RUDD’S MINING TAX THREATENS INDIGENOUS JOBS

May 24, 2010

Indigenous Australians will be hit hard by Fortescue Metals’ announcement today of plans to cut $18 billion worth of projects and around 30,000 jobs, Shadow Minister for Indigenous Affairs Nigel Scullion said.

“Fortescue’s Chief Executive Andrew Forrest founded the Australian Employment Covenant with the goal of creating 50,000 sustainable Indigenous jobs, but many of these jobs are now threatened by Kevin Rudd’s damaging tax grab,” Senator Scullion said.

“Mining companies have steadily increased the number of job opportunities for Aboriginal and Torres Strait Islanders in regional and remote areas where there is chronic Indigenous unemployment.

“In the Northern Territory, mining companies have an 18-month training program in conjunction with the Minerals Council of Australia for 100 Indigenous people from remote areas, but this is now in jeopardy.

“There’s a huge amount of uncertainty because companies don’t know the details of the tax and can’t recalculate their expansion plans, but it is almost certain community programs and Indigenous training will be cut.

“Kevin Rudd was more than happy to shake hands and have his photo taken at the launch of the covenant, but is now silent about the impact his great big new tax will have on Indigenous job opportunities.

“On a wider scale, his tax will damage the sector that underpins Australia’s economic security and have flowon effects right through the community. It will cost thousands of jobs, increase household gas and power bills, and send wealth offshore.

“Sadly, it’s also a bitter blow for Aboriginal people seeking jobs on their own country and a major threat to the success of the employment covenant.”

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