Kevin Rudd runs rings around town

THE rubber hit the road in Mackay yesterday, along with the PM, and a promise emerged that a $300m ring road would be funded by the mining tax.

Kevin Rudd discusses the resource super-profits tax with mining union members in Mackay yesterday. Picture: Lyndon Mechielsen

THE rubber hit the road in Mackay yesterday, along with Kevin Rudd, and guess what emerged: a promise that the $300 million ring road wanted by locals was just the kind of thing the resource super-profits tax would buy.

Anyone would think there was an election happening.

The undeclared campaign is well and truly under way in the marginal seats that will count most when the Prime Minister gets around to naming a date later this year.

Mr Rudd and his entourage hit the same ground in Labor-held Dawson trod on Thursday by Tony Abbott, who kept travelling north to Townsville to rail against Mr Rudd's hit on big miners.

Having flown in late on Thursday night from Perth, where he met angry bosses, the Prime Minister received a more gentle reception at an "education session" organised by the Construction Forestry Mining and Energy Union.

He had already spread local cheer by announcing the federal government would kick in the extra $2.5m needed to floodlight Mackay's new football stadium.

What the locals really want, though, is a road bypass to carry the heavy trucks and tankers that rumble along to the port.

Mr Rudd knows all about that. Last time he was in town, six weeks ago, he went out at rush-hour at 3pm to see for himself where "the rubber hits the road" in Australia's mining boom.

Mr Rudd has been telling people around the country about the proposed Mackay ring road, and how it is exactly the sort of project that would be financed through a regional infrastructure fund linked to the RSPT.

His message to Mackay yesterday was that local communities couldn't be expected to fund such big projects, and there was a limit to what government could borrow or people would pay in taxes.

"Maybe there is another alternative," he said, to nods of approval from CFMEU members. "Which is to ask mining companies, when they are earning super profits, to pay more tax to support the infrastructure which supports the mining industry. That's what I am saying, loud and clear."

Lots of interests are suddenly converging in Mackay. The once-sleepy north Queensland sugar town has reinvented itself as a mining hub, servicing the giant coalmines of the Bowen Basin, and has one of the fastest-growing populations in the country.

The city anchors the federal seat of Dawson, extremely valuable political real estate. Labor won it from the Nationals in 2007 and desperately wants to keep it to offset other possible losses in Mr Rudd's home state.

The margin in Dawson is a very achievable 2.4 per cent for the Opposition Leader's man, ex-journalist George Christensen, who worked for defeated Nationals MP De-Anne Kelly. Labor's candidate, Mike Brunker, a former coalminer, has stepped in to replace retiring MP James Bidgood. A beaming Mr Rudd made sure Mr Brunker was at his side yesterday.

While cabinet ministers have trouble getting in to see the Prime Minister, it is no problem for David Fisher, editor of Mackay's Daily Mercury newspaper. Mr Rudd caught up with Mr Fisher at his hotel yesterday morning.

Readers of the Mercury will be treated today to another front page featuring Mr Rudd. "But he's not the lead," the newspaper man said. "We're doing that on an increase in water rates."

As for Mayor Col Meng, who had a beer with Mr Rudd last time he was in Mackay, well, there was a bit of a mix-up. "It's not a problem," Mr Meng said. "I'm in Canberra next week and will see him then."

Both agree Mr Rudd's charm offensive is paying off with locals.

Mr Abbott, however, insists the voters of Dawson "were better than that", and would not be bought off by Labor.