Mining Tax Aggravates Australian Sovereign Risk

　 RotHSchild, Australia's executive chairman, Trevor Roy, TrevorRowe, is 67 years old, but has a clear word and a clear view. (TrevorRowe) He is a senior businessman in the Australian investment community and has several decades of investment banking experience. From the earliest to help Solomon brothers set up an Australian Office, later to join Citigroup, and then to become bank of Rothschild in 2005, his career was basically in investment circles. Today, he is also a member of the board of supervisors of the FutureFund of Australia's sovereign wealth fund and a director of the Australian Stock Exchange.

Perhaps it is because of his senior status that he dares to go to the Australian government. Mining tax Policy criticisms include direct recommendations to finance minister Swan. He believes that China's investment in Australia is facing the same difficulties as investors from Japan and the United States in the last century, and therefore has a clear sympathy and understanding of investors in Australia. The following is part of a reporter's interview with him in Sydney:

You think Resource lease tax Will it affect industrial development, or is the industry exaggerating this influence?

Lowe: at first glance, I think this is a tax on the fringe, which is not a big problem like many people understand. My problem is proving, because I don't know the details.

Another thing is that the new Australian Prime Minister has shifted the scope of the discussions. Carbon tax 。 This is beginning to complicate the various tax systems of the entire resources and infrastructure industries.

Do you think this tax policy will affect foreign investment?

Roy: I am sure that it has caused concern about mines in China, which I call sovereign risk. If you invest in accordance with today's regulations, this tax applies to existing mines.

I told the Australian finance minister privately that the tax should not be applied to existing mines, which broke the trust of foreign investors or local investors. Therefore, in my view, this policy is a bad policy because of the fact that the investment has been solved.

If you are a foreign investor in Australia, you will think that if I invest now, how likely is the government to levy a tax that may affect my future profits? I think this is unreasonable, creating a precedent and increasing sovereign risk. So when I talked with companies from China, Japan and even the United States, they are all concerned about this problem. They didn't pay much attention to this problem in Australia a year ago. This is an unprofitable policy plan because it has not been negotiated.

When we asked the federal government and the state government about the problems encountered by Chinese companies in Australia, they did not respond to our statements. Is this because they have no motivation?

Roy: you need to understand what the driving force of politicians in this country is, the debate between the media and the public.

I think if I am a Chinese enterprise, I will not be willing to make it public because I am a foreigner. In my view, what Chinese enterprises should do is win support from BusinESs Council ofChina and BCA, and push them forward in the public sphere, because politicians only respond to things that exist in the public sphere. Like super profits tax is a typical case. The mine owner launched a media attack and forced the government to give in.

Go to Canberra for tea, and then say that I am very concerned about this matter. A politician will not pay attention to it. They only respond to pressure, so you have to know what to do.

There are two things that are sure to happen in Australia. First, Australians must understand the need for investment in China, because Chinese investment has become a reality. Second, China needs to understand what our problems are and how we operate.

Speaking of immigration policy, do you think the Gilad administration will make a real change compared with the previous government?

Roy: it's too early to make a judgement. This is a bit difficult because Gilad is restricted by the coalition government around him and the greens and independents. She needs to deal with them now, so it can be summed up in an American expression: there is no conclusion yet ("thejury s still out"). I'm not sure.

In the public debate, what interest groups support China's investment in the resource industry?

Roy: it's a little strange. I am a member of the Rowe School of international policy. Luo Weiceng made a survey, and about 63% of Australians believed that China was lucky to import our coal and iron ore. 53% of the population is very worried about China's investment in Australia. So you can see this paranoia. Indeed, we like China as our economic partner, but we are also very worried about China's investment. Although they were noisy, they didn't know why.

When the Japanese came to invest in the 80s of last century, we met the same RotHSchild, also known as Rothschild bank, Australia's executive chairman, Trevor Roy (TrevorRowe), who was 67 years old, but he had a clear word and a clear view. He is a senior businessman in the Australian investment community and has several decades of investment banking experience. From the earliest to help Solomon brothers set up an Australian Office, later to join Citigroup, and then to become bank of Rothschild in 2005, his career was basically in investment circles. Today, he is also a member of the board of supervisors of the FutureFund of Australia's sovereign wealth fund and a director of the Australian Stock Exchange.

Perhaps because of his senior status, he dared to criticize the Australian government's mining tax policy, including direct suggestions to finance minister Swann. He believes that China's investment in Australia is facing the same difficulties as investors from Japan and the United States in the last century, and therefore has a clear sympathy and understanding of investors in Australia. The following is a part of the interview by Caixin reporter in Sydney:

Do you think that the resource lease tax will affect the development of the industry, or is the industry exaggerating this influence?

Lowe: at first glance, I think this is a tax on the fringe, which is not a big problem like many people understand. My problem is proving, because I don't know the details.

Another thing is that the new Prime Minister of Australia has shifted the scope and is currently discussing carbon tax. This is beginning to complicate the various tax systems of the entire resources and infrastructure industries.

Do you think this tax policy will affect foreign investment?

Roy: I am sure that it has caused concern about mines in China, which I call sovereign risk. If you invest in accordance with today's regulations, this tax applies to existing mines.

I told the Australian finance minister privately that the tax should not be applied to existing mines, which broke the trust of foreign investors or local investors. Therefore, in my view, this policy is a bad policy because of the fact that the investment has been solved.

If you are a foreign investor in Australia, you will think that if I invest now, how likely is the government to levy a tax that may affect my future profits? I think this is unreasonable, creating a precedent and increasing sovereign risk. So when I talked with companies from China, Japan and even the United States, they are all concerned about this problem. They didn't pay much attention to this problem in Australia a year ago. This is an unprofitable policy plan because it has not been negotiated.

When we asked the federal government and the state government about the problems encountered by Chinese companies in Australia, they did not respond to our statements. Is this because they have no motivation?

Roy: you need to understand what the driving force of politicians in this country is, the debate between the media and the public.

I think if I am a Chinese enterprise, I will not be willing to make it public because I am a foreigner. In my view, what Chinese enterprises should do is win support from BusinESs Council ofChina and BCA, and push them forward in the public sphere, because politicians only respond to things that exist in the public sphere. Like super profits tax is a typical case. The mine owner launched a media attack and forced the government to give in.

Go to Canberra for tea, and then say that I am very concerned about this matter. A politician will not pay attention to it. They only respond to pressure, so you have to know what to do.

There are two things that are sure to happen in Australia. First, Australians must understand the need for investment in China, because Chinese investment has become a reality. Second, China needs to understand what our problems are and how we operate.

Speaking of immigration policy, do you think the Gilad administration will make a real change compared with the previous government?

Roy: it's too early to make a judgement. This is a bit difficult because Gilad is restricted by the coalition government around him and the greens and independents. She needs to deal with them now, so it can be summed up in an American expression: there is no conclusion yet ("thejury s still out"). I'm not sure. {page_break}

In the public debate, what interest groups support China's investment in the resource industry?

Roy: it's a little strange. I am a member of the Rowe School of international policy. Luo Weiceng made a survey, and about 63% of Australians believed that China was lucky to import our coal and iron ore. 53% of the population is very worried about China's investment in Australia. So you can see this paranoia. Indeed, we like China as our economic partner, but we are also very worried about China's investment. Although they were noisy, they didn't know why.

When the Japanese came to invest in the 80s of last century, we encountered the same problem; in 70s, when Americans invested, we also had the same problem. This problem has a long history and needs to be solved.

When it comes to those who support China's investment, BCA and people like me understand that we are a capital importing country. We need huge resources projects to invest overseas. Do we need to manage the rules of these investments?

What about trade unions? Are they barriers to foreign investors?

Roy: under the leadership of the first three governments of Keating, Howard and Kevin Rudd, our working environment is very comfortable. But now workers' activities are increasing, especially in the mining industry, so the level of trade union activities is rising. The fact is that only 20% of all Australian workers join unions, so this problem is not as serious as it was decades ago.

But this problem still needs to be dealt with. I am chairman of a company called UGL. We provide engineering services for the resource industry. We believe in the fairness of the workplace. We have strict safety and occupational health mechanisms to ensure staff's attention and fair and equitable pay. As long as we care for employees in the right way, most companies like ours have no serious problems.

Australia's mining industry and farmers also have conflicts of interest and limited resources, do they?

Roy: there are some problems. For example, the blast furnace consumes a lot of water. Old problems like this also exist in China. Problem; when Americans invested in 70s, we also had the same problem. This problem has a long history and needs to be solved.

When it comes to those who support China's investment, BCA and people like me understand that we are a capital importing country. We need huge resources projects to invest overseas. Do we need to manage the rules of these investments?

What about trade unions? Are they barriers to foreign investors?

Roy: under the leadership of the first three governments of Keating, Howard and Kevin Rudd, our working environment is very comfortable. But now workers' activities are increasing, especially in the mining industry, so the level of trade union activities is rising. The fact is that only 20% of all Australian workers join unions, so this problem is not as serious as it was decades ago.

But this problem still needs to be dealt with. I am chairman of a company called UGL. We provide engineering services for the resource industry. We believe in the fairness of the workplace. We have strict safety and occupational health mechanisms to ensure staff's attention and fair and equitable pay. As long as we care for employees in the right way, most companies like ours have no serious problems.

Australia's mining industry and farmers also have conflicts of interest and limited resources, do they?

Roy: there are some problems. For example, the blast furnace consumes a lot of water. Old problems like this also exist in China.