Delegates at the Diggers & Dealers mining forum have been urged to vote for the Liberal Party, to ensure the resources tax is scrapped.

To wide applause during his opening address in Kalgoorlie this morning, West Australian mining identity and conference chairman, Barry Eldridge launched a strong attack on the Labor government’s mining tax plans which he described as “economic terrorism”.

The annual Diggers & Dealers conference has long been an apolitical forum but the federal election campaign meant politics dominated Mr Eldridge’s speech. It comes as the Association of Mining and Exploration Companies today launches fresh television advertisements seeking to stop the mineral resources rent tax.

“We must support a government that commits to allowing the industry to be strong and vibrant so it can continue to be as positive a contributor to the broader community as it is today,” Mr Eldridge said.

“We need one of the political parties to openly adopt the industry and recognise its needs and allow it to retain its earnings for future growth.

“I note at this point that the Liberal Party has committed to repeal the tax – no prize for guessing where my vote will be going and I urge all of you to do the same.”

Mr Eldridge rejected government claims that a resource rent tax was needed to better share the benefits of the mining boom.

He said no company distributes all or even most of its profit to shareholders.

“Much goes into asset development, exploration and maintaining the financial well being of the company so it has a sustainable future through periods of strong and uncertain commodity prices,” he said.

“The amount of equity and borrowings a major resource project requires means that, due to the small Australian economy, much of the financial resources required must be sourced from overseas.

“Realistically this means that major companies must have international investors and in many cases a majority of international shareholders.

“Without them we would not have the major projects and the economic benefit. Why should they not get an appropriate return for the investment and risk they take when they support what is historically known as a cyclical industry.

“At the moment we are lucky that we are going through times of great commodity prices. I am not sure when, but there will also be times when those prices are not so substantial.”

(Source: TheAustralian.com.au)