Monday, May 17, 2010

Keep it up Clive

If the government wants to get more of the public on side for the resourse "super profits" tax, then they just need to ensure that Clive Palmer gets more air time on TV (in particular) and radio. I'm all for debating the policy, not the personalities, but Clive is such a throwback to the Bjelke Peterson era of white-shoe fat cats (yes he's also untelegenically obese) that the more ranting about the Communists in Canberra that he does, the more likely it is that the popular perception will be "screw the inequity - as long as Clive and his mates have to pay more, I support the tax". [Clive Palmer was actually one of the main funders of the Joh for PM campaign, which, in the shoot-yourself-in-the-foot style he seems to favour, actually had the perverse outcome of splitting the conservative vote at the 1987 election, and handing Labor victory thanks to increased seats in Queensland, and a national boost to Labor due to a fear of Joh candidates holding the balance of power in a hung parliament.]

Then there are the policy issues of the tax themselves... it's clear to me that the boom/bust cycle of mining (which I winessed first hand as a teen in the 80s, when my dad was constantly switching jobs in that sector, and eventually forced to live in Mt Isa to pay the mortgage, leaving us behind in Brisbane for 9 months) isn't really a great way to exploit the wealth in the ground. It causes unfortunate real estate booms in country towns, skills shortages in the cities, and cyclic displacement of people from their homes - which they're not prepared to move permanently, as the next bust is just around the corner. The structure of the tax, which is discounted for start up projects, will hopefully smooth out the investment cycle to create slower and more sustainable migrations to mining centres, and may result in the streets of those mining towns being at least paved - if not in gold, as the Union says they should be.

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