Stephen Galilee: Labor should stop attacking miners, they can dig Australia out of its economic hole

The Albanese Labor Government has spent much of the last three years attacking the very industry that has provided it with ongoing revenue rivers. No wonder its latest budget looks bleak, writes Stephen Galilee.

Every business owner knows when times are tough, you back your bestseller. You don’t hide it away, or even worse, actively undermine its competitiveness.

Right now, times are tough for Australia. Federal Treasurer Jim Chalmers just delivered a Budget with cumulative underlying deficits of $152 billion over four years.

Within a few years gross government debt is forecast to reach a massive $1.2 trillion. Interest payments in the next year alone will total $28 billion, and increase in future years.

Our country is blessed with an abundance of mineral resources and a world class mining industry. These minerals are consistently our top export earners. If Australia was a business, mining would be one of our best sellers. Despite this, mining has been heavily targeted by the Albanese Labor Government.

There was a lot that former Federal Treasurer Wayne Swan got wrong. However, one thing he got right was regularly highlighting the revenue ‘rivers of gold’ delivered by mining during the Howard and Costello years, which helped deliver successive budget surpluses and tax cuts.

The entrance to McPhillamys Gold Project operated by Regis Resources Limited in Blayney. Picture: Rohan Kelly

John Howard and Peter Costello knew a strong mining industry meant a strong budget and a strong economy. They also knew that when the budget is strong, governments can afford to do good things like deliver meaningful tax cuts, pay off debt, increase defence spending and invest in infrastructure.

As well as forecasting a decade of debt and deficits, last week’s Budget confirmed strong mining results delivered $4.5 billion more in company tax revenue than expected, boosting overall company tax collections to $140 billion.

Labor likes gold mining when it provides a photo opportunity, but is less enthusiastic in practice. Here, Prime Minister Anthony Albanese is seen visiting the Pallion Precious Metals Refinery in Marrickville in Sydney in 2022. Picture: Britta Campion / The Australian

Given this, you would think a Government so committed to spending, deficits and debt would understand the need to support the industries delivering the cash they want to splash.

Instead, the Albanese Labor Government has spent much of the last three years attacking the very industry that has provided it with these ongoing revenue rivers of gold.

Burdens placed on mining include the additional costs of the so-called ‘Safeguard Mechanism’, industrial relations changes giving union bosses more power in the workplace, proposed ‘Nature Positive’ reforms which duplicate existing state based regulations, higher power costs thanks to Chris Bowen’s failed energy policies, and the extraordinary decision to block the McPhillamys gold mine, costing NSW around 800 jobs and millions in economic investment.

Last week’s Budget also quietly killed off an important incentive for junior minerals explorers, at a time when the global demand for metals mining in particular is at an all time high.

Labor’s ongoing assault on mining not only weakens the sector. It also threatens the budget revenue ‘rivers of gold’ and the entire economy.

So while this election will be about the cost of living and energy policy and national security, it is also about who will keep mining strong to protect the budget and save the economy.

Because when mining is strong the economy is strong, and a strong economy means a safer and stronger Australia.

Stephen Galilee is CEO of the NSW Minerals Council