Federal budget delivers broken promise

The Association of Mining and Exploration Companies (AMEC) has expressed its disappointment in the Rudd Government's failure to deliver on a key election promise - Flow Through Shares.

The Association of Mining and Exploration Companies (AMEC) has expressed its disappointment in the Rudd Government’s failure to deliver on a key election promise — Flow Through Shares.

AMEC chief executive Simon Bennison said the budget missed an excellent opportunity to shore up investor confidence, secure jobs and stimulate economic activity in the regions.

“The mining and exploration sector appreciates the Government’s contributions to infrastructure, particularly the NSW Hunter Expressway and ports in the Northern Territory and Western Australia, but we are deeply disappointed that the Government chose to delay Flow Through Shares (FTS) yet again,” Bennison said.

“FTS will deliver both immediate and long term benefits to every Australian, at a relatively low cost to Government.

“Allowing companies that are not yet in profit to pass on their unused tax credits to investors will provide a much needed boost to investor confidence.

“As investment in the sector improves, companies will be willing to spend more of their cash reserves on new projects. That will, in turn, create immediate employment as well as generate a long term pipeline of royalties for the benefit of all Australians for generations to come. However, the Government has chosen to bind its pre-election commitment in the red tape of the Henry tax review, practically guaranteeing that it will not be delivered in this term of Government.

“The Government’s decision to not deliver FTS will amount to a broken election promise unless the Prime Minister intervenes and implements his commitment immediately.

“This lack of action is very disappointing and represents a missed opportunity to genuinely improve Australia’s immediate and long-term economic, social and employment benefits.”

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