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Start ad blitz, Labor tells goldminers

Turning up the heat: Gold industry urged to fight royalty increase moves. Picture: Supplied

Opposition Leader Mark McGowan has urged the gold industry to launch a politically damaging advertising campaign against the Barnett Government over its possible plan to raise royalties on the precious metal.

Mr McGowan made the suggestion after a request from the gold-miners' lobby group for a Labor commitment to support a disallowance motion in Parliament against any increase to gold royalties.

The Gold Royalties Response Group - a lobbying coalition of 11 goldmining companies and three industry associations - has secured written commitments from Mr McGowan, Labor's leader of the Upper House Sue Ellery and Greens MLC Robin Chapple to support any disallowance motion that is brought to the Legislative Council.

Royalty rates are set by regulations linked to the Mining Act and can be disallowed in the Upper House.

There is nothing preventing the Government from trying to reintroduce a disallowed regulation but it would be a black eye for the Government. The Nationals WA has indicated it also opposes any gold royalty rise, threatening another big policy split between the Liberal and National partners in Government.

While Nationals leader Terry Redman has stopped short of committing to support a disallowance, he wrote to the GRRG late last year stating the party's policy position.

Mr Redman told _The Weekend West _: "It's my understanding that any change would be subject to a parliamentary process.

"I'm very clear on what my party's view is on this issue and I will reflect that in any discussions in Parliament or elsewhere."

In a letter to the GRRG, Mr McGowan wrote: "(A) disallowance motion alone is not going to prevent an increase in gold royalties, if that is the course of action the Barnett Government eventually decides to take.

"What is also needed is a strong advertising and public campaign against the Government and its plans . . . similar to the campaign that was run against Federal Labor during the mining tax debate."

The Barnett Government's Budget has already factored in about $600 million of revenue from its royalty review process, which is yet to be formally decided by Cabinet.

The GRRG has been furiously lobbying as many as 20 Liberal MPs in a bid to convince the Premier to abandon any rise in gold royalties.

GRRG spokesman and Doray Minerals chief Allan Kelly said WA mining companies would fight to protect their workers' livelihoods.