A Senior Labor Minister has confirmed that the Rudd Government is all at sea on the effects of its resources super profit tax, according to The Nationals Senator for New South Wales John Williams.

In response to a question in the Senate today on why many resources will be subject to the tax against the suggestions of the Henry Tax Review, Minister Penny Wong, representing the Resources and Energy Minister, appeared reluctant to answer it and instead said it should be directed to the Treasurer.

When pressed to indicate what modelling had been done on the likely price increases of products used in community infrastructure such as sand and gravel, Minister Wong could only say consultation was in progress.

“This is exactly what has put Labor in the pickle in the first place on this great big new tax. Announce the tax but forget to consult with those it will affect in the first place.

The Henry review explicity names more than 30 resources that could merit exemption from the mining tax, but the Government in its greed is ignoring this advice.

We must then presume that all quarries regardless of size will be paying 57 percent tax if they return more than 6 percent profit on their investment, and this will lead to obvious price rises for materials used in road making and other infrastructure.

The resource companies are not the only ones digging in on this issue. Mr.Rudd has also dug himself into a big hole”,  Senator Williams said.

ENDS