Divide between state, fed Nationals over ore tax

The state’s resources industry has applauded Federal Nationals leader Barnaby Joyce’s public opposition to the WA Nationals’ planned mining tax changes, which drew return fire from Brendon Grylls.

Mr Joyce told reporters in Canberra today that Mr Grylls’ proposed changes to the production rental from 25 cents a tonne to $5/t for mining giants BHP Billiton and Rio Tinto was unwanted.

“We want to see the development of regional areas... moving people to regional areas, growing towns in regional areas, that’s the outcome we want,” Mr Joyce said.

“I don’t think a new tax is going to inspire that growth.

“But of course if they don’t develop the mines then there’s no development there.”

Chamber of Minerals and Energy of Western Australia deputy chief executive Nicole Roocke said the comments were a breath of fresh air.

“Increasingly people from all sides, including the Nationals themselves, are admitting the truth about the proposed new mining tax,” Ms Roocke said.

“They are understanding that miners pay more than $17 per tonne to the state and federal governments, not the 25 cents per tonne lie that has been perpetuated.

“They are understanding that this tax would make Australia the highest taxing jurisdiction for iron ore production in the world and that by creating that situation, investment would fall and thousands of regional and non-regional jobs would be lost.”

Mr Joyce’s comments drew quick return fire from Mr Grylls, who outside state parliament today said Mr Joyce didn’t agree with giving Western Australia a fair share of the GST carve-up.

“Let’s be very clear on this; Barnaby is a National but he doesn’t support WA,” Mr Grylls said.

“I understand that. Barnaby Joyce cannot mount a defence of the unfairness and the absurdness but he will toe the line of the Canberra establishment that says ‘bad luck WA’.

“He is on notice from WA.”