Opening the 2014 AMEC Convention in Perth this morning, Bennison called for certainty for the resources sector to address an uncertain cost structure.
“Governments must resist the temptation to load the industry with additional financial burdens such as being proposed through a number cost recovery processes, hikes in fees and charges well beyond inflation and increases in royalties, to name but a few,” he said.
“Our industry takes enormous risks in order to discover a viable deposit – one in 100 – and the likelihood of success of taking this to a world class deposit is one in 1000.
“There is no room for extracting further costs from an industry that contributes its fair share of taxes, royalties including PAYG, payroll tax, stamp duties and a range of levies, fees and charges.”
While Bennison was confident the worst was over, he said AMEC was working with federal and state governments to initiate policies to return confidence to the sector.
Meanwhile, Prime Minister Tony Abbott sent a video message to the convention, recognising the large contribution of the resources sector to the Australian economy.
“I am committed to doing everything I reasonably can to help your sector succeed,” he said.
He promised to get rid of “bad taxes” and let the industry “get on with it”
Western Australian Mines and Petroleum Minister Bill Marmion also talked up the reforms implemented by the current state government, including approvals and safety reforms.
“At the top of the list of DMP’s successful risk-based reform is the introduction of the Mining Rehabilitation Fund, or MRF, which was formally implemented in July last year,” Marmion said.
For the last 12 months the MRF has been voluntary but today becomes compulsory.
As of yesterday, 95% of tenement holders had complied but holders of about 1000 tenements can expect to receive $A4000 fines.
“The MRF and its enabling legislation are widely regarded as world-leading examples of best practice in governance and it is being studied internationally,” Marmion said.
“That’s a real win-win scenario and a great example of how innovative reform is good for business, community and the environment.”
