Tony Abbott defends Peter Dutton's shares in BHP

LIBERAL Peter Dutton bought shares in BHP after the Government announced the resources super profits tax, which the Opposition says will ruin mining.

OPPOSITION health spokesman Peter Dutton reportedly bought shares in BHP Billiton after the Government announced the resources super profits tax, which the coalition argues will ruin the mining sector.

Miners are outraged by the proposed 40 per cent tax, and the coalition, which plans to oppose the move, says it risks killing the nation's most vital sector.

Mr Dutton lodged a declaration of shares in miner BHP since the tax was proposed, Channel 9 reported tooday.

Opposition Leader Tony Abbott said most Australians indirectly had shares in BHP through their super, and maintained the tax was a bad idea.

"Their (BHP's) investment is going to be under enormous cloud as long as this tax is in place," he told Channel 9.

"I will let every person make their own investment decisions.

"But if you take BHP on its word ... there's the coal mines in Queensland, the iron ore mines and the uranium mines in the west, there's the $22 billion Olympic Dam expansion, all (with) big question marks over them because of this new tax."

Mr Abbott said the argument the tax would grow the industry did not make sense.

"It's an even bigger fairytale than the story the prime minister spent his Christmas writing," he said. "It just is not believable."