The mining industry does not like the ambiguity that hangs over the new proposed mining tax. The Resources Super Profits Tax which was introduced at 40% by the last Prime Minister Kevin Rudd led to a series of anti tax campaigns which eventually caused his departure.
Polls conducted by social research company TNS showed that the first announcement of the tax had met with 32% public support for the tax. However over six weeks of high drama and negotiations with top mining chiefs that support dwindled to 27%.
What is most interesting is that 40% of the respondents were still undecided on the issue of the mining tax. This is a sizable population of people who fear for their jobs and don’t understand if the RSPT is going to be good for them or not.
Andrew Robb, the opposition finance spokesman felt that the mining tax would adversely affect the budget. Assurances given by Treasurer Wayne Swan, that the surplus is in no way dependent upon revenues from the mining tax and is in no way affected by the outcome of the negotiations with the mining industry are false.
Ms. Gillard is yet to reach any consensus on the new form of the mining tax and the negotiations with the industry are yet to come to a conclusion. The final result will have far reaching consequences on the economy and on the jobs that people hold.