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Category: Mining Industry / State Parliament

Mining tax talk damaging WA's business reputation: CCI

Friday, 7 Oct 2016 13:04:05 | Hayley Roman

Rio Tinto stockpiles at Parker Point (ABC News: Gian De Poloni)

The Western Australian Government's talk of changing mining agreements is already damaging the state's reputation in the business community, the Chamber of Commerce and Industry (CCI) says.

Chief executive Deidre Willmott said the CCI was very concerned by the National Party's proposal to increase Rio Tinto and BHP Billiton's ongoing lease rental rate from 25 cents to $5 per tonne.

Ms Willmott said the Premier's suggestion of negotiating a buyout of the miners' ongoing lease rental, a proposal both companies have publicly rejected, was also harmful.

"These are all in state agreements and Western Australia's reputation as a place to invest in mining has been bought on the stability that those agreements have provided," she said.

"Even if those things don't happen, it takes a long time for that [concern] to be taken off the table around the world.

"It should not be a conversation that is taking place in terms of a revenue solution for the state.

"To some extent, the damage has been done but we can stop the conversation now and move to re-establish our reputation."

Ms Willmott said it was important to emphasise Western Australia was a jurisdiction that did not deliver shocks to investors.

2017 election 'most important election of our generation'

The CCI boss was speaking at a breakfast forum in Perth, and told the audience the March 2017 state election was the most important in a generation.

"We've had an extraordinary decade of investment in Western Australia, we now need to build on that investment," she said.

"We need to see our economy diversify. We need to see new industries emerge, we need to see established industries grow and most importantly, we need to grow jobs."

Ms Willmott's address was followed by Opposition Leader Mark McGowan, who outlined his vision for Western Australia ahead of the upcoming poll.

Mr McGowan did not make any new policy announcements, but reiterated selling Wester Power was not a "magical solution" to the state's debt problem.

He said WA Labor would outline its debt management strategy during the election campaign, but warned it would take "decades" to pay the debt down.

Mr McGowan agreed the proposed mining agreement changes were damaging.

"[The Premier] is trying to come up with a lump sum payment to make his own debt figures look better," he said.

"It's ripping up state agreements, which will be a sovereign risk and threaten future investment in Western Australia, I don't think people will support it."

The Opposition Leader agreed with Ms Willmott's view the March 2017 poll was crucial.

"You have a wild, crazy Government with minsters doing whatever they want, on whatever issue is out there versus, a responsible, competent, sensible, reasonable Opposition."

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