Blog Archives for November 2011

Qantas ignores passengers in union-busting tactics

Blog Post | Blog of Sarah Hanson-Young
Tuesday 1st November 2011, 7:56am

For years Qantas has marketed itself to the world with the Peter Allen song, "I still call Australia home."

On Sunday night, around 70,000 passengers in Australia and across the globe just wanted to get home but they were held to ransom by an airline that seemed it couldn't care less.

Fair Work Australia ordered early on Monday morning for the company to call off its action to shut out staff and for all sides to settle their dispute within 21 days. While flights were due to resume yesterday afternoon, thousands of people are still confused and frustrated at airports around the world, all trying to reach their destinations.

The justification by the company's senior management for the grounding was disproportionate and extreme. It was far beyond the campaign the unions are running to try to preserve Australian jobs and maintenance contracts.

The Fair Work Act requires any party to give 72 hours' notice before a strike, but the airline gave no warning. If any of the three unions had called a snap strike, the airline would scream bloody murder.

But when an airline does the equivalent, its management says it had to be done to head off further union disruptions over the coming year. Management has shown a lack of commonsense and respect for its passengers, because it gave them no warning before shutting down its routes on Saturday afternoon.

Does anyone really believe that Qantas' senior management was not planning the disruption? It's not as if chief executive, Alan Joyce, woke up on Saturday morning thinking, "Eureka! Now that my $2m pay rise has gone through, I'll ground all the flights and catch the unions off guard". A decision to terminate nearly 450 flights is not taken lightly. The board must have done modelling on how much the company could afford to lose before it won its way.

News reports on Monday suggested the pain to the national economy could have been up to $250 million dollars a day. The company appears intent on hobbling our tourism industry by sending the wrong signal to people contemplating using Qantas for their Australian holiday.

I was able to use Virgin to get to work in Canberra, but I have empathy for those who missed a hospital visit, job interview or a wedding or have to stay in an airport terminal because they cannot get onto or afford another airline.

Qantas' communication with its passengers has been appalling and sorely lacking. I've heard one distressed traveller in Adelaide who was checked-in by Qantas staff on Saturday, and was waiting in the departure lounge before being told her flight was cancelled.

Another person I know received a text message after 8pm on Sunday night informing them their Qantas flight the following morning had been cancelled. I feel sorry for those Qantas passengers who don't follow news reports closely and were not aware the fleet had been grounded.

Passengers I saw on news reports had been halfway to Australia when they were stuck in places such as Los Angeles or Bangkok or Hong Kong. Others had saved for years for the cruise of a lifetime, only to find they could not make it to Australia before the ship was due to sail. I can only imagine how livid one Qantas passenger at LAX was when she tweeted the jet's doors had closed but the flight had been cancelled.

I agree with what the consumer organisation Choice has suggested - passengers left stranded should be compensated by Qantas, and penalties be imposed so the problem is not repeated.

Alan Joyce's attitude through all of this has been nothing but arrogant. He's riding high because regardless of the airline's future, he's already received his bonus. Australians don't cop arrogance very well, and the public have let him know on social media networks.

Qantas's marketing slogan is the "spirit of Australia." Given the damage Mr Joyce has caused to its national and international reputation, I hope we will not soon be talking about the ghost of an airline and more Australian employees sacked to pay for the costs of grounding all flights.

First published in The National Times on November 1, 2011.

 

 

On the war in Afghanistan. Senator Scott Ludlam

Blog Post | Blog of Scott Ludlam
Tuesday 1st November 2011, 3:17pm

Senator LUDLAM (Western Australia) (October 31st, 17:04):


I rise to add my condolences to those of my colleagues on all sides of the chamber concerning the horror that occurred on the weekend and to pay my respects to the three fallen Australians whose sacrifice is appreciated by all of us. Also to the Afghan interpreter, who was killed, and the many who were terribly injured, our thoughts are with them and their families. It is worth noting in passing, with a sense of sadness, that we do not speak to the names of each of Australia's fallen troops now because there are so many. We stand in silence in acknowledgement of their sacrifice but simply do not have time as a parliament to speak to them all as we used to-32 in a decade and a third of them fallen in only the last 12 months. If there has been such progress, if things look as wonderful on the ground as Senator Feeney has been describing, it appears that the violence that our troops have been exposed to is only getting worse.


More than 2,700 coalition dead has been the cost in lives of this war, and an uncounted number of Afghan civilian deaths. If this parliament stood in silence momentarily and acknowledged the civilian loss of life in Afghanistan, we would not have time to conduct any business at all. The estimate over the last four years is that nearly 9,000 Afghan civilians have been killed in the conflict, with civilian deaths increasing each year. It is these profoundly disturbing numbers of civilian deaths that I think give the lie to the picture that is being painted that we are in this struggle for the long haul, that all we need to do is stay the course and eventually there will be some kind of happy ending, and that we will be able to depart the country with some form of democracy in place.


Tell the truth. Tell the Australian people the truth. Why is it so difficult to even have these issues debated in the Australian parliament? We would not have even had a mature debate in this parliament if Senator Brown had not got that into the agreement with the Gillard government last August. Tell the truth as to why after a decade in this quagmire there is now the strongest opposition to this war by the Australian people. A recent Essential Media poll showed that 64 per cent of Australians think that troops should withdraw-that is up from 56 per cent this March and just under half about this time last year. This is now a profoundly unpopular war.


It is justified, as we heard to some degree from some of the previous speakers, that this has been a great cause for the emancipation of women. A June 2011 Trust Law report by the Thomas Reuters Foundation found that violence, dismal health care and brutal poverty make Afghanistan the world's most dangerous country for women. After a 10-year occupation, Afghanistan has emerged as the most dangerous country for women overall and the worst in three of the six risk categories-health, non-sexual violence and lack of access to economic resources. So tell us the truth, government spokespeople and opposition spokespeople, who stand up in here and tell us that things will be fine if we simply toe the line. What if that is not true? German General Kujat told the German Daily in July 2011:


The mission fulfilled the political aim of showing solidarity with United States, but if you measure progress against the goal of stabilising a country and a region, then the mission has failed.
There has been no such honesty from Australian policymakers. We catch a glimpse, of course, of how this war is really seen in the higher levels of the United States government-again thanks to the huge release of US State Department diplomatic cables by the audacious organisation WikiLeaks. Ambassador Karl Eikenberry, who served in Afghanistan as a three-star general, at the end of a 9 October cable marked 'confidential' said:


One of our major challenges in Afghanistan is how to fight corruption and connect people to the government, and their key government officials are themselves corrupt.


In another cable, quoted in Bob Woodward's book on the war behind the scenes, Obama's War, Eikenberry said:


Right now we're dealing with an extraordinarily corrupt government.


These are our partners. That underscores the tragedy of the events we saw over the weekend. Senator Faulkner says that we are there at the invitation of the Afghan government; we are there at the invitation of the government of the United States. Let us be absolutely clear about why we are there. This is the only time in its history that the ANZUS Treaty has been invoked. Prime Minister Howard, without recourse to parliament, put us into that war, took us directly into that conflict. That, I think, tells us more than anything else.


The debate in Australia is bland, uninformative and superficial compared with the depth of the debate which has occurred in the many other countries Senator Milne outlined whose troops have been withdrawn. The debate has been had, the facts were put on the table, a deadline was set and then the troops were drawn down. There has been no such debate here in parliament. There has been this strange, shallow, bipartisan willingness to tug the forelock and carry on. And not a single parliamentarian in this place, unless you happen to have a seat in cabinet, has the ability to do anything about it because this parliament has never granted itself the so-called 'war power', the ability to sign off on troop deployments and then to call them home. These are not military decisions; these are deeply diplomatic and political decisions which, as parliamentarians, the people who come into this chamber to discuss the matter have absolutely no power to do anything about. Senator Faulkner, as a former serving defence minister, attended funerals and told this very chamber of the tragic and gruesome updates of the conflict he had tried to manage.


This matter has been reserved for the executive. There is still this stale, bipartisan consensus, unlike ourpartner countries and most other countries which we consider to be our peers, where that power has been devolved from the executive to at least give some say to the parliament-including Westminster and the United States congress, but no such luck here in Australia. So parliamentarians will file in here and express ongoing confidence and support for the war knowing full well that, even if they disagree, there would be absolutely nothing they could do about it.


We can come in here and conduct a debate, trying to put the facts on the table, but in fact it is the Prime Minister's call. We saw that most tragically-even more tragically than the incident we are debating now-in the war in Iraq, where the executive, premised on a lie and against the will of the vast majority of Australian people and arguably against international legal opinion, took us to war in Iraq, which resulted in enormous civilian, military and resource costs.


So when will the debate finally come to parliament? We can sit down now, having had a say, perhaps feeling a little better that we have got a few things off our chests and expressed our support for the people we have put in harm's way, but what can we actually do about it in this parliament? It is time the debate in Australia got some maturity about it. Let us hear from the people who have served on the front line, but let us also hear from the Afghan people. People in here claim that we are wanted there, that we are there at the invitation of the Afghan government. Afghanistan is being run somewhere on the spectrum between a barely functioning new democracy and an organised crime syndicate. These are the people we have signed up to as our partners in Afghanistan. We owe it to the people we have put in harm's way not to wait for a quiet patch when the attention has gone away, with full respect to the people who have paid the ultimate sacrifice, and to ask the questions: why are we there, do we need to be there, how long are we planning on being there, what are the conditions we would call a success and at what point will we say that our work there is done?


In the piece quoted by Senator Milne, it is understood that perhaps within months of a withdrawal-this is from one of the people Professor Hugh White quotes-it may well be that the corrupt government which is being propped up at the moment would not last a matter of months. At what point do we think it would last? When will it be on its feet? Do we need to be there for another decade? These questions need to be asked and they are simply not being asked because of the stale, bipartisan consensus that we will soldier on until the United States government tells us we can go. Surely we can do better than that.


 

Tasmanian forest conservation under threat

Blog Post | Blog of Bob Brown
Wednesday 2nd November 2011, 9:55am
by AlisonHetherington in

Yesterday in parliament the Minister for Forestry, Senator Ludwig, confirmed to Christine Milne what has been apparent from months of inaction: the Tasmanian and Australian governments do not intend to uphold all the conservation goals of the Tasmanian forests intergovernmental agreement.
The Tasmanian government as part of the agreement was supposed to stop ALL logging in the 430,000 hectares of forests identified by environment groups. This area was supposed to have been placed in informal reserves immediately.
Independent experts were brought in to look at the options for logging outside the 430,000 hectares but had very narrow instructions on how to do so. In response, a meeting of the governments, unions, environment groups, sawmillers and industry representatives asked the experts to take a more expansive view on stopping logging in the 430,000 hectares and to report back to the group.
If the government cannot find areas to log outside of this area then it is supposed to pay out the contracts for the wood.
But in parliament this week Senator Ludwig revealed that the government intends to agree on a list of areas that can continue to be logged in the 430,000 hectares. This is a direct breach of the intergovernmental agreement signed by the Prime Minister and Tasmanian Premier (see Christine Milne's Senate question and speech: http://www.aph.gov.au/hansard/senate/dailys/ds011111.pdf).
The intergovernmental agreement was negotiated in good faith and should be adhered to. This about face on the conservation goals of the agreement is not acceptable. Both governments need to ensure all the conservation goals of the intergovernmental agreement are observed, just as those measures aiding unemployed workers, contractors, Forestry Tasmania, and Gunns have been.

An historic vote

Blog Post | Blog of Bob Brown
Wednesday 2nd November 2011, 10:51am

Great excitement! Last night the House of Representatives passed my private member’s bill to remove federal ministerial veto power over Territory laws*.

It is the first Australian Greens bill ever to pass Parliament and become law.

No longer will a single federal minister be able to step in and --with the stroke of a pen and without reference to Parliament -- dismiss laws passed by the democratically elected representatives of the Territory Assemblies (as the Howard government did when it overrode the civil partnerships laws passed by the ACT Assembly five years ago).


This bill has passed thanks to you and the 1.6 million Australians who voted Greens last election
and thanks to the support of the Chief Ministers of the Territories, the Gillard government and the Independents, and the four Greens elected to represent Canberrans in the ACT Legislative Assembly.

It is a great day for the Australian Greens and great day for democracy! Raise a glass!


If you are near Canberra next Tuesday, please come to the Senate to see the historic carbon price package pass into law. Click here to rsvp or for details to watch online.


* Territories Self-Government Legislation Amendment (Disallowance and Amendment of laws) Bill 2011

Red-letter day in fight against warming

Blog Post | Blog of Sarah Hanson-Young
Tuesday 8th November 2011, 8:12am

Today will be a great day for Australians who have waited years for their government to take our warming planet seriously.


After years of talk and a few backward steps, the Senate will pass a suite of legislation that will put a price on pollution from July next year.


Australians - who in 2007 and 2010 voted for politicians to back widespread community support for taking action - will be able to finally say that most of their elected representatives listened and acted.


Their Parliament has taken action in response to hundreds of thousands of people, especially younger Australians, who sent letters, danced in flash mobs, signed petitions or attended rallies in cities and towns across the country urging that we heed the warnings of climate scientists.


As I told the Senate last week in my speech on the historic bills, it is an honour to be a senator at the time the Federal Parliament is finally taking this historic reformist step in the defence of our biosphere and all the creatures living within it.


We've taken action because of the changes Australians voted for in the last federal election by choosing Adam Bandt as the Greens member for Melbourne and putting four more Greens into the Senate. That gave our party the balance of power.


We formed an agreement with Labor to keep the Gillard government in office. A crucial part of the agreement was our insistence that the government create a cabinet-style committee to put a price on pollution. The members of the multi-party committee from the Greens, cross-benches, government and independent experts collaborated in the spirit of goodwill and got a result after 10 months of hard work.


Unfortunately, despite being offered a seat at the table, the Coalition chose not to be part of that process, and indeed has proposed just one amendment to any of the bills that will pass today. That amendment was an attempt to delay the introduction of the carbon price until after the next election. More delay, more denial and no leadership.


The stance of the conservative parties contrasts with that of the business community, which has been seeking certainty on a price on pollution as it factors in risks for future investments. Now, with the price at $23 a tonne, businesses can incorporate that into their planning.


The carbon package also includes $13.2 billion worth of funding for clean, renewable energy projects. Some $10 billion will go to the Clean Energy Finance Corporation, an independent board that will allocate money over five years for renewable energy, energy efficiency and clean technology projects. That money was not available under Labor's carbon pollution reduction scheme, which the Greens refused to accept.


Last week I joined my fellow Greens senators in arguing that as Australia is the world's 15th largest total emitter and has the highest amount of emissions per person among the major polluters, it had to take action. We have to change our energy use and can afford to do so. Many of our Pacific neighbours, some of whom have had to flee their homes as sea levels rise, do not have that luxury.


Contrary to the relentless negative campaigning and myth-peddling by the Coalition, nine out of 10 Australian households will be compensated for the consequences of a carbon price. A $250 million Low Carbon Communities fund will help people and community groups on low incomes. There is $750 million in grants for small businesses to invest in energy-efficient equipment.


We are riding the biggest mining boom our country has ever seen, and must not squander our good fortune to act while the planet continues to warm. Today, the Senate will seize the moment.


First published in The National Times on Tuesday, November 8, 2011.


 


 

The carbon price is law. Now begins the campaign for serious climate action!

Blog Post | Blog of Christine Milne
Tuesday 8th November 2011, 3:12pm

Today we celebrate a huge achievement, with the passage of the Clean Energy Future legislation that finally puts a price on pollution and gets us ready for historical investments in clean, renewable energy, energy efficiency and protection of landscape carbon.

But, in a very real way, today's vote is a new beginning for the campaign for serious climate action, not the end.

This package of bills was designed carefully to have as many points of review as possible, as many opportunities for campaigning as possible, and as much independent expert advice as possible. Critically, it is designed with complete upward flexibility: there is no limit to our ambition if we are ready to aim high.

The challenge now is to build the political will for ambitious, science-based action over the years ahead.

The single most important innovation in the Clean Energy Future package is the process for setting targets for the emissions trading scheme that starts in 2015. Inspired by the British system, we will have five year rolling carbon budgets, updated each year for the following five year period. Annual targets for the trading scheme will be set within those budgets.

The carbon budgets, which will have to pass through the parliament, will be recommended by an independent expert panel, the Climate Change Authority. In the UK, it has already proven too hard for the government of the day to disregard the recommendations of their Climate Commission - a key factor in the UK's world-leading position on legislated pollution targets. The Authority will have regard to but not be bound by the new 80% by 2050 emissions reduction target. It will undertake extensive public consultation and look in detail at current science, current global efforts and the local economy when determining what budgets it will recommend for the following five year budget each February. The parliament will have to act on those recommendations by the federal budget each year, marking out a critical period for climate campaigning.

This means that, each and every year from 2014 on, we will have the opportunity to lift our sights to greater ambition, to bring our targets closer into line with the science.

That brings us the first key challenge. As world-renowned climate scientist, Professor John Schellnhuber, who was here in Australia recently, said: "If political reality is not grounded in physical reality, it is useless". In order to create the space for the climate change authority to do its job, we have to embark on a major campaign to rebuild respect for the science and broad public acknowledgement of the scale of the problem we face in attempting to keep global warming to less than 1.5 -2C.

And, of course, making the best possible appointments to the Authority will also be critical.

That brings me to the next critical area where what we are legislating today is only a start - driving the transformation to 100% renewable energy.

The Clean Energy Finance Corporation [CEFC] and Australian Renewable Energy Agency [ARENA] have the potential to dramatically re-shape the investment environment for renewable energy in this country. If they are to be as effective as they possibly can be, the renewable energy industry and those who want to see it grow as fast as it can have a very small window of opportunity to help shape the CEFC's investment mandate and make suggestions for who should be on the boards of both independent statutory authorities. We need to get these right and get them moving to give big solar and all the other technologies the market signal they need to start building.

At the same time, I have every hope that the initiatives we have instigated - from requiring the Australian Energy Market Operator to prepare scenario planning for 100% renewables to tasking the Ministerial Council on Energy with examining long overdue energy market reform to prioritise demand side management alongside supply side - will make bureaucrats and politicians alike sit up and think about the way our energy grid and markets work. We all need to support this process by gathering evidence and examples of how energy markets operate here and elsewhere in the world to stimulate innovation rather than stifle it, and bring it to the table here.

On that issue of driving the energy revolution and the opportunity to move to 100% renewables, I am determined to focus political attention next year on the grid infrastructure. The grid has been overlooked for too long in our debate. It clearly isn't a sexy topic, but everybody knows that, if we plan in the national interest, make the right investment decisions now and put the right management policies in place, we will make the transition to renewable energy and energy efficiency easier, faster and less expensive.

Another major area of focus for the Greens next year will be the intersection between the food, water, energy and climate crises - namely, food security. We need to maximise food production and export by lifting agricultural productivity in the face of escalating climate change and oil depletion. Competition for land and water between agriculture, coal seam gas, carbon storage, urbanisation and land grabs from foreign governments must be resolved. The carbon farming initiative and the biodiversity fund have been designed in such a way that they can guide decisions on land use and encourage decisions that will benefit the climate, our biodiversity and our farmers, indigenous communities and other land managers. Again, appointments to the board will be critical, as will be public work to create the space for that board to do its job.

There is a myriad of reviews that have been negotiated through this agreement, such as the Productivity Commission's ongoing analysis of the compensation package to polluting industry. We all need to be gathering evidence, participating in and scrutinising these reviews to get the best possible results from them.

All told, the package we are legislating today is a very big first step. Where the old CPRS that we rejected was a full stop at the end of the campaign to tackle climate change, this package is an opening paragraph. We have a lot of work to do in the months and years ahead to make the best use of the opportunities we have created.

Only then will the story we have started to write today truly become the transformative narrative that underpins our future.

End the shame of locking up Indonesian children

Blog Post | Blog of Sarah Hanson-Young
Tuesday 15th November 2011, 10:27am

If an intellectually-disabled Australian boy was detained in an Indonesian prison without charge for two years before being quietly released and deported, Australians would be fuming. They'd be as upset as they are over the boy in a Bali prison on drugs possession charges.

Yet this happened recently to an Indonesian boy who spent two years inside Sydney's Silverwater prison on people smuggling charges. The 15-year-old has been sent back to Pantar island in Timor. The Australian government hoped you wouldn't notice that it is targeting children and not the organisers of people smuggling syndicates.

This orphan was not the first Indonesian child detained in an Australian adult prison, and he won't be the last. Lawyers say there are between 40 and 50 Indonesian minors in custody in Australia, some without charge, accused of people smuggling.

Australian authorities continue to detain them while using outdated and internationally-discredited wrist x-ray techniques to determine their ages. Indonesian consulate officials told me 136 minors have arrived in Australia as boat crew since 2008; 33 have had their cases dropped by prosecutors or were found to be minors, a further 26 are in remand while their ages are checked.

One barrister, Mark Plunkett, says his client, aged 15, was sexually abused in the Arthur Gorrie adult prison in Brisbane. The boy has since returned to Indonesia, but has been clearly damaged by his experience. (Mr Plunkett also acted for three Indonesian boys who were returned home from Brisbane after their cases were featured in The Age in June this year.)

Late last week, a Western Australia judge ruled an Indonesian boy accused of people smuggling was a minor. The 14-year-old spent nearly two years in Perth's Hakea prison because Australian authorities said the wrist x-rays put his age at 19. He remains in an adult prison. Australia's Home Affairs Minister, Brendan O'Connor, says the government has no plans to drop the wrist x-ray techniques.

International law is clear on where Australia's obligations lie: no child should be detained in an adult prison. The Gillard government's stance contravenes what Australia promises to do under the Convention the Rights of the Child, as well as domestic criminal laws. Children's rights are universal and cannot be negated merely because the Australian government wants to attack people smugglers.

I'm not in the business of defending people smugglers, I am however in the business of standing up for the rights of children - whatever country they are born in - and the fact is these children are not the people smugglers, they are as dispensable to the organisers as the leaky boats they sail to our shores.

Last Friday, a Senate inquiry into the government's Deterring People Smuggling Bill heard from legal experts that there are many problems with the proposed retrospective criminal law.

The bill misses its intended target, because the people smuggling leaders are not caught and prosecuted, only the small fry are.

The public defender acting for more than 50 accused people smugglers in Victoria - including the Court of Appeal test case the government is trying to scuttle with its bill - told the committee that the Australian community would be aghast if they knew how Indonesian men, some of them just boys, get duped into becoming boat crew on asylum seeker vessels.

Saul Holt from Victoria Legal Aid said uneducated and poor fishermen are offered American dollars to join what they believe are fishing or cargo trips. They have no idea of the destinations, no compasses, and often are surprised to find themselves swapped onto the leaky boats out at sea while the organisers flee to Indonesia. The experts told the committee that the people smuggling charges under the Bill, with mandatory sentences, are not a deterrent and breach the rule of law with their retrospectivity back to 1999.

The money of Australian taxpayers is being wasted. Why should they continue paying for the incarceration and prosecution of Indonesian children? That money would be saved if children were treated as children and not imprisoned with adults. The onus ought to be on Australian police and prosecutors to prove the accused are adults, not for the defendants' legal teams to fly to Indonesia to interview their families and get birth certificates because the Australian authorities don't believe their claims.

If Australia had a Commonwealth Commissioner for children and young people, they could act as the legal guardian for these Indonesian children. I have a bill before the Parliament to create this post, but it has yet to be supported by the major parties. Until then, the government should urgently start an independent inquiry into why children are continuing to be detained. It must end this international shame.

First published in The National Times on Tuesday, 15 November 2011.

 

 

Australians pay as Labor digs a hole for itself on tax

Blog Post | Blog of Sarah Hanson-Young
Tuesday 22nd November 2011, 8:54am

The "year of decision and delivery" is quickly coming to an end and the Prime Minister is determined to get the government's mining tax passed through the House of Representative this week before the summer break of Parliament. The Senate would then deal with the legislation when Parliament resumes in 2012.

In this desperation, in the PM's own words "to get the job done", the mining tax proposed by the government has been watered down to appease the mining barons. Australians will rightly be disappointed that the government's proposal is not snaring a fairer share of the biggest economic boom in the country's history. For that you can thank the ALP's power brokers. When Kevin Rudd was prime minister, he and Treasurer Wayne Swan cherry-picked some of the more than 100 recommendations of the Henry review with which they agreed into the taxation system, and ignored the others.

Former Treasury secretary Ken Henry suggested a "uniform resource rent tax should be set at a rate of 40 per cent". He pointed out that Australia leads the world with its reserves of "brown coal, lead, mineral sands (rutile and zircon), nickel, silver, uranium and zinc, and the second largest reserves of bauxite, copper, gold and iron ore (contained iron)".

We know what happened. The mining industry funded a multimillion-dollar advertising and lobbying campaign using influential media voices that ultimately cost Rudd his prime ministership and scrapped the super profits tax.

Instead of the 40 per cent tax applying to all mining companies and all of Australia's mineral wealth, Labor's proposal is now effectively a 22.5 per cent tax and covers only coal and iron ore projects.

The revised tax was negotiated between Prime Minister Julia Gillard and three mining behemoths, which gave it their blessing. Of course they did - they're paying less tax than Treasury's original proposal, and it includes fewer projects. In fact, the deal cut with the big mining companies will cost Australian taxpayers $100 billion over 10 years of forgone revenue - big money at a time when the government is mooting service and funding cuts to keep the budget in surplus.

The mining rent tax has already been diluted too far and means Australians are missing out on a better share of the use of their country's raw materials. A share of the tax should be going into a sovereign wealth fund - another idea advocated by Treasury but ignored by Labor. A fairer tax take could cover areas that have been neglected, such as a national dental care scheme and a high-speed rail system.

The mining tax should be fairer and it should apply to gold and uranium. As my colleague and Greens member for Melbourne, Adam Bandt, explained earlier this month: "The inclusion of the gold would generate at least $1.8 billion in revenue over the next decade." But, of course, the government lacks the courage to stand up to the mining companies.

Gillard has alerted the ALP national conference that she wants Australia to begin exporting uranium to India. The Greens will oppose any such plan. Several Labor MPs have been critical of the Prime Minister's proposal and will speak out during next month's conference. Alas, I am yet to hear anyone from Labor advocating that uranium be taxed.

The Greens are prepared to amend the government's mining tax to ensure it is fairer. The reforms to superannuation and the corporate tax rates that are linked to the tax revenue also need refining, and the Greens are prepared to help the government.

First, we should use the opportunity to review the superannuation tax concessions. Increasing the level of superannuation is vital for the welfare and financial security of Australians, but it also must be reformed to include progressive rates of superannuation taxation.

Second, the government should be considering the needs of small businesses - the real lifeblood of the Australian economy - before handing out tax concessions to the big corporations such as the big four banks.

Small business operators deserve a cut in the tax rate by 5 per cent to 25 per cent - and if the government scrapped the 1 per cent cut to the corporate tax rate they could afford it. Cutting the banks' rate by 1 per cent would hand the banks another $4 billion over the next decade. The big four banks have recently announced a combined annual profit of more than $25 billion. Do we really need to be assisting them with cuts, while small businesses deal with rising costs?

These are all commonsense proposals and should be taken up. Rather than a fair tax on largely foreign companies extracting our mineral future, this week it looks like the government will only deliver Australia one that resembles a tattered coat.

First published in The National Times on Tuesday, 22 November 2011.

 

Australians pay as Labor digs a hole for itself on tax

Blog Post | Blog of Sarah Hanson-Young
Tuesday 22nd November 2011, 8:55am

The "year of decision and delivery" is quickly coming to an end and the Prime Minister is determined to get the government's mining tax passed through the House of Representative this week before the summer break of Parliament. The Senate would then deal with the legislation when Parliament resumes in 2012.

In this desperation, in the PM's own words "to get the job done", the mining tax proposed by the government has been watered down to appease the mining barons. Australians will rightly be disappointed that the government's proposal is not snaring a fairer share of the biggest economic boom in the country's history. For that you can thank the ALP's power brokers. When Kevin Rudd was prime minister, he and Treasurer Wayne Swan cherry-picked some of the more than 100 recommendations of the Henry review with which they agreed into the taxation system, and ignored the others.

Former Treasury secretary Ken Henry suggested a "uniform resource rent tax should be set at a rate of 40 per cent". He pointed out that Australia leads the world with its reserves of "brown coal, lead, mineral sands (rutile and zircon), nickel, silver, uranium and zinc, and the second largest reserves of bauxite, copper, gold and iron ore (contained iron)".

We know what happened. The mining industry funded a multimillion-dollar advertising and lobbying campaign using influential media voices that ultimately cost Rudd his prime ministership and scrapped the super profits tax.

Instead of the 40 per cent tax applying to all mining companies and all of Australia's mineral wealth, Labor's proposal is now effectively a 22.5 per cent tax and covers only coal and iron ore projects.

The revised tax was negotiated between Prime Minister Julia Gillard and three mining behemoths, which gave it their blessing. Of course they did - they're paying less tax than Treasury's original proposal, and it includes fewer projects. In fact, the deal cut with the big mining companies will cost Australian taxpayers $100 billion over 10 years of forgone revenue - big money at a time when the government is mooting service and funding cuts to keep the budget in surplus.

The mining rent tax has already been diluted too far and means Australians are missing out on a better share of the use of their country's raw materials. A share of the tax should be going into a sovereign wealth fund - another idea advocated by Treasury but ignored by Labor. A fairer tax take could cover areas that have been neglected, such as a national dental care scheme and a high-speed rail system.

The mining tax should be fairer and it should apply to gold and uranium. As my colleague and Greens member for Melbourne, Adam Bandt, explained earlier this month: "The inclusion of the gold would generate at least $1.8 billion in revenue over the next decade." But, of course, the government lacks the courage to stand up to the mining companies.

Gillard has alerted the ALP national conference that she wants Australia to begin exporting uranium to India. The Greens will oppose any such plan. Several Labor MPs have been critical of the Prime Minister's proposal and will speak out during next month's conference. Alas, I am yet to hear anyone from Labor advocating that uranium be taxed.

The Greens are prepared to amend the government's mining tax to ensure it is fairer. The reforms to superannuation and the corporate tax rates that are linked to the tax revenue also need refining, and the Greens are prepared to help the government.

First, we should use the opportunity to review the superannuation tax concessions. Increasing the level of superannuation is vital for the welfare and financial security of Australians, but it also must be reformed to include progressive rates of superannuation taxation.

Second, the government should be considering the needs of small businesses - the real lifeblood of the Australian economy - before handing out tax concessions to the big corporations such as the big four banks.

Small business operators deserve a cut in the tax rate by 5 per cent to 25 per cent - and if the government scrapped the 1 per cent cut to the corporate tax rate they could afford it. Cutting the banks' rate by 1 per cent would hand the banks another $4 billion over the next decade. The big four banks have recently announced a combined annual profit of more than $25 billion. Do we really need to be assisting them with cuts, while small businesses deal with rising costs?

These are all commonsense proposals and should be taken up. Rather than a fair tax on largely foreign companies extracting our mineral future, this week it looks like the government will only deliver Australia one that resembles a tattered coat.

First published in The National Times on Tuesday, 22 November 2011.