Treasurer Wayne Swan's post-budget roadshow reached Perth last night when he dined with mining industry leaders at accounting firm RSM Bird Cameron, to be followed by a Chamber of Commerce and Industry lunch today.
Guests at the RSM dinner, including Rio Tinto Iron Ore boss Sam Walsh, Woodside Petroleum's Don Voelte and Alcoa's Alan Cransberg, used the occasion to press the Treasurer on the consultation process for the proposed new mining 'super profits' tax.
It is understood Mr Swan did not concede any ground, repeating his view that consultation will be confined to transitional provisions.
One guest told WA Business News that Mr Swan flatly refused to countenance any discussions around the use of the government bond yield (about six per cent) as the rate at which the new tax kicks in.
Other guests at the dinner included Gindalbie Metals' chief executive Garrett Dixon, Atlas Iron's David Flanagan, Mineral Resources' Peter Wade and Schaffer Corporation's John Schaffer.
Mr Swan was told that the proposed tax had raised concern about the perception of WA by overseas investors.
He was also told that its retrospective application was a cause for concern, although apparently Mr Swan surprised the guests by arguing the tax was not retrospective.
Mr Swan's national budget roadshow comes to WA as the state's Liberal Party launches its $50,000 advertising campaign against the Commonwealth's new mining tax.
The advertising campaign claims the tax threatens up to half a million Australian jobs and targets electorates where Labor is believed to be vulnerable.
WA Liberal Party director Ben Morton said the planned 40 per cent tax on mining profits will be a disaster for the state but it can be stopped with a change of government.
After starting his roadshow in Queensland last Friday, Mr Swan will travel to Adelaide, Melbourne and Sydney later in the week.
