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More taxes could limit investment in the Northern Territory
The Association of Mining and Exploration Companies (AMEC) still has serious concerns over the enacting of the 1% environmental tax in the Northern Territory.
“With the Minister releasing a statement that only a third of more than $6 million dollars raised by the tax will actually be directed to legacy sites, it brings into question the remaining two thirds that will go directly to administration fees,” said Simon Bennison, AMEC CEO.
“To give some certainty to the industry, AMEC seeks a commitment from the Minister to consult with industry on the removal of the tax. It is time for proper consultation to look at all alternatives in addressing legacy sites.
“In the current economic climate, it is inconceivable that a government would seek to add costs to production to fund activities that are provided as business-as-usual in other states.
“Legacy sites resulting from previous Government policies must be addressed by the Government revenue derived from these activities and their royalties. It is hard to see the logic of punishing the current operators.
“AMEC has previously highlighted that the WA Mine Rehabilitation Fund (MRF) model would be the most appropriate solution for the Northern Territory government, industry and the community. The MRF has already received a very positive reception in Western Australia, apparently attracting more than 370 voluntary registrations prior to its 1 July 2013 rollout.
“AMEC is seeking more detail from the Department on the progress this tax will make in improving the environmental outcomes across the Territory.
“It is essential that we remove barriers to doing business in the Northern Territory to encourage investment; not add additional taxes to an increasingly costly industry,” said Mr Bennsion.
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