The CFMEU has welcomed the passage of the Mineral Resource Rent Tax (MRRT) through the House of Representatives last night, describing it as a key step in addressing the economic imbalances created by the mining boom, but is calling on the Government for more to be done.

 “As a union that covers mining, construction and manufacturing workers, we are well placed to see the effects of the mining boom across the economy,” said Michael O’Connor, CFMEU National Secretary.

“The mining boom is hollowing out the broader economy. It is driving up the dollar, driving up costs, syphoning skilled labour from other sectors and damaging manufacturing, tourism and agriculture. It is putting pressure on mining communities and families. Under current arrangements, the costs outweigh the benefits.

 “This tax will go some way to sharing the benefits of the boom with the wider economy through measures such as increasing the superannuation guarantee,” said Mr O’Connor.

 The CFMEU believes the Government needs to do more to address the distortion created by the boom.

 “The Government needs to consider further measures to mitigate against the effects of the boom. First amongst these is to examine establishing a sovereign wealth fund,” said Mr O’Connor. “Such a fund, if properly managed, would invest in off-shore assets, putting downward pressure on the dollar and providing a legacy from the boom for future generations.”

 The CFMEU believes revenue for a sovereign wealth fund should come from the mining sector and be additional to the MRRT.

 “Government also needs to ensure that revenue from the MRRT goes to improving social infrastructure for families in mining communities,” said Mr O’Connor.