Mad King celebrates unprecedented mining rorting

As reported yesterday, Australia posted a record trade surplus of $17.7 billion in June, with exports rising by 5.1% to $61.5 billion. This increase in exports was driven by surging LNG and coal exports, which both hit record highs over 2021-22:

Commodity exports

Record high LNG and coal exports in 2021-22.

On the back of soaring prices owing to the Russia-Ukraine war:

Commodity prices

Coal and natural gas prices soar on war.

Resources Minister Madeleine King has celebrated the result, telling The AFR how important the resource sector is to the economy and living standards:

Resources Minister Madeleine King said the June trade result showed the importance of the resource sector to the economy and in continuing to underpin high living standards.

“This data also highlights, in particular, how Australia has become a world leader in the supply of critical minerals”…

“Australia’s rich endowment of critical minerals and rare earths will help us and our global partners meet our ambitions to reach net-zero emissions by 2050.”

How is this a good result for Australians? The profit spoils are going to foreign owned resource companies, while Australian households and businesses are paying exorbitant prices for both gas and electricity.

It is, therefore, a negative boom for the Australian people. We are paying higher prices than ever for energy that is pulled out of the ground here for next-to-nothing.

Only in the twisted cartel world of LNG and gas does an export boom make actual Australian citizens poorer, by raising our cost of living and hollowing-out our economy.

The Albanese Government must install domestic reservation, super profits taxes, and/or export levies pronto.

Otherwise we will continue to be fleeced by foreign-owned energy cartels.

Unconventional Economist

Comments

  1. John Howards Bowling Coach

    I think this continuation of the practice of giving away the national resources will have to stop and might actually stop this time around because the LNP ran up such an enormous national debt that the government now actually need to review all revenue options. In the so called good times, idiots like Peter Costello handed out tax cuts like lollies and the Wayne Swan turn at the controls really didn’t do anything to change it. Foreign Investment is a polite term to describe selling off the country. In fact when it comes to the energy sector the foreign raiders hardly even make much of an investment here. Their capital spend here in Australia as a portion of their largely non taxed profits is really quite small. I struggle to understand (aside from the obvious corruption) how the ALP are going to be able to let it go on. It is such a victimless blow to the foreign raiders to just make them pay tax, they aren’t voters at the end of the day and if the ALP are smart they will blitz the media ahead of the announcement to paint a picture for the voters at just how badly the LNP let the great Aussie Resources rip off get, so there is no sympathy when the mining and energy lobby hit the airwaves as they did when Kevin 07 suggested they needed to make a contribution, I mean surely the ALP aren’t too scared of what happened last time, to not learn how to do it better this time around. They owe that much to the voters who delivered them the privilege of forming government.

  2. We’ve all been here before, probably more times than we know….
    “The real collapse of our currency began when it became evident that certain industrial circles were more powerful than the government.” – Adam Fergusson, When Money Dies: The Nightmare of the Weimar Collapse

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