COMMERCIAL Petroleum and Minerals Bill criticised

Press, Volume CXIV, Issue 33513, 19 April 1974, Page 7

COMMERCIAL Petroleum and Minerals Bill criticised

,V Z. Fo sx A.sxooatioii— ('■opiinskt MELBOURNE. Sir yiaurice Mawby, retiring chairman of (onzinc Riotinto of Australia, today criticised the Federal Government's proposed Petroleum and .Minerals Bill, and defended the level of tax paid by West Australian ore miner Hamerslev Iron.

"A number of bills which were presented to Parliament before the recent double dissolution could adversely affect the mineral industry. For example, the Petroleum and Minerals Authority Bill has in our view some serious deficiencies.” Sir Maurice went on: — “If the popularly elected Government decides to enter rhe mineral industry as a competitor with companies like our own, that is a decision we must accept. “However, if the industn and the Government are to work together effectivelv. ii is essential that two basic principles be observed, “These principles are: 1. Anv Government authority or statutory corporation should be placed on an equal competitive footing with all other companies operating in the same industry. 2. The Government Department responsible for the over-all review of the industry’s relationship

! with the Australian community at large must be objective and neutral in ils dealings with both the private enterprise companies and anv Government Authority or Statutory Corporation. "We believe these principles are not observed in the' proposed legislation, which should be abandoned if it is 'o operate in the long term inivrest of the country as a whole, “ I here have been some recent comments about the level of tax payments made by Hamerslev. "In order to assist mining projects to get started the Government defers its claim on tax payments. “But it is important to recognise that this is only a deferment of taxation. Hamerslev will later be paying correspondingly more than ihe normal rate in relation io ils earnings, when the benefits of accelerated depreciation -are eliminated. "Australians must look at the total results achieved.

Projects like Hamerslev are now established and will benefit Australia for many years ahead.”