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Issue No. 268 | 17 June 2005 |
Courting Public Opinion
Interview: The Baby Drought Industrial: Lies, AWAs and Statistics Workplace: The Invisible Parents History: Bruce�s Big Blunder Politics: All God's Children Economics: Spun Out International: Shakey Trials Legal: Civil Distrubance Review: Crash Course In Racism Poetry: You're Fired
Andrews Bends Over for Big End
The Locker Room Parliament The Soapbox
Once Upon A Time In America The Truth Is Out There History Repeats Cash Cow On Private Tax Farm
Labor Council of NSW |
News Royalty Held Hostage in WA
The racket has been going on for decades with BHP and Rio Tinto paying discounted royalties under a deal thrashed out with a conservative government in the 1960s, despite a 70 percent jump in iron ore prices this year, alone. The AMWU is back state government calls for the world's two biggest mining companies to pay the same rates as other operators. "The non-payment of appropriate royalties has provided another way for these companies to avoid investing in WA," AMWU state secretary, Jock Ferguson, said. "We already have a major problem with minerals companies exporting as many jobs overseas as possible. "While these companies have taken billions of dollars out of WA, they repeatedly short change the community on jobs, opportunities and now facilities and services." He said big mineral companies BHP Billiton, CRA and Woodside had taken conscious decisions to export more than 2000 skilled jobs out of the state. Ferguson was backing State Development Minister, Alan Carpenter, who has drawn hostile fire from the minerals companies for suggesting they pay royalties at the same rates as competitors. The rationale for giving BHP and Rio Tinto, now CRA, discounts was that, at the time, there was little demand for WA ore. BHP was also encouraged by rent-free access to thousands of Pilbara hectares for 15 years. In the past five years, however, demand and price for fine ore has rocketed. BHP sales to China, alone, have gone from $US600 million to $3.25 billion in the space of three years. BHP and CSR are demanding price increases of up to 100 percent from buyers. "It's time these companies were forced to develop strategies that ensure investment in WA," Ferguson said. "We want local content strategies that ensure more fabrication and manufacturing is done in WA so the community receives some tangible benefits from our resources.
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