be centuries away - they will be exhausted if we continue to mine at the present rate.
The mining companies have exploited favourable circumstances. It is only reasonable that some of that profit be returned to enhance the living standards of the Australian population by way of new infrastructure - and a better superannuation system to provide for a comfortable retirement.
No doubt eventually both sides of politics will arrive at a similar solution because the imposition of such a tax is morally justified.
We - the people - own those minerals - and we are entitled to our dividend for their export !
No comments:
Post a Comment