Saturday 3 July 2010

A dispute is settled !

The mining super tax dispute is over - but whether that resolution is a cave in or a brilliant bit of diplomacy depends on the political view prevailing.

In a democracy a major taxation change requires intense negotiation. Kevin Rudd tried to force his view without any form of compromise. It was a " crash through - or crash and burn " approach. Rudd is now a smouldering pile of ashes !

The solution leaves a lot of unanswered questions.

The tax now only applies to two commodities - iron ore and coal

There are 320 companies in Australia mining coal or iron ore, and Julia Gillard only bothered to talk to three of them - and obviously these were the largest operators. The other 317 have every right to feel ignored !

Of course solving this problem was in need of speed - and consultation with three hundred people would take time.

Julia Gillard is desperate to get some quick runs on the board - and then call an election while there is still bounce in her approval rating during this honeymoon period.

Pity that immigration and the " boat people " can not be so easily solved !

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