Australia must not abandon promise on mining tax transparency
IMMEDIATE RELEASE
The Australian Government is walking away from its promise to join a tax transparency initiative for the mining, oil and gas industry, despite support from major companies and civil society.
Key points:
· In 2016, Australia pledged to join the Extractive Industries Transparency Initiative (EITI), the global standard of tax transparency for the mining, oil and gas industries, following a successful pilot project.
· Under the EITI, companies publish their payments to governments and governments publish what they receive.
· EITI countries include Norway, UK, Germany and 50 more. Companies that support the EITI include BHP, Woodside, Rio Tinto, Oil Search and Shell.
· Australia has supported EITI since 2006, and since 2011 has provided funding to the EITI globally and to developing countries, yet hypocritically has not kept its promise domestically.
· Australia’s EITI bid has stalled since 2019. Resources Minister Keith Pitt refuses to convene a meeting of the multi-stakeholder group that oversees the bid, effectively abandoning it.
“This group has worked together, quietly and constructively, throughout a time of major political upheaval around mining and taxes. It is not something that should be thrown away lightly.”
“The Government is ignoring the track record of Australia’s EITI participants, which include BHP, Rio Tinto, Transparency International Australia, CFMEU, and Publish What You Pay,” said Rod Campbell of The Australia Institute.
“Australia’s current voluntary approach to transparency lets some resource companies hide in the shadows. Companies don’t have to publish how much tax and royalties they pay, and owners of private companies can remain anonymous to avoid scrutiny and regulations.”
“The Morrison government should show leadership and commit the resources sector to the highest standards of transparency” said Clancy Moore, from Publish What You Pay.
“Minister Pitt’s refusal to move forward with the EITI increases the risks of corruption both here in Australia and in other countries where Australian mining companies operate.”
“This will hurt communities through lost revenue and damage the reputation of Australia’s resource sector at home and internationally.” said Serena Lillywhite from Transparency International Australia
“Communities expect and deserve transparency from mining companies about their contributions and actions, whether it’s taxes and royalties paid, land rehabilitation or community support.
“While some mining companies operating in Australia understand that transparency is vital to maintaining their social license to operate, others need to be held to account when it comes to reporting timely and accurate information.” Said Peter Colley, from the Mining and Energy Union.