SUBSCRIBE TO OUR FREE NEWSLETTER
PUBLISHED |

Treasury senior slams mining claims

Treasury senior slams mining claims article image
The architect of the mining 'super' tax, Dr Ken Henry, has attacked claims that Australia was kept from recession due to a resources boom. The Treasury secretary fronted a Senate hearing yesterday, saying "the suggestion that the mining industry kept Australia out of recession is curious to say the least" and said claims were not backed up by facts. According to Henry, employment and output of the mining sector collapsed during the recent slowdown, and if all industries had shed the same proportion of workers, the unemployment rate would have reached 19 percent: "The mining industry experienced a deep recession." His remarks come after vocal opposition to the Federal Budget's proposal of a 'super' tax for the resource industry where mining bodies have claimed the sector helped prevent Australia from entering a recession during the global economic downturn. Henry said other factors such as interest rate cuts, government spending and early action by countries such as China and South Korea benefited the Australian economy more than mining profit. "We find ourselves in the part of world that's growing stronger than anybody imagined this part of the world would be growing 12 months ago," he said.

Tags

Leave A Comment

Spinning icon Saving your comment, please wait...
Spinning icon Saving your comment, please wait...