An MP, whose electorate covers a large part of Western Australia’s Goldfields, has written a letter to the State’s Premier urging him not to consider an increase to existing gold royalty rates.
Member for Eyre, Graham Jacobs, is calling on Premier Colin Barnett to consult with the Liberal party room before making any decisions around a recently completed review of royalties.
The royalty rate in Western Australia currently sits at 2.5 per cent.
In the letter, Dr Jacobs expressed his concern that jobs in the Goldfields would be on the line if the rate was increased.
“Royalties seem to go up when governments become cash strapped and I don’t want to see that we choke the goose that lays the golden egg,” Dr Jacobs said.
“At this particular time in our state we do not need an extra tax which will actually produce less jobs,”
“We need more jobs in this particular economic situation that we find ourselves.”
The ABC is reporting that Mines Minister Bill Marmion will be discussing the findings of the review with the Premier this week.
“I get the advice of industry that there’s some uncertainty, I’d like to clear it up as soon as possible,” Mr Marmion said.
“We’ll discuss where it goes from there but my intention all along was to take it to Cabinet along with my recommendation so I’ll discuss that process with the Premier.”
“It is a fair and reasonable thing that companies pay a price to the people of Western Australia for the minerals they extract,” he said.
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