Labor is all about cronies all of the time:
Mining giant BHP has entered the political war between the resources sector and the Albanese government, defending its role in the Australian economy and claiming the amount of tax it paid last financial year was equal to half the entire annual funding of the public hospital system.
The rare intervention by BHP into a brawl between the Minerals Council of Australia and Anthony Albanese marks the company’s most significant public response since Labor’s Resources Minister Madeleine King launched a scathing attack on the company two weeks ago.
It also signals an intention from BHP to back the minerals sector’s industry body in the push back against the Prime Minister’s claims that the mining sector needed to de-escalate the conflict over Labor’s industrial relations reforms.
In a statement released on Tuesday night, BHP’s Australia president, Geraldine Slattery, said the company was a significant contributor to national GDP, injecting $50bn into the Australian economy last financial year with $14.5bn in payments to governments through taxes, royalties and other payments.
This fight is about unionising the Pilbara, hardly national interest priority numero uno. Market forces already have miners very well paid.
The mining sector does not pay its fair share of tax; nothing like it given the resources are non-renewing, so if you want to attack it, then go after a larger slice for taxpayers.
Yet, even that would be very poorly timed. We are about to pass into the cost curve shakeout phase of the commodity cycle, in which profits are crushed.
Indeed, if the Albanese government had the slightest grasp of what matters, this political capital would not be spent on the mining majors at all.
It would be far better invested in reining the east coast gas cartel, which is destroying Albo’s government via its inflation shock.
Domestic gas reservation and/or export levies would deliver huge bill relief for every household and business east of WA, as well as for energy-intensive building materials.
It would also be greeted with great cheer by the populace, delivering a political dividend, and wedge Dutton’s nuclear nightmre.
There is no strategy in attacking BHP at the is juncture. No political consideration. No policy formulation. It’s a free kick for the opposition:
Peter Dutton will warn that the economy and resources sector will be smashed if the teals or Greens help Labor cling to minority government, promising mining chiefs a Coalition government would be the “best friend” they’ve had, as senior mining figures privately declare a hung parliament would be an “unmitigated disaster”.
The Opposition Leader on Wednesday will launch his strongest attack on Anthony Albanese’s claim he is a pro-resources Prime Minister and accuse him of allowing activism to undermine mining because the ALP is worried about losing inner-city seats.
It’s just favours for union mates.
