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 Hunter loses in tax brawl 

Hunter loses in tax brawl

24 Nov, 2011 04:55 AM
WHILE Australia ponders the implications of the federal mineral resources rent tax, the Hunter finds itself a potential loser - the meat in the sandwich between state and federal governments scoring political points off one another.

It's worth recounting the moves in the game so far, because they reflect no credit on either side of politics and suggest that Hunter people matter little in the thinking of either Canberra or Sydney.

For a start, consider the Gillard government's moves to placate the big mining corporations after the political assassination of former prime minister Kevin Rudd. Pressed by the miners during negotiations over the watered-down mining tax, Labor agreed - incredibly - to indemnify the corporations against any and all future increases in state mineral royalties.

This naive error amounted to handing a blank cheque to state governments, which could raise their royalties in the knowledge that Canberra would foot the bill.

NSW Premier Barry O'Farrell, singing from the anti carbon tax song sheet of his federal Liberal leader Tony Abbott, wasted little time seizing the opportunity. When the state government lifted its royalty rates on coal it noisily insisted it had to do so to recoup losses caused by Labor's carbon tax.

At this point it must be recalled that the federal government had promised that the Hunter would receive a proportionately fair allocation of the $6 billion regional infrastructure fund that is being financed by the new minerals tax.

Given that history has amply demonstrated the NSW government's apparent abhorrence of the idea of returning to the Hunter any of the royalties it takes from the region - currently $3.5 million a day - the federal promise represented an improvement for Hunter fortunes.

That dream may be dashed, however, by the federal government's response to Mr O'Farrell's royalty rise stunt.

Labor has threatened to retaliate against NSW by withholding the state's share of the regional infrastructure fund.

That would mean the money that Canberra should have allocated to the Hunter would be effectively transferred direct to Sydney, thanks to the naivety of federal Labor and the machinations of Macquarie Street.

It is a bitter reflection that both sides of politics in both the relevant major capital cities appear prepared to permit the Hunter Region to become collateral damage in their clumsy partisan warfare.

Treat for art lovers

MANY wonderful items in Newcastle Art Gallery's enviable collection are too seldom seen, for the well-known reason that the gallery lacks the display space to show more than a fraction of its holdings.

Next month's exhibition in the city of 20th century Australian masterpieces will bring some of the best works into the light to hang alongside counterparts from the collection of the Art Galley of NSW.

This will be an exciting opportunity for Hunter people to see some of the finest works in public ownership in NSW side by side in Newcastle's own gallery. It's a coup for the gallery and a treat for art lovers.

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Date: Newest first | Oldest first
By describing the Hunter as collateral damage, you are implying that we are accidentally disadvantaged by this feud. I believe that these actions are well thought out deliberate plans to continue the withholding of much needed investment in this area. As much as we can blame the new and previous State Governments, I feel it is a gross breech of faith by the Federal Government.
Posted by tuffasnails, 24/11/2011 6:20:49 AM, on The Herald
Give the people of the Hunter and Northern NSW it's own state. ENOUGH IS ENOUGH, why should our town's suffer while our royalties fill the pockets of Sydney? No one will listen to the Hunter or Northern NSW until we take a stand!!!! Who is with me?
Posted by Sally, 24/11/2011 7:04:57 AM, on The Herald
( hunter loses in tax brawl )

once again we're the sacrificial lamb in dirty, greedy, egotistical politics.

and you know what, we'll just keep right on letting them get away with it.

a good story, in my opinion.

Posted by just a thought, 24/11/2011 7:53:13 AM, on The Herald
Come on Hunter residents, lets start up a new state called Hunter State and tell the federal and NSW Governments we are not going to take their big boy bully tactics, come on mining unions show these politicians you have the same guts and fortitude your fathers had. Give em 48 hrs to start with and keep increasing the strike time till we get the correct answer $$$ for this Hunter region that we work for.
Posted by jimbob, 24/11/2011 8:31:11 AM, on The Herald
Sally, who is with you, you ask? Well, mostly nobody except for Machiavelli and his numerous fictitious screen names.
Posted by Seven of eight, 24/11/2011 4:15:20 PM, on The Herald
This is a consequence of the CCDT (Combet Carbon Dioxide Tax), which threatens the closure of the Hunter Aluminium Smelters, which take significant baseload power from the power stations.

Sure, there are a few years of offsets but these stations are very long-term investments, run down during Labor's years as a result of shoddy maintenance and only of strategic importance to the Chinese as part of their secret Domino Plan (i.e. hit manufacturers like OneSteel and the rest will fall).

The price will be crap, like the last ones sold by NSW Labor. The result will be devastating.

Posted by felicity, 25/11/2011 5:24:23 AM, on The Herald
@ 7/8.... I'm no sock puppet. I would be keen to break away from the Sydneycentric state of NSW if it was an available option. However, it will never happen because the majority of the people people that would make this decision are based in Sydney and need the money the Hunter generates.
Posted by judgedredd, 25/11/2011 11:20:30 AM, on The Herald
judgedredd, I haven't dismissed the 'utopia state' notion out of hand either, as a matter of fact. Better and more equitable decisions could indeed be made by a capital centre unbridled of Sydney.

However, Machiavelli's monotonous regularity is a disservice to any new state movement. Some need to realise that all talk and no action is an exercise in futility, and others need to let go of foolish dreams.

I hope, judge, that helps make clearer my thoughts on the subject.

Posted by Seven of eight, 25/11/2011 3:07:19 PM, on The Herald

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