Macdonald, Sen Ian

Senator IAN MACDONALD (Queensland) (18:02): I contribute to this debate proudly in solidarity with the thousands of men and woman of Australia who work in Australia's mining industries and with the tens of thousands of my fellow Australians who benefit from, and whose mere existence depends upon, a strong mining industry in Australia. I am a proud supporter of the Australians for coal industry. I remind senators that where I operate, in Townsville, we are near the Bowen coal basin, where there are hundreds of jobs and billions of dollars of wealth for all Australians out of the coal industry. There are some 54,900 direct jobs in the coal industry. There is some $6 billion paid in wages in the coal industry. The coal industry alone pays $25.5 billion in royalties to state governments in the five years from 2006 to 2012. Seventy-five per cent of the electricity that we use comes from Australia's black and brown coal. A contribution to the GDP is measured in the order of $43 billion with some 90 megatonnes in export value. The coal industry—and the mining industry generally—is particularly important in my state of Queensland where there are 37 projects proposed or under development in the coalmining industry. Coal exports have contributed something like 15 per cent of Australia's total export over the last five years. The coal industry alone has contributed $260 million to an industry fund supporting low-emission technologies. Some 82 megatonnes of coal have been sent to Japan over the years. Importantly, to defy the arguments of Senator Cameron, Senator Lines and Senator Milne, the coal companies alone—this is not all mining companies, this is just coal—paid $17.7 billion in company tax over the five years. This bill that we are debating today is getting rid of a tax that inhibited our mining and mining exploration in our country. It was a tax that not only discouraged investment and therefore discouraged jobs but also did not raise any money. We know for all the projections of the Labor and the Greens that it was going to raise $49 billion, in the first year or so it raised only $340 million and most of that was spent in trying to administer the act and the collection of those moneys. As we went—these are the Labor government figures—the $49 billion projection came down to 26 and then came down to 11, then came down to 9, then came down to 7, and then came down to 4. This was a tax that, in spite of what you heard from Senator Milne, the Greens political party supported the Labor government in introducing this useless, worthless and job destroying tax. Senator Milne would have you believe that the Greens were against it. They were totally involved and I am glad that Senator Milne mentioned the three big companies. It was the three big companies that Senator Cameron was disparaging—Senator Cameron forgot but Senator Milne obviously did not—that did the secret deal with Prime Minister Gillard and Treasurer Swan. Remember they went into the little room, came out of it and, as a result of that, everybody paid the mining tax except Xstrata, BHP and Rio Tinto. They must have thought all of their Christmases came at once when they walked into the room to negotiate with Wayne Swan and Julia Gillard. They just could not have possibly believed their luck. I have heard the class warfare arguments from both Senator Milne and Senator Cameron. If they are so against all of these big mining companies, why didn't they get up and support me when I suggested, just a week or so ago, that the debt levy should not apply only to individuals but should apply to the big corporate people? I think I particularly mentioned Xstrata and BHP and Rio. And yet did the Greens support that? No. They let them go. And they talk about the government being the friends of the big end of town! 'The friends of the rich people'—how many times did we hear that? Yet here is the Labor government negotiating with those 'rich people at the big end of town' to get this mining tax in operation. What absolute hypocrisy of the Greens political party and the Labor Party! The ACTING DEPUTY PRESIDENT ( Senator Bernardi ): Order! Resume your seat, Senator Macdonald. Senator Ludlam, you have acted in the most disorderly manner by using a prop, as a stunt during a senator's speech. Return to your place, Senator Ludlam. What you have done is completely inappropriate. It is disorderly. It has no place in this chamber. Senator Macdonald, please resume. Senator IAN MACDONALD: Again, Mr Acting Deputy President, it shows the lengths the Greens political party will go to to try and stop people making a point. Why? Because they know that everything I am saying is the absolute truth, and there is one thing the Greens political party cannot handle, and that is the truth. We have been told that the mining companies pay no tax. Indeed, the truth is very different. Mining has paid $117 billion in company tax and royalties since 2006-07, and it has paid some $21 billion in 2011-12 alone—that is double the payment it made several years previously. Australian Taxation Office statistics show that mining's effective tax rate was 28 per cent in 2010-11, but, if you include the royalties that are paid to state governments, the effective rate of tax was 40 per cent. So Senator Cameron, Senator Milne and Senator Lines would have you believe that the mining companies pay no tax, but there it is: the ATO's statistics say some 40 per cent effective tax is paid by mining companies. Mining companies do make profits and they do send them overseas—which makes me wonder why the Greens did not support my call for a debt levy on them. But the Greens can answer to that. Mining companies do pay a considerable amount of tax through mining tax and royalties. They are a major contributor to the Australian economy directly, accounting for eight per cent of GDP, and directly employing some 250,000 of my fellow Australians. That is why I proudly stand in solidarity with all of those people who work in the mining industry that the Labor Party and the Greens would throw onto the scrap heap. I know that, since the mining tax has come in, there has been a pause, a concern, a hesitation in investing in Australia—due to sovereign risk as well as the mining tax and the carbon tax. As a result of that pause in investment, a lot of jobs have been lost in the Bowen Basin area in my home state. Australian mining spends more than $4 billion each and every year on research and development, which is about 22 per cent of the total business expenditure on research and development in Australia. Mining has spawned an Australian mining equipment technology and services sector worth around $90 billion, and it exports some $15 billion worth of goods and services. We have been asked to be brief. There are a lot of other facts and figures I would like to submit—and perhaps that will be something for the future. But, before I leave the debate, I just want to contribute by referring to some of the things that others said in this debate. We heard Senator Lines refer to the 'big end of town' and 'big mining mates', carrying on the terminology of Senator Cameron, and I pointed out: who are the mates of the big mining companies? The Labor Party that got into bed with the three biggest of them, and then had the hide to come in here and accuse everyone else. And don't let the Greens fool you. They were in it up to their necks with the Labor government. They worked and worked with the mining companies to bring in a tax which affected many mining companies but not the big ones. I would refer you to a publication of the Association of Mining and Exploration Companies, who clearly said that the legislation was an: … ill conceived, anti competitive, complex, distortionary … and … irrefutable bad tax. They say a lot more things about it, but time does not allow me. We heard Senator Cameron railing against the three big companies that his government got into bed with and did the deal with, and using all of the old-fashioned class warfare arguments. I want to say something to Senator Cameron—and I hope he is listening. In this chamber we should be debating the issues, playing the ball and not the man. Senator Cameron—and I do not know if he has got something against women—cannot let a day go past without attacking personally and viciously— Senator Moore: Mr Acting Deputy President, I rise on a point of order. I draw your attention to the standing order about reflecting on other members of the chamber. I think Senator Macdonald is coming very close to making allegations against Senator Cameron which are indeed reflecting on his character. The ACTING DEPUTY PRESIDENT ( Senator Bernardi ): Senator Moore, there were no allegations made. I think what Senator Macdonald was doing is part of the robust debating process. Senator Heffernan: Mr Acting Deputy President, I rise on a point of order. I would like to express my strong objection to the conduct of this chamber and the production of this bloody commercial message without my permission. This is a protocol issue— The ACTING DEPUTY PRESIDENT: Senator Heffernan, resume your seat. That is not a point of order. Senator IAN MACDONALD: I refer Senator Moore to Senator Cameron's speech in this chamber—and the Hansard is here—where he attacked Ms Rinehart. At least Senator Milne attacked Ms Rinehart and Mr Palmer. We do not hear that from Senator Cameron. He does not attack Mr Palmer. I wonder if that could have something to do with the fact that Mr Palmer's own political party has the balance of power in this chamber now. Let us not attribute those motives to him. Let us wonder why it is always Gina Rinehart he attacks in a vicious and personal way. Senator Cameron, if you are going to start playing the man instead of the ball then we can all contribute. I ask Senator Cameron: what was your association with my namesake—the bad Ian Macdonald, the Labor Party Ian Macdonald—from the New South Wales parliament? If you want to get into personalities, Senator Cameron— Senator Moore: Mr Acting Deputy President, I rise on a point of order. Again I am concerned about Senator Macdonald making a reflection on another member of this parliament. The ACTING DEPUTY PRESIDENT: Senator Moore, I am absolutely conscious of your concern in this regard, but Senator Macdonald was simply positing a question. Senator IAN MACDONALD: That is exactly what I was doing. I was asking Senator Cameron what his association is with Ian Macdonald the bad, the New South Wales Labor politician, who I understand was in his faction and whom he supported. Perhaps he can tell us. I want to also ask Senator Cameron about his role as a board member of a very big superannuation company. We always hear about how these big companies, the big end of town, do all these bad things. Perhaps we should look in the mirror. Senator Cameron can attack me as much as he likes, but if he wants to attack people who are not in this chamber—like Ms Rinehart, who is one of the great Australians, one of the great entrepreneurs and a person who has contributed so much to the Australian economy—he should remember it is a two-way street. I will not raise those things again unless he continues to attack people who are not in this chamber to defend themselves. Regardless of his opinion of her, many other people, including me, think she is one of the great Australians. I will complete my speech there because we are wanting to have a vote on this bill. I want to emphasise that all of the mining companies in Australia already pay a substantial amount of company tax and, importantly, royalties to state governments. That is why when a group of coal companies—and coal, as I have indicated, is just so important to my state of Queensland—initiated Australians for Coal then I proudly became involved in it. Unlike my good friend Senator Heffernan, who I know has an objection to the fact that they printed his name on these jackets, I was tickled pink and very proud to see my name embroidered here. Senator Heffernan—to his own respect, and it is his issue—did not like it, but I was so proud of it. So I proudly wear this high-vis shirt in the chamber today as a demonstration of my support and my solidarity with all of those workers involved in the mining industry right throughout Australia and in all of the towns and communities, most of which are in northern Australia, that exist only because of Australia's mining industry. I look forward to a big future for the mining industry in Australia. If the Greens are so concerned about carbon emissions, I look forward to a time when the Greens political party will join me in supporting uranium production for energy in Australia. No, the Greens want it both ways. They do not want any carbon and they do not want uranium, yet they like their air conditioners, their fires and the creature comforts of human beings. I proudly support all of those involved in the mining industry, many of which are in northern Australia and in my home state of Queensland. My home state of Queensland is a substantial beneficiary of the Australians for Coal campaign and of the coalmines and jobs created there. Communities in my state are supported by the fabulous mining industry we have in Australia. The ACTING DEPUTY PRESIDENT: Senator Heffernan, you are not on my list of speakers. Do you have a point of order? Senator Heffernan: Yes, I do. The ACTING DEPUTY PRESIDENT: I give you the call to make a point of order, but you are not to make a speech, Senator Heffernan. Senator Heffernan: Righto, I will not make a speech. I would like some guidance through a point of order as to the protocols in this parliament and in this chamber about the endorsement of a commercial product without my permission and the wearing of advertising material in the chamber. I thank you for your indulgence, Mr Acting Deputy President. I support the mining industry too but my point of order is it sets a precedent and the next thing we are going to have is 'Bill Heffernan: friend of marijuana' or 'Bill Heffernan: friend of Coca-Cola' without my permission. I have told the minerals and mining council to shove this and everyone else should too. The ACTING DEPUTY PRESIDENT: Thank you, Senator Heffernan. I will take your concerns under advisement and I will refer them to the President of the Senate. But when it comes to the attire in the chamber, I have noticed on occasions in my time here that people have worn scarves, they have worn T-shirts— Senator Ian Macdonald: Kilts. The ACTING DEPUTY PRESIDENT: Kilts, indeed—and I have noticed that Senator Macdonald does at least have a tie on. Senator Moore: Mr Acting Deputy President, on the same point of order. I would seek some advice from the chair on the wearing of a garment with advertising material on it. I support Senator Heffernan's question on that and I would like to get some guidance. The ACTING DEPUTY PRESIDENT: Senator Moore, I have undertaken to refer this to the President, which I think is appropriate and he can make an appropriate ruling in the circumstances. Senator Ian Macdonald: Mr Acting Deputy President, on that point of order. But you have ruled on that, so I will raise another point of order. This is a very colourful and well-fitting outfit I am wearing. As for advertising, perhaps I am advertising myself here where it says, 'Ian Macdonald'. Here on the other side, it says in very, very small letters, 'Australians for coal'. I am not sure which company that is that is being advertised. When you are referring this to the President, could you please alert him to the fact that there is no advertising on this wonderful garment I am wearing. The ACTING DEPUTY PRESIDENT: Senator Siewert, on this point of order or a new one? Senator Siewert: On this point of order. Perhaps when you refer this issue to the President, you could also refer the fact of where these shirts came from and whether they were specifically given out so that senators could wear them during the debate on the mining tax, please. The ACTING DEPUTY PRESIDENT: I take your point and that will be up to the President to consider. Senator Ian Macdonald interjecting— The ACTING DEPUTY PRESIDENT: I am not going to continue with this, I am going back to the bill. Senator Urquhart has the call.