Gillard denies mine tax increase deal

July 27, 2010

 JULIA Gillard says her Government will not agree to increase the mining tax, despite a facing a likely post-election battle with the Greens to get it through the Senate.

The Prime Minister has denied a Labor preference deal with the Greens will influence the Government to negotiate changes to the tax.

The Greens want to increase the tax rate to force mining companies to pay more.

In an interview with Alan Jones this morning, Ms Gillard denied the preference arrangement would have any bearing on Senate negotiations.

“What do you fear, you fear that somehow if I am reelected that in dealing with the mining tax the rate will go up because of the Greens in the Senate,’’ she said.

“That will not happen, I will deliver the mining tax I have promised and the benefits I have promised.’’

Hostile miners angry at the deal Ms Gillard negotiated with big miners in July are set to resume their anti-government advertising campaign.

Ms Gillard negotiated a $10.5 billion Minerals Resource Rent Tax with big miners BHP Billiton, Xstrata and Rio Tinto within a week of taking over as Prime Minister.

However small and medium size miners are unhappy with the deal.

The Association of Mining and Exploration Companies representing small miners said yesterday it will now resurrect its advertising campaign.

Ms Gillard said she had met with small and medium miners and there was a consultation process still ongoing to negotiate their treatment under the tax.

Telegraph