Australian Miners Tax Campaign Fraudulent - Greens Leader

18th Jun 2010 02:08

CANBERRA (Dow Jones)--A campaign by mining companies against a proposed tax increase on mining super profits is fraudulent and the industry risks losing public support the longer it continues, Greens leader in Australia's Parliament Bob Brown said Friday. "It's a fraudulent campaign by the big mining barons who simply want to keep the rake-off, rip-off profits that they're making out of the minerals resources boom worldwide out of the property of Australians," he told reporters. In particular, Brown criticized advertising in Friday's newspapers by Rio Tinto Ltd. (RTP) that he said suggested the company is running at a loss in Australia. The advertisement says that in the past 10 years Rio Tinto has earned A$37.4 billion in after tax profit in Australia and invested A$38.4 billion through capital spending and acquisitions. "If it's indicating it's running at a loss in the country, why the hell is it worried about a super profits tax. It doesn't add up. It isn't logical," Brown said. "This ad, subsidized by taxpayers money, doesn't add anything but confusion to the debate about the mining tax and is treating Australians like mugs," he said. The proposed resource super profits tax has been met with furious opposition from the mining sector since it was unveiled May 2. The government and the industry are negotiating details of the tax, which is planned to be introduced in 2012. Currently, the Labor Government doesn't command a majority in the Senate and needs to rely on the support of the Greens and independent senators to pass any legislation. The opposition Liberal-National Coalition opposes the higher tax on mining. Separately, Brown said he thinks a general election will be called for around November, about the end of the Labor Party's three-year term. Voter surveys suggest the Greens could hold more Senate seats after the election. The Greens want revenues from any super profits tax to be placed in sovereign wealth fund. -By Ray Brindal, Dow Jones Newswires; 612 62080902; [email protected] (END) Dow Jones Newswires June 17, 2010 21:08 ET (01:08 GMT)