In a budget submission to NSW Treasurer Eric Roozendaal, the NSW Minerals Council also revealed that government should be prepared to partner with the state’s $A23 billion minerals industry to foster its growth.
“The mining industry is holding ongoing discussions with the NSW government, which has shown it is acutely aware of the potential impacts of this proposed new tax on mining here,” NSW Minerals Council chief executive Nikki Williams said.
“We are hopeful they will make the case for fair and genuine reform that won’t jeopardise the $17 billion of investment currently on the books in NSW.”
Williams said business and industry were “essential partners” for the government to generate the economic growth and revenues needed to provide public services.
“We’d much prefer to see governments encouraging industries and businesses to grow, rather than taxing them into oblivion,” Williams said.
“The temptation to target industries that require long run, high-risk investment, to address short-term fiscal problems must be avoided.
“To that end, we again welcome the recent announcement by the Treasurer that there will be no increase in royalties in this budget.
“The NSW government must focus on policies that create a positive environment for investment, including in the mining industry.
“In some circumstances like exploration programs, limited government investment will assist. These investments will reap the NSW government long-term, steady and reliable revenue streams.”
Williams cited the example of the expanded capacity at the Port of Newcastle which would, according to NSW Ports Minister Paul Macleay, “deliver up to 25,000 jobs in the Hunter over the next six years and generate an additional $500 million of coal royalties each year”
“It is a perfect illustration of the long-term benefits of encouraging business and investment,” Williams said.