Mining sedition eats itself in TV debacle

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From the ABC:

The Chamber of Minerals and Energy (CME) has pulled an anti-mining tax television advertisement after one of the participants complained he had been misrepresented.

The advertisement was designed to discredit a proposal by the WA Nationals to charge Rio Tinto and BHP Billiton a $5 rental fee for every tonne of iron ore they produce, up from the current rate of 25 cents per tonne, which was set in the 1960s.

It features mine workers and business and community representatives from around WA, including Busselton Mayor Grant Henley, who was pictured in front of the city’s airport, and recites the line “no new investment, no new projects, no new jobs”.

But Mr Henley said he did not know his comments would be used in political advertising and that he had been taken out of context.

He wrote an email to the WA Nationals explaining his position.

“At the time of filming I flatly refused to make scripted comments that were political in nature,” the letter read.

“I only focussed on the importance of FIFO (fly-in fly-out) to the airport and community broadly.

“Regrettably, in hindsight, this has been taken somewhat out of context.”

Mr Henley went on to explain that Busselton Council did not have a formal position on the taxation of the resources industry, and his comments in the ad were intended to be more general in nature about the benefits of a fly-in fly-out (FIFO) workforce to the local community.

“I have asked staff to check the waiver and see if our approval can be rescinded and my comments edited from the ad,” Mr Henley said.

WA Nationals leader Brendon Grylls said Mr Henley had been misrepresented and misled by the CME.

“This goes to trust and it goes to who the people of Western Australia should believe,” Mr Grylls said.

“The Chamber of Minerals and Energy, their leadership on behalf of BHP and Rio Tinto, are prepared to do or say anything to get a cheap ad onto the TV.

“You would expect if you’re going to bomb the electorate with those messages that the messages could stand up to scrutiny.”

However CME chief executive Reg Howard-Smith said Mr Henley was properly briefed about the nature of the advertisement, and signed documents permitting the use of his image and comments.

“It is unfortunate that Mr Henley has now decided to withdraw from the advertisement after being pressured by the WA Nationals,” Mr Howard-Smith said.

“Mr Henley consented to appearing in the advertisement featuring real WA workers highlighting the problems with the WA Nationals job-destroying iron ore tax.”

He said Mr Henley was provided with a script before filming, was permitted to make his own alterations and was also provided with a transcript after the shoot.

“Mr Henley was well aware of the nature and content of the proposed advertisement, but his wishes will be respected and he will be removed from the advertisement.”

The advertisement will be pulled from the air until the alterations can be made, and Mr Henley said he did not intend to take the issue any further.

Quite right, Mr Grylls. The miners are lying. They can afford the levy. If priced correctly, at $2.50, it will not impact investment, and it is entirely appropriate to be increasing the tax take when the miners are printing money on margins far beyond the norm. That is, reaping economic rents from digging up a finite public resource.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.