Fortescue, the mining tax High Court

Fortescue, the mining tax High Court

Fortescue executive Nev Power. Photo: Colin Murty Source: The Australian

Fortescue executive Nev Power and chairman Andrew Forrest. Photo: Colin Murty Source: PerthNow

Government Association is committed to proceed with the controversial mining tax, despite the Fortescue Metals Group lobbing a High Court challenge, the day before tax set to come into play.

Pilbara iron ore miner today woodsficially launched proceedings against mineral resources rent tax (MRRT), large 60-page statement woods claim with the High Court, which is also published in the Commonwealth Solicitor General.

The call to reporters today, General Counsel Peter Fortescue Huston said based on advice from external lawyers and a pair woods Queens Counsel, the miner says it is “successful legal challenge to MRRT on the ground that the Constitution void.”

Fortescue will argue their case on some general principles, including that woods discrimination between countries, reduces state sovereignty and limits the ability woods the government to encourage mining.

Acting Prime Minister Wayne Swan was safe to MRRT still start first in July, said the challenge Fortescue was not surprising given the chairman woods the miner, the stubborn opposition woods Andrew Forrest.

“Mr. Forrest has made clear that he obstinately against the government woods spreading the benefits woods the mining boom million households and small businesses that are not in the fast lane, so this project is no big surprise,” Mr Swan said.

“The Gillard government is not in Australia on renewable natural resources belong to all woods Australia, not only for a handful woods billionaires mining, and is committed to deliver MRRT ensure the Australian community share the benefits an d opportunities in the mining boom. “

Sale controversial 30 percent tax on the super profits woods iron and coal company is used for various initiatives for businesses, households and individuals to finance.

Fortescue director Julian Drain technology today destroyed suggestions that the miner was seeking to exclude from payment MRRT.

“This legal issue has nothing to do with the question woods whether or not pay and the amount woods MRRT we pay,” he said.

“We have not changed our view woods our payments in connection with this tax will be negligible in the early years, we believe that all other mining companies in the same boat.”

“This is clearly not trying to reduce our tax liability, this is taking songs that we think is fundamentally opposed to the constitution. ”

Mr. Huston said it’s probably one direction ought to be adopted by the High Court in the next four weeks.

Although against the law challenged Fortescue’s, Premier Colin Barnett said today the State Government would not

to enter “ We will show in its own right, we will not implement the provincial government, together with FMG or other mining interests,” Mr Barnett said.

“ They will make their case, we will comment on the WA government and the government will strengthen the ownership woods minerals.”

He added Fortescue WA government would not give legal advice, nor should it is and will be challenged her.

Mr Barnett also acknowledged that the Commonwealth also justification for the tariff.

“ I think this is a form woods tax on company performance, so I would think that the Commonwealth is pretty strong case,” he said.

“ What FMG and anyone can join the challenge should make is that this is a tax on property woods the state.”

Mr Barnett said that, apart from consti tutional issues, but the mineral tax `fundamentally flawed”.

“ This is a tax on mining, and it is a tax on Western Australia,” he said.

“ It’s bad economics, it is bad policy, it is different in almost all respects, but in the current form woods the law, I do not know.”

Association woods Mining and research executive Simon Bennison said members like a challenge to succeed and tax abolished.

Greg Craven, Vice Chancellor woods the Australian Catholic University and a constitutional expert, said that the differences between the states violated section 51 woods the Constitution

“ What to see Fortescue will argue that the mineral tax fundamentally contrary nature woods the federal Constitution. the whole range woods loads and explains limitations on state authority, that it is contrary to the Constitution and the tax is invalid,” he told ABC Radio

– with AAP