Transcript of 02/07/2010

Interview with Alicia Gorey

Nine Morning News

2 July 2010

SUBJECTS: Minerals Resource Rent Tax

GOREY:

We go live to Canberra now to Deputy Prime Minister, Wayne Swan. Wayne Swan thanks for joining us. You've been very adamant over recent weeks that the Government's original deal was appropriate. Why now then are you backing down?

TREASURER:

Well, there has been some give and take on both sides, but Australia is going to have a profits based tax which is going to fund a big boost to superannuation, a big investment in infrastructure, and of course, lower tax for small business. So this is a very big reform but, of course there has been some give and take on both sides and, of course things changed fundamentally when Prime Minister Julia Gillard intervened, the tone changed and the discussions became much more constructive and you see the difference today.

GOREY:

Was Kevin Rudd then the problem in the negotiations with the miners?

TREASURER:

No, it was a difficult negotiation that went on for some period of time involving not just the former Prime Minister, but myself, Minister Ferguson, and I think the intervention from Prime Minister Julia Gillard really made a difference and it got this deal done.

GOREY:

Have you had to give more than what you would have liked? You talked about give and take, but you appear to have given a lot to get this deal done.

TREASURER:

Well, certainly we've had to make some changes in terms of the design of the tax, but at the end of the day, it's a profits based tax which will mean better value for the Australian people for the resources that they own 100 per cent. And after all, they can only be dug up once. So what's important about a profits based tax is it does leave an enduring legacy to the Australian people over time, for our children and their children.

GOREY:

The miners agreed to give Julia Gillard two weeks to make this deal and you've done it in one. Now that you've essentially cleared the decks is it time to call an election?

TREASURER:

I don't believe that this has got anything to do with the timing of an election. It's a fundamental reform for Australia which is going to deliver a significant boost to superannuation, to national savings. That's very important so we can build infrastructure as well, particularly in mining areas, and to provide a better deal in terms of tax, particularly for small business. They've been doing it really tough. What this will do is to strengthen and broaden our economy. It really is going to help set us up for the future.

GOREY:

Alright. Deputy Prime Minister, no doubt a good day for your new Government. Thanks very much for joining us.

TREASURER:

Thank you.