The Australian Treasurer Wayne Swan spoke to the Queensland Media Club and told them that there would be no rivers of gold from the mining industry in the upcoming budget.
Mr Swan said that there would be less tax dollars coming in from the mining boom than what most people expected and this was going to make it a tight budget.
Mr Swan said that even though the mining boom would ride on the high commodity prices, mining companies will be writing off the value of capital expenditure and so they will pay far lower taxes in the period. He added that the expectations some people have about the volumes of revenue flowing in from the mining boom are inflated.
In immediate response the opposition and the mining industry called his speech nothing more than laying groundwork of excuses for the budget. The opposition leaders said that the Labor led government had to hide their own poor economic management behind some excuse and they were talking about lower revenues from the mining industry as a scapegoat.
Mitch Hooke of the Australian Minerals Council also said that the Treasurer was again twisting facts to suit his political interests. Mr Hooke said that Mr Swan did not mention that the mining industry tax payments have doubled since 2008-09. Also these taxes total 24% of the company tax receipts in the same year.