Mining squeezes broader economy, report shows

The Mining the Truth report released today by the Australia Institute turns the spotlight on the industry’s self-serving rhetoric and confirms the need to fix the government’s feeble mining tax.

Much has been said by the mining industry about the impact of the mining boom on the mining industry, but there has been far less scrutiny of the impact on the rest of the economy.

Mining is squeezing out other sectors to the detriment of farmers, manufacturers, teachers, and hospitality workers. Meanwhile, some $50 billion reaped from Australia’s mineral resources – 83-percent foreign-owned – will be sent overseas as dividends to foreign owners over the next five years.

Under Labor’s feeble mining tax and the Coalition’s even more irresponsible prescription to let mining giants off the hook, Australians will be left at the mercy of a two-speed economy and future governments making unnecessary cuts to health, education and lacking the funding for key infrastructure such as high speed rail.

This new report underscores the need for the government to reconsider the Mineral Resource Rent Tax. The Greens will move to expand the MRRT, oppose the tax cut for big business while supporting tax relief for small businesses, and push to set up a sovereign wealth fund. This is the economically responsible thing to do.

A full copy of the report can be viewed here.