Doorstop Interview - Policy Transition Group Consultations 

MARTIN FERGUSON:

Well obviously as you can see the Policy Transition Group has started its process of consultation with the industry. It follows the release of a detailed discussion paper aimed at focusing industry's attention on the key issues. The objective is to finalise our considerations - and give a report to the Treasurer prior to Christmas. The report will clearly inform the draft legislation following which there'll be a further process of consultation because it will be an exposure draft which will lead to the final legislation of the MRRT and the PRRT legislation.

JOURNALIST:

How have the meetings gone so far?

MARTIN FERGUSON:

Oh, it's a straightforward process, and I actually think the discussion paper has focused the attention of industry and individual companies because it raises the key questions which always had to be attended to, for example, of the taxing point. That's about trying to make sure that as we go forward we're really discussing at length the key elements that have to be attended to by the Policy Transition Group.

JOURNALIST:

Have you ruled out increasing the $50 million tax threshold?

MARTIN FERGUSON:

The Government has announced its basic parameters. In terms of the role of the Policy Transition Group, it's to implement those policy parameters. And clearly the issue of a $50 million threshold has been raised. But in terms of our consideration that's a matter we'll have to discuss in due course with the Treasurer.

JOURNALIST:

That magnetite, Minister, is that - that was a topic…

MARTIN FERGUSON:

The magnetite industry has been here today. They have given a detailed presentation across a broad range of issues including obviously one of the key issues that is the taxing point. Questions of the nature of the industry, the downstream process in Australia, the benefit to Australia - they're all the type of matters that will be considered by the PTG in due course.

JOURNALIST:

Have you given any suggestions or comfort to the industry about exploration incentives and what might be done to help boost exploration?

MARTIN FERGUSON:

The discussion paper clearly raises the different exploration incentive options. Some of the groups represented, they obviously feel that we should be creating further incentives to actually encourage exploration. In the end the PTG will make appropriate recommendations to Government. It just does not include I might say incentives to industry. It also includes the very important role - and the resourcing of Geoscience Australia - a government agency which does a lot of precompetitive geoscience work of great value to industry.

JOURNALIST:

The 28 October deadline with submissions - can you extend that? It seems pretty tight.

MARTIN FERGUSON:

Look, from industry's point of view, they actually urged me to try and resolve this by Christmas. They want these matters resolved for the purposes of certainty so as to also enable the Government to actually finalise the draft legislation to be released prior to the end of this financial year on the basis of which there will be an exposure draft and a further round of public consultation.

Remember this. There'll be a couple of opportunities for industry to actually engage with Government, because the legislation will hopefully have effect from 1 July 2012.

JOURNALIST:

When you came before the election to Perth you hosted quite a heated meeting between junior miners and yourself. Has the sting been taken out of the debate, do you think? Is there - has there been some coming together?

MARTIN FERGUSON:

I think there's an understanding in industry now that the Government is going to go on with the announcements of 2 July. And perhaps now they are really focused on the serious issues raised in the discussion paper that we released last week. That has focused industry's mind on the issues that have to be resolved. And in many ways the release of that discussion paper has facilitated discussions that have occurred today - and will occur over the next couple of weeks.

JOURNALIST:

Did you get any curly ones in there, any ones that you weren't expecting you could share with us?

MARTIN FERGUSON:

I think the issues raised were the issues we knew were going to be canvassed in these discussions, will be canvassed in the same way in places such as Brisbane, Sydney, Melbourne, et cetera because some of them are common across industry generally, be it coal or iron ore.

JOURNALIST:

And tomorrow focuses a bit on petroleum. Are you - is there enough time being spent on iron ore given that that's the predominant sort of focus of industry concerns in WA?

MARTIN FERGUSON:

I think what we've achieved is that we've actually encouraged - for example - the magnetite sector to come together and to make as best possible a common presentation. So in thinking about our process of engagement, we had encouraged industry to think collectively because the issues are common - for example, across the magnetite, across potentially coal-seam methane, a potential new industry on the east coast.

That enables the industry to try and achieve as best as possible a common position for the purposes of canvassing those matters before the PTG.

Minister, the Australian dollar hit a fresh high last night. Do you have any concerns personally about the competitiveness of the Australian industry in light of the - what's happened with the dollar and with this new tax?

MARTIN FERGUSON:

Look, obviously the dollar changes from time to time from the resources industry point of view it's good for industry. But as Minister for Tourism, I understand the challenges it creates for the industry. It's highly attractive for our own community to actually go overseas to have a holiday - alternatively it's less attractive for people from overseas to come to Australia. They're the type of issues we have to contend with from time to time.

And that's why Tourism Australia is actively encouraging Australians to firstly take a holiday, to reduce our liability on accumulated annual leave - but perhaps more importantly to encourage them to actually have a holiday at home and keep Australians at work.

JOURNALIST:

Minister, [indistinct] got a legitimate request to see the underlying assumptions of the tax?

MARTIN FERGUSON:

I think the industry has now focused on the fact that the Government is clear in its intent to put this tax in place. Their job is to try and frame the issues which go to the application of the tax. In essence they understand that we are going to move forward, and their job is to try and impact on the nature or where the tax cuts in - and their potential liabilities.

JOURNALIST:

Minister, on the Kimberley gas hub, the state Opposition here says that the move to forcibly acquire the land will mean that the process will take a lot longer. Are you at all concerned that the Premier's move will, you know, make this untenable?

MARTIN FERGUSON:

Whilst not seeking to defend the Premier's actions - I also remind you that the current Opposition actually pursued compulsory acquisition when it was in Government in a similar way in which the current government is doing it.

The role of the Commonwealth Government is to continue to work with all parties to resolve the outstanding issues. And I and the Government are focused on what I think is still possible, that is, the completion of a successful Indigenous Land Use Agreement. They're the discussions I've had with Wayne Bergmann and representatives of the Kimberley Land Council since the announcements of the Premier. Well I simply say to the Opposition don't be quick to condemn what you previously did yourself when in government with respect to the issue of compulsory acquisition.

JOURNALIST:

But you do condone it as a move?

MARTIN FERGUSON:

I am saying that from the Government's point of view, our job is to work with all parties to actually put in place - because there is more than ample time - an Indigenous Land Use Agreement, that's where my energies will go and that's where I think we will actually land.

MARTIN FERGUSON:

Okay. Thank you very much.