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Resource Rich or Dirt Poor?
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The revamped mineral resource rent tax is about to be debated in parliament and it's likely to stir up passions about the role of the mining industry in the Australian economy. The tax itself aims to secure the public a bigger share of the super profits being earned from exports of coal and iron ore, but the fate of the tax depends on the vote of independent MPs. Arguments for and against the tax hinge on whether the Australian government has a moral right to claim a larger share of the action during a mining boom. But there is a bigger question at stake: how should Australia spend its mining windfall? Indeed, should be spending it at all, or should we be stashing the cash in a sovereign fund for when the mining boom comes to an end (and following Canberra's own advice to neighbours like East Timor and PNG)? And what social responsibilities do mining companies towards the communities affected by the mining bonanza? Today's conversation was recorded on Saturday 8 October at the 2011 Adelaide Festival of Ideas.
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