Barnett cool on iron ore inquiry
Colin Barnett has revealed Federal Treasurer Joe Hockey telephoned him about the prospect of a parliamentary inquiry into the iron ore industry last week and the Premier told him he “didn’t think it was a good idea”.
It came as Prime Minister Tony Abbott this morning stepped back from previous support for an inquiry, saying the last thing his Government would want to do would be to interfere in the market.
Xenophon still hopeful ‖ BHP defends record ‖ Minerals Council
Federal parliamentarians are currently considering calls by WA mining baron Andrew Forrest for increased scrutiny of BHP Billiton and Rio Tinto, which have ramped up production.
Iron ore prices have crashed in the past two years on the back of a surge in supply and slowing growth in China.
The collapse in ore prices has smashed the State Budget and led to the loss of hundreds of jobs across WA.
“I’ve said right from the outset that I believe the approach taken by the big iron ore miners … was a flawed business strategy – I still believe that but I equally have said that I don’t think any good can come out of a federal parliamentary inquiry,” Mr Barnett said this morning.
“If there is any evidence of anti-competitive behaviour that should be referred to the Australian Competition and Consumer Commission.
“If it’s not anti-competitive, the only other thing that could be done would be to impose restrictions on exports. That’s not in the interests of the iron ore industry, of Australia or WA.
“(An inquiry) would send the wrong message. I don’t think it would cause great damage but it could go off in any direction.”
Mr Barnett’s comments are a significant departure from remarks last month that he as Premier could pull “levers” to pressure iron ore multinationals not to expand their mines if they continued to flood markets.
““They need my approval to expand output, ” he said on April 18.
“This is our iron ore. The companies are inclined to forget that — as to who actually owns the iron ore.
“They don’t legally own it until it’s loaded on the ship. That’s my understanding.”
