Article by Josh Zimmerman courtesy of The West Australian.
McGowan confident miners’ legacy projects fund will continue to grow
Premier Mark McGowan hopes a new $750 million mining sector-backed investment fund will quickly double in size as more resources companies are convinced to contribute to the scheme.
Six of WA’s biggest miners Rio Tinto, BHP, Hancock Prospecting, Woodside, Chevron and Mineral Resources were on Tuesday confirmed as the inaugural donors to the Resources Community Investment Initiative.
Unveiling the new fund which will be used to pay for major “legacy” projects like the $400m Aboriginal Cultural Centre and the $250m Perth Zoo redevelopment Mr McGowan said he expected it would continue to swell. “We’ll be seeking contributions from other businesses in the resources space in Western Australia over coming days and hopefully we’ll get to significantly above $1 billion dollars to support those important projects,” the Premier said.
Later, he told Parliament he was writing to 30 additional companies to solicit donations on Tuesday and believed that the total sum would reach “hopefully in the vicinity of $1.5b”.
The Premier made the announcement flanked by many of WA’s top mining executives as well as Chamber of Minerals and Energy WA chief executive Rebecca Tomkinson, who batted away questions about whether the fund should absolve her member companies of paying higher taxes or royalties.
“Our companies in the mining and resources sector have always made a contribution over and above the taxes and royalties that they contribute,” Ms Tomkinson said.
“This initiative is another opportunity for our industry to demonstrate further collaboration and stronger engagement with the community.” Asked what kind of return on investment donor companies expected from their contributions to the RCCI, Ms Tomkinson said the pay-off was “the opportunity for West Australians to have intergenerational, long-term beautiful assets that we’re incredibly proud of”.
She also confirmed projects built using RCCI cash would incorporate the branding of the fund rather than the individual mining companies. Mr McGowan was asked whether the fund came in lieu of tax or royalty increases.
“I’ve been Premier for nearly six years,” he said.
“We haven’t interfered with the tax or royalty arrangements and we don’t intend to do,” While welcoming the investment fund, shadow treasurer Steve Thomas warned it would intensify east coast agitation for the winding back of the 2018 GST deal.
“Mark McGowan’s been adamant about protecting the GST deal to date, but this is going to fly in the face of all of those people over east and those governments who have been saying we’ve been getting it too good that’s a risk for the State,” he said.
