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Unemployment Jump Highlights Impact of WA Nationals Mining Tax Plan

Chamber of Minerals and Energy Chief Executive, Reg Howard-Smith, said today’s Australian Bureau of Statistics unemployment figures highlighted the job losses from the mining tax plan, as demonstrated by economic experts, Deloitte Access Economics, could not come at a worse time.

“On the same day it is revealed WA has the highest unemployment rate in the country, the WA Nationals are out proposing a devastating mining tax which will cost 3,400 jobs in WA – almost 3,000 of those in the Pilbara alone,” Mr Howard-Smith said.

“This tax is highly irresponsible and should be roundly condemned. The proposal could well cement WA’s place at the top of the unemployment heap into the near future.

“At a time when WA is suffering the last thing we need is a scheme which will damage our State’s reputation as a place to do business, harm investment into WA and cost families and businesses their livelihood.

“The last thing people working in our mining sector want is to have uncertainty about their jobs hanging over their heads over the Christmas period due to a ridiculous, reckless tax proposal by the WA Nationals.”

This week’s Deloitte Access economics report showed the WA Nationals’ mining tax plan would:

  • Disproportionately impact the Pilbara, reducing the local economy by 4.8 per cent and employment by 4.3 per cent (2,900 jobs). Over time 3,400 jobs in WA and 7,200 nationally would be lost

  • Cause Australia’s economy to contract by $2.9 billion a year while only raising $2.3 billion. It will cost Australia $600 million to have this tax in place – making everyone worse off across the board.

  • About 90 per cent will go to the eastern states, not stay in WA despite the money being raised at the cost of hard-working Western Australian families and businesses, especially those in regional areas. WA would ultimately receive less than $300 million of the $2.3 billion

  • The tax will shrink the Western Australian iron ore sector, by 6.3 per cent.