WONG: Obviously this is a disappointing decision particularly for South Australians, particularly for my home town and people from my home state. Were disappointed that BHP has delayed its investment. As Marius Kloppers has made clear, as BHP has made clear, thats as a result of market conditions, capital costs, and commodity prices being less high than they were. Weve been saying for some time that we assume that the terms of trade, which include commodity prices, will decline.
GILBERT: Is it being read though well, it is being read by some analysts do you see it as the boom having peaked?
WONG: I think we still have a very strong pipeline of investment. Remember, its about half a trillion dollars and more than half of that is at the advanced stage. So I think its certainly not the time to be doing the doom and gloom routine which is what Tony Abbott is doing. We still have a lot of investment in this country. We have a lot of money coming into this country for projects. Theyre important and theyre good for the economy, but this is a disappointing decision.
GILBERT: Now, BHP didnt refer to the carbon and mining taxes yesterday in their statement. But doesnt it, as the Opposition have argued, affect the overall investment climate?
WONG: I want to say something about what the Opposition is doing with this decision. The Opposition, with Tony Abbott at its helm, is engaging in the most self-interested, dishonest scare campaign we have seen for some time. They have leapt on this decision almost with glee. And as a South Australian, I think that is appalling.
And what Tony Abbott is asking you to do, Kieran, and all of your viewers, is to say: Ignore the BHP statement, as I have because he hasnt read it. Ignore it, just like he has done, and believe what Im saying. Dont listen to what BHP has told the market, investors, their shareholders, and the Australian people. Listen to what Im saying.
Tony Abbott said on national television last night he had not even read the statement. You dont need any other information about the extent to which this man is running a dishonest, self-interested, fear campaign.
GILBERT: But he is pointing to other statements made by BHP. Can I just read them to you and get you to respond? Because Marius Kloppers, just a couple of months ago, says that aside from that, all of the other things like increased operating costs, carbon taxes and so on, have all conspired to turn this from a fairly low-cost environment and therefore competitive, to a higher cost environment. Jacques Nassar says: I cannot overstate how the level of uncertainty about Australias tax system is generating negative investor reactions.
WONG: Yeah, and who is creating the uncertainty? Who is the person who says he will repeal a mining tax that the companies have agreed to? That he will repeal a carbon price, which we all know is important for long-term certainty? That is Tony Abbott. And what youre asking me to do is
GILBERT: Marius Kloppers says the carbon tax
WONG: No, what youre asking me to do is
GILBERT: But Marius Kloppers says the carbon tax has made it a high-cost environment.
WONG: And Marius Kloppers said yesterday, very clearly, that this decision is as a result of what is happening in the market and commodity prices. It is not as a result of the Governments mining tax, which does not apply to BHP Olympic Dams output.
GILBERT: But it applies to other businesses, doesnt it?
WONG: But the point is, what youre saying to me and what Tony Abbott is saying, is: Ignore what BHP has said to the market. Now, Im not going to do that because its not right. And Tony Abbott shouldnt be out there telling people to believe him and not reading the statement that the company put out.
GILBERT: But explain to me, though, why is it unfair for him to say that the overall setting of investment affects a companys decision on a specific project? BHP might have not mentioned it specifically yesterday, but when you look at their overall business, why is that not reasonable?
WONG: Because the facts simply dont bear out what Mr Abbott is saying. And when you see yesterday, with Tony Abbott standing up there almost gleeful when the decision was announced, jumping on it to try and push his particular scare campaign, can I say to you he wasnt thinking about South Australian jobs. He wasnt thinking about Australian jobs. He was thinking about how he could use this decision to his political advantage, and he didnt even bother to look at the facts before he jumped on.
GILBERT: But I just want you to explain, why cant he make the argument? And why isnt it legitimate
WONG: Because its not true.
GILBERT: No, but if its affecting other parts of the business
WONG: Because its not true, Kieran, because its not true.
GILBERT: And if the chairmans saying theres uncertainty, if Marius Kloppers says its leading to higher costs, why is it unreasonable?
WONG: Because its not true. Because if you look at what BHP has said very clearly in their public statement to the market, this is not as a result of Government policy. This is as a result of what is happening in the global market. And its time for some facts in this discussion. Rather than a man who wants to be the Prime Minister jumping on a decision which is disappointing for my home state very disappointing rather than jumping on that, refusing to read the statement and telling people what he wants them to believe this is about, maybe he could actually do something for South Australia.
Maybe he could actually say: you know what, Im going to back the Governments investment in GMH, which he opposes. Im going to back the Governments investment in submarines, which Joe Hockey has told Adelaide people were not going to build them in South Australia. Maybe he could say: I dont agree with the per capita GST distribution which would hit South Australia by about $1 billion. But no, what is he doing on that? Hes saying I think per capita is something I should look at. So if people really think Tony Abbott cares about my home state, then why is he on submarines, on Holdens, and on GST distribution advocating a position which is so anti the interests of South Australia?
GILBERT: Before we move on from this specific issue of the carbon tax, if youre looking for everything else that the company refers to: the high dollar, the weak commodity prices, sure they were big factors in that Koppers said that yesterday. But on top of all of that you do have the additional cost, do you not, of the carbon tax, in establishing the expansion of that mine? Doesnt that just add to the burden that they already face?
WONG: Kieran, youve had the Premier of South Australia indicating what was said to him by Marius Kloppers, which is that the carbon tax is not the
GILBERT: But wouldnt he say that to the Government?
WONG: ... but what youre asking me to do, Kieran, is youre asking me to do what Tony Abbott is doing, which is to ignore what BHP has said. Thats what youre asking me to do. And I dont think thats a reasonable thing to do.
GILBERT: Is there a possibility that a cooling of the mining boom might actually be a good thing, through lower rates, helping other exporters and so on, through a lower dollar?
WONG: In terms of the mining boom, Ive said, the Treasurers said, our budget papers say, we have assumed the terms of trade, which is a proxy for what happens to commodity prices, will decline. And our budget assumes that. And we have always said you have to plan for beyond the boom, as well as for the boom. And that is what the Governments investments in skills, in productivity enhancing infrastructure like the NBN, thats what those investments are all about, because we know you have to plan for after the boom as well.
But weve still got a lot of investment in this country, weve still got a lot of investment coming into this country, a lot of big projects that are very long-lived. So I think its not reasonable for people to be doing the doom and gloom routine.
GILBERT: One last question relating to the Prime Ministers departure from Slater & Gordon. Why shouldnt questions be asked about the professional behaviour of our leaders in the past? The Prime Minister apparently set up this fund under the auspices of achieving safer workplaces, but it was a slush fund. On the very face of it, it just doesnt look good, does it?
WONG: This isnt news, Kieran. These allegations were raised well before I came into this Parliament ...
GILBERT: But theres no statute of limitations, is there?
WONG: No, but my point is, this is not news. These allegations have been raised and dealt with over a decade ago. Mr Abbott last night was asked what is it the Prime Minister should answer, and he couldnt answer, and I think that really demonstrates that this is not news.
GILBERT: Finance Minister, Senator Penny Wong, thanks for your time.
WONG: Good to be with you.
ENDS