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2010-12-24

Federal Labor should be wise on MRRT with the states

Comments on Paul Kelly “Labor can't afford another humiliation”, 24/12/2010, http://www.theaustralian.com.au/news/opinion/labor-cant-afford-another-humiliation/story-e6frg6zo-1225975606789

Well, Paul, you have set a bar that is too high for Labor.

Another humiliation, unfortunately, is on the way and is inevitable, that is the fight with the states on state mining royalties.

Unless Gillard/Swan and the federal government retreat immediately from their current attempt to force the states to bend to its will on mining royalties, they may lose even more including their current MRRT to the states, should they mount a constitutional challenge on the constitutional validity of the federal government to impose that tax.

The fundamental fact is that the right to royalties or mineral rents as the MRRT says, belongs to the states, unless the land belongs to the Commonwealth.

Gillard and Swan need to be much wiser to launch a fight with the states to pick up royalty revenue from the States.

They have been silly on this for some time and now they need some sanity in their own minds.

What does the entire above mean? It means that another humiliation is already on them, sadly to them.

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