The Federal Government is calling on the burgeoning coal seam gas mining industry to take account of the community concerns that are being raised by crossbench MPs who could block the mining tax.
Independent Tony Windsor now believes drilling projects in sensitive areas of prime agricultural land should stop while a scientific study is done on their impact. He is also demanding a boost to the Federal Government's powers to halt state-approved projects.
The legislation for the mining tax was finally introduced yesterday, but might not go to a vote in the House of Representatives before Parliament rises at the end of the month.
Mr Windsor is demanding curbs on coal seam gas exploration and hundreds of millions of dollars spent on environmental research programs in return for his support for the mining tax.
The Greens want the tax to take a greater share of the profits of mining companies.
Resources Minister Martin Ferguson said the tax was a one-off opportunity for the nation to obtain a fair return from its non-renewable resources.
''We have got a planned or committed capital investment pipeline of $430billion in the commodities sector,'' he said.
Community sentiment had turned in favour of the proposed tax, he said.
Mr Ferguson said while coal seam gas drilling was not a new industry, it was growing too quickly. ''No one saw $45billion in this new industry,'' he said. ''They've concentrated on their investment decisions, they've now got to concentrate a little more on their community engagement.''
Mr Windsor said he believed the Government was seriously considering his demands on coal seam gas. ''I am encouraged that the Government is engaged in trying to come to some sort of resolution,'' he told ABC Radio. ''The inference that I am getting is that they are willing to have a serious look at this.''
Acting Prime Minister Wayne Swan repeated the Government's message that the mining tax would allow the community to share in the wealth generated by the nation's booming resources sector.
The 30 per cent minerals resources rent tax will apply to the most profitable coal and iron miners from next July.
The revenue will fund a cut in the corporate tax rate, tax breaks for small business, boost retirement savings and assist with critical infrastructure projects.
A public opinion poll this week found 81 per cent of respondents supported a tax on very profitable mining companies.
Mr Swan said discussions with Mr Windsor and other cross-bench MPs were constructive but would not say if he was prepared to spend more money to win their vote. Tasmanian independent Andrew Wilkie hopes the Government will change the threshold of the mining tax, saying that depreciation provisions favour three big companies and are a disincentive to smaller miners.
The Greens are expected to support the tax after losing a request to return to the 40 per cent super-profits tax and to expand the tax to include gold miners. The National and Liberal parties will vote against the tax.
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