mining
29 Sep 2011
Gina The Lion Heart
By Adam Brereton
Australia's richest person has a vision of a northern libertarian paradise where the taxes are low and the workers are foreign. Adam Brereton looks closer at Gina Rinehart's brave new world
Gina Rinehart, Australia’s richest person — tipped to reach the position of World #1 — has penned a curious and revealing op-ed for the latest edition of Australian Resources and Investment magazine. In it, she expands on a vision that has long represented her Shangri La: a northern Australian free-trade zone, unencumbered by taxation and populated by plentiful temporary labour from overseas.
Rinehart’s editorial and, by extension, her desire for a northern libertarian paradise, is motivated by opposition to the Labor government’s proposed carbon and mining taxes, which demonstrate, Rinehart says, a "fundamental lack of understanding of how the resource and mining sector operates". It’s curious for the reason that, like Rinehart’s previous writing on the topic, it’s almost devoid of statistics or evidence of any kind.
There are two main thrusts to her arguments in favour of the free-trade zone.
First, new taxes from the federal Labor government are killing investment in mining, forcing companies offshore and slowing the breakneck pace of the boom — you’ve heard this all before, and the enormous profits posted by companies like Rio Tinto, XStrata and Rinehart’s own company, Hancock Prospecting, should be enough to wipe the tears from your eyes at the plight of our struggling mining executives.
Rinehart’s second point is more bizarre and is a stalking horse for her real desires, if not those of the industry at large. Australians don’t want to live in sweltering Northern Australia where all the goodies are buried, so we need to regulate them less, tax them less and cut payroll and company tax, stamp duty and the like to make it more economically attractive to relocate. Failing that, we should "…consider the terrible plight of very poor people in our neighbouring countries in Asia. We should, on humanitarian grounds, give more of these people the opportunity of guest labour work in Australia."
We might also be able to provide adequate services for the disabled, elderly and war veterans, Rinehart says, if we were permitted to bring in Asian guest workers.
If you can move past the mindbogglingly shameless rent-seeking of a woman tipped to soon be personally worth $100 billion, whose philanthropic efforts have mainly taken place offshore (with the exception of naming a school hall after her mother, obviously), there are a couple of big holes here.
Financial incentives to work in mines are already ridiculous. The average wage in mining is $149,000 and tradies can usually earn more. Pay incentives are offered for workers who stick around for a year or longer in many cases. Expenses are frequently paid, and the notorious variations on FIFO (fly in fly out) mean workers don’t have to live on site permanently.
Yet there is still a shortage of semi-skilled labour in the mining sector. Turns out people have other reasons aside from economic ones for choosing where they live. The FIFO lifestyle not only impedes take-up of jobs in the sense that shift-work and camp living precludes family and community engagement, but it wrecks nearby rural communities that are quickly becoming mining-company vassals.
Anecdotally this is common knowledge, but one academic report published in the British Journal of Criminology on the topic of FIFO violence paints a more thorough picture: acute housing shortages, endemic alcohol-fueled violence and resentment of FIFO workers by locals is the rule, rather than the exception.
So when Rinehart talks about mining companies supporting communities and proposes a free-trade zone to incentivise growth, we should keep in mind that the huge financial incentives for young men to work in the mines are the cause of many mining communities’ woes, in turn making it less attractive for others to move up north.
All the chest-beating about community development, economic incentives for Australians and the like is just wrapping for Rinehart’s real desire: to bypass all the costs associated with luring Australians to the NT, or training locals, and the direct and indirect costs mining has to bear from FIFO, by importing massive quantities of semi-skilled (read: unskilled) guest workers. After all, guest workers eliminate the need for the ‘fly-out’ part; just fly them into the camps and leave them there until the ore’s dug up. Plus, you don’t have to pay them $200,000 to weld for you.
I’ve written previously about the new Enterprise Migration Scheme tailored to do just this, and the lack of scrutiny over its ethical implications. But Rinehart’s comparison of choice — Singapore — is another good case study for why guest workers will always be exploited to fuel economic booms. In Singapore, writes Peter Mares in Inside Story, "unskilled temporary migrant workers do not have the right to marry, or cohabit with a Singapore citizen or permanent resident. Female non-resident workers have to undergo mandatory pregnancy tests every six months, with the threat of immediate deportation in the case of a positive test result". Truly, as Gina says, "attitudes need to change before we can achieve Singapore’s fortunate and compelling position".
In the trade-off between individual rights and economic gains, Mares says, "migrant workers may be willing to do so to an extent that is likely to be considered unacceptable". Like, for instance, living in mining camps in the NT, receiving a ‘humanitarian’ wage from Rinehart and co.
Spurious proposals for a Northern Australian free-trade zone have everything to do with labour, little to do with incentivising exploration and nothing to do with community building. If it weren’t being pushed in mining-owned publications and the SMH’s opinion pages, where Rinehart has a $50 million stake, there’s a good chance we wouldn’t be hearing about it at all.
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- David Skidmore
Posted Thursday, 29 September 11 at 10:55AMI long for the day when I see her personally hauling huge chunks of bauxite over a 12 hour shift.
This user is a New Matilda supporter.
tomwoodcock
Posted Thursday, 29 September 11 at 11:12AMSo her vision of Australia is fewer taxes and more slaves?
She doesn’t seem like a terribly nice person
Frank from Frankston
Posted Thursday, 29 September 11 at 11:29AMAny labour shortages in the North are totally the fault of incompetent National Leadership.
What’s the name of the Task Force PM Gillard has created, that can direct resources such as education and training, to utilising dormant capacities in the bloated cities for use in the North?
That’s right.
It doesn’t exist.
A failure of leadership you cannot spin.
What’s THE phone number, website, the Rineharts of the world have setup to ensure no shortages exist?
That’s right.
It doesn’t exist.
Another failure of leadership.Jandamarra
Posted Thursday, 29 September 11 at 12:18PMNo wonder she is paying for Bolts report or misinformation report. Its funny how right wing lunatics attract each other, Rhinehart, Murdoch and Bolt - all apart of the Chanell 10 family.
Sticky
Posted Thursday, 29 September 11 at 2:56PMExample the towns of Newman, Port Hedland, Onslow, Tom Price where FIFO people draw on the local habitat resources and contribute no social benefits. The Hancock interests cost accountants, like all the other mining enterprises just love the easy money method of FIFO. Total disregard for the human condition and the future of centres near mines. Young Australians today are under educated and under employed due to the imbalance in the economy over the last 30 years caused by the dreams of mining magnates and their management groups.All exhibited by you know who, being a leader against fair taxation and social investment in the future development of Australia.
Dr Dog
Posted Thursday, 29 September 11 at 3:10PMI have said before and will again - this is the sort of situation that the tall poppy syndrome was created to address. Back in the day we would have laughed in Rinehart’s face because she is clearly a self-interested, rich twerp.
Why any credence is being given this detestable fat cat’s musings on the proper way to run a society is beyond me. Any educated media person, even a lickspittle like Andrew Bolt, should be able to see the barely contained greed at the heart of these ‘ideas’ and reject them on that basis alone.
Frank, everything bad that has ever happened is due to a lack of national leadership. Cyclone Yasi was sent by Jesus because Gillard failed to implement a mining resources tax. My own dog was hit buy a car because we are in deficit.
Warwick Rowell
Posted Thursday, 29 September 11 at 4:33PMWarwick Rowell
The really terrifying thing about this is that we seem to be on a single track to that result anyway, through a huge increase in demand for labour that we can not meet with Australian workers. And then there is the overarching moral question: Are we contributing to the destruction of the biosphere through assisting in bringing the billions in China, India to our consumerist living standards? While making Twiggy and Gina even wealthier? They have no interest in addressing this fundamental moral issue.
Lang was a good bloke - he and my Dad knew each other well.
2353
Posted Thursday, 29 September 11 at 8:42PMIs this the same Gina Rinehart that supports financially a certain Andrew Bolt - who has a real problem about immigration into Australia?
**************************************************Save the earth, it’s the only planet with Chocolate.
outrider
Posted Thursday, 29 September 11 at 8:52PMOutrider
When I was in Perth recently I heard that the reason why it is hard to get workers up north on the mines is the strict drug testing regimes.
Anybody know or heard anything?Sean Bozkewycz
Posted Friday, 30 September 11 at 1:47AMQuote from the ANDEV website where’s Rinehart’s article appears:
‘The mafia constructed Las Vegas because of 2 things. Guts and Determination. Whatever happened to guts and determination in Australia? Why can’t we do it?’
I think it’s more like greed and utter contempt for the environment that drive Vegas and the Australian resource boom.
Utter nonsense on the ANDEV site. Good thing we’ve got NM.
lev_lafayette
Posted Friday, 30 September 11 at 9:31AMThese libertarian capitalists equate freedom with their property ownership, and especially the right to control the earth to the exclusion of others.
It is apparently increasingly common among the landlords of the mining industry as the this article, and the following shows:
http://exiledonline.com/how-an-australian-oligarch-is-using-dirty-tricks…
Fortunately there is a different sort of libertarianism as well.
http://isocracy.org
http://www.facebook.com/groups/136650247831/Marga
Posted Friday, 30 September 11 at 3:12PMWell, that’s what you get when you let individuals ‘own’ nature’s products and do not charge for the privilege - so that the whole community may benefit.
Rockjaw
Posted Friday, 30 September 11 at 4:46PMPerhaps Rinehart should consider Africa instead.
Now that Africa has learned exactly what the benefits of socialism really are they might remove their socialist politicians from power and seek alternatives.
Now that socialist Africa has taxed, regulated and controlled their industries to the point that all but a few African socialist politicians are able to survive economically, perhaps now it will be Africa, and not Australia, which is ready to attract the investment capital and the entrepreneurs which are able to lift Africa out of the hands of socialism, the IMF and the grinding poverty which accompanies central planning and unchallenged socialism.
Perfidious Rex
Posted Saturday, 01 October 11 at 8:43AMLev
Isocracy seems like a philosophy for libertarians who like to see lots of people getting shot? Very Zimbabwe!
Public ownership of natural resources is an interesting concept that seems to perpetuate the idea that our miners and farmers simply find valuable commodities lying around and sell them. I don’t recall isocracists, leftist libertarians or lefties generally getting quite so passionate about owning our natural resources when exploration licenses are being offered up. Nor do I recall seeing too many working the “easy life” as a farmer.
Personally I would rather live with the Gina Rineharts then have to worry about when “the people” are going to come on to my property to enforce their rights to “equality”. I didnt notice Gina suggesting that people should be conscripted to go work in her NT paradise so I will probably just pass the opportunity up. PR
lev_lafayette
Posted Saturday, 01 October 11 at 11:31AMPerfidious,
I have no idea how you make the comparison with Zimbabwe.
Regarding public ownership of natural resources, there is no suggestion at all that miners and farmers etc, “simply find valuable commodities”. That is a misrepresentation of the position and cannot be taken seriously. It is basic economics to differentiate between unimproved value and improved value of natural resources. Exploration, extracting and farming constitutes additions to unimproved value.
For an easy introduction to the subject I would recommend some of the accessible essays by Dan Sullivan.
Are You A Real Libertarian or A Royal Libertarian?
http://geolib.com/essays/sullivan.dan/royallib.htmlGeoism and Libertarianism
http://www.progress.org/archive/fold251.htmGeoanarchism
http://www.anti-state.com/geo/foldvary1.htmlHope this helps,
Lev Lafayette http://isocracy.org
Perfidious Rex
Posted Saturday, 01 October 11 at 2:20PMI will take a look. Thanks.
To be clear - the “lying around” comment was metaphoric/tongue in cheek!
Marcaspa
Posted Saturday, 01 October 11 at 3:46PMWell said Dr Dog.
I have this awful vision of Rinehart dressed in leather, flogger in one hand, dog leash in the other hand - said leash attached to a sitting Bolt’s leather collar - Bolt - ball gagged - all quiet now. I need brain bleach NOW!
Sunday, October 2, 2011
Gina The Lion Heart or Gina the Trojan Horse? | Matilda #Ausmedia #Auspol
via newmatilda.com
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