Atlas Iron chairman, David Flanagan, has today slammed Labor Leader, Kevin Rudd, for declaring the “China resources boom over”. From Mining Australia:
“It’s so huge, that’s why it’s so frustrating to have someone like Kevin Rudd call the end of the resources boom because these guys can make it self-fulfilling,” Flanagan told ABC radio in Perth.
“If they actually diminish confidence in our sector beyond what is, in reality, a wonderful place to invest, they can deliver an end to a resources boom by telling everyone it’s over.”
He said Rudd’s comments were “pretty destructive” and some thought and consideration would have added value.
I’m sorry, but this is partisan rubbish from Flanagan. Just a fortnight ago, the Liberal Premier, Colin Barnett, made similar pronouncements in declaring the “golden age” of high iron ore prices and rising investment over as China’s economy began the long process of rebalancing. Yet, where was Flanagan’s protest about Barnett’s comments?
Kevin Rudd and Colin Barnett have simply stated the obvious and what any sensible commentator already knows: that the mining boom has passed its peak and Australia needs to find other avenues for growth, incomes and employment. Talking the mining boom up or down does not change these dynamics.
Better to face the future with our eyes open rather than with our head buried in the sand.
unconventionaleconomist@hotmail.com
