Sydney: Australian Treasurer Wayne Swan said the government was committed to the 40 percent rate on its proposed mining profits tax as it prepares to hold discussions with resource companies opposed to the plan.
"We said there would be generous transitional provisions and we would discuss all of the matters and issues they had," Swan said on the Australian Broadcasting Corp's Insiders programme. "But the government's bottom line is the Australian people have not had fair value here," he said.
The resource profits tax, announced on May 2, is due to begin in 2012 and estimated to earn A$12 billion (Dh39 billion) in its first two years. Rio Tinto Group, BHP Billiton and Xstrata have said they are reviewing projects in Australia because of the proposal.
"Some very profitable ventures will pay more, and they do recognise privately that they do need to pay a bit more," Swan said on the programme. A current royalties arrangement "punishes a lot of miners whether they make a profit or not," he said.
Ad campaign
The Australian Workers Union, whose members include miners, on Saturday launched a television advertising campaign in support of the tax.
Australia is the world's biggest exporter of iron ore, coal and alumina, and demand for resources from China and India helped the country's A$1.2 trillion economy skirt recession during the global financial crisis.
"We are riding on the back of the resources sector, but we are not harnessing it properly and we are not using it properly," AWU National Secretary Paul Howes told the Ten Network's Meet the Press programme. "These companies will continue to exploit the natural resources in the ground because they will continue, tax or no tax, to make megabucks," he said.
Australia's government, led by Prime Minister Kevin Rudd, is scheduled to face an election before the end of the year.
