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The wall of Ruddspeak

By Julie Bishop - posted Tuesday, 8 June 2010


The government claimed that despite increased profits the mining companies paid only an additional $9 billion in tax over the past decade. Not true. That figure relates to royalties paid to state governments and ignores company, payroll and other business taxes.

The government claimed that multinational mining companies paid an effective tax rate of 13 per cent and domestic mining companies paid 17 per cent. Ministers Gillard and Swan claimed that as a "cold hard fact". Not true. These figures came from a draft student research paper at the University of North Carolina which has since been dismissed as not relevant to the debate in Australia.

The government said that the effective tax rate was 17 per cent, based on a paper prepared by three Treasury staff. Not true. The Treasurer's own economic note of May 9 shows that the current effective tax rate for mining companies is up to 45 per cent.

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The government claimed the proceeds of the proposed super tax on mining would fund an increase in compulsory superannuation contributions from 9 per cent to 12 per cent. Not true. The increased contribution will be paid by employers.

The government claimed that it was necessary to spend $38 million in taxpayer-funded advertising to counter the advertising campaign by the mining companies. Not true. The government decided to spend the money and mount the campaign before the tax was even announced.

It is true that the mining companies have been placing advertisements in the media, sending letters to shareholders and filing notices with the ASX which contain information about the impact of the super tax on their operations. Mr Swan has dismissed such statements saying the mining companies are either "lying" or "ignorant".

The public statements of mining companies are governed by law, including provisions in the Corporations Law and the Trade Practices Act. It is an offence for directors to make false, misleading or deceptive statements, punishable in a court of law.

The Rudd government's Gang of Four - Rudd, Swan, Gillard and Tanner - can only be judged in the court of public opinion.

Such is the level of public discourse from this government that anyone who disagrees with it is subjected to abuse, denigration and personal attack. Disagree with the government's Carbon Pollution Reduction Scheme and you're labelled a sceptic or a denier. Disagree with the government's Resources Super Profits Tax and you're called a liar or ignorant.

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These are the actions of a desperate government desperate to cling to power.

Which brings me back to 1984. George Orwell introduced the term "duckspeak" meaning to speak without thinking, as in the ceaseless and thoughtless nonsense sprouted by some politicians, quack-quack-quacking away.

Kevin Rudd on the super tax? "Quack foreign mining companies quack quack fair share quack quack working families quack quack quack misinformation quack national emergency quack quack quack." No one is listening.

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First published in the National Times on June 2, 2010.



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About the Author

Julie Bishop is the Federal Member for Curtin, Deputy Leader of the Opposition and Shadow Minister for Foreign Affairs.

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