Money Talks: When Big Money And Governments Collide
Mining group Xstrata has halted investment worth A$586m in two mines in Queensland, Australia because of the government’s proposed new tax on mining profits (BBC News – Xstrata shelves investment in Australia mining tax row). Xstrata’s move adds to the pressure being exerted by the other mining giants Rio Tinto, BHP Billiton and Lonrho on the Australian Government to drop plans to introduce the super-tax. I can feel their pain as my investments in these companies have taken a dive with their share prices.
As the arguments rage between the two parties, you are left wondering just how does a company have the audacity to challenge what is basically the will of the people because in a sense, that is what the Government is supposed to be? Being realistic though in recognising that Governments don’t always follow what the people want, I would like to hear the views of ordinary people about the subject. In fact the Australian government has decided to produce nationwide advertisements in support of its policy to the population.
Who will win the argument, I don’t know, but if I was a betting man, I’d bet on a compromise that will save face on both sides. Can Australia afford to have these giants invest their huge funds in more accommodating countries like those now bending over backwards in Africa? I don’t think so.
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