Aib' ~ 1A! A1IA
F-* flw PRM^ E J'ANISTER
FOR PRESS . U NOVEMBRR 1977
COMMONWEALTH TO AID MT. LYELL
The Commonwealth Government will meet almost all the cost of
interim assistance to keep the Mt. Lyell copper mine going at
Queenstown on the west coast of Tasmania.
The decision was made today after the Tasmanian Premier,
Mr. Neilson, told the Minister for Employment and Industrial
Relations, Mr. Street, and the Minister for Business and Consumexr
Affairs, Mr. Fife, that Tasmania was not prepared to continue to
share equally with the Commonwealth in interim arrangements which 9
were announced on August
Prior to the meeting with the Tasmanian deputation, the Minister
for Environment Housing and Community Development, Mr. Newman,
and the Member for Braddon, Mr. Groom, met Mr. Street and Mr. Fife
and stressed the importance of the Mt. Lyell mine to Tasmania. J
At the Ministers' meeting the Premier said that if the Tasmanian
State Government were asXed to continue with the dollar for dollar
agreement, he would have no alternative but to tell the people
that the mine would have to close.
The issue of the Mt. Lyell mine has major social implications.
Because of the Commonwealth Government's deep concern for the
peoplecf Queenstown and for the people of the west coast who
rely heavily on the mine, it has decided to make it possible
for the mine to keep going. This will inject confidence into
the area.
In these circumstances, the Commonwealth has decided to meet the
full cost of the advance to safeguard the cash position of
Mt. Lyell, less the amount of payroll tax collected by the
State Government.
There are great benefits to Tasmania in enabling Mt. Lyell to
keep going at Queenstown.
The Commonwealth is disappointed that the Tasmanian Government
is not prepared to share this responsibility equally with the
Commonwea Ith. / Hiowever,
However, the Commonwealth Government is not prepared to
allow the Mt. Lyeli copper mine to be closed at a time when
the w'hole of the Australian copper industry is under
examination by the Industries Assistance Coimission.
Present Conumonwealth legislation provides for a 50-50
sharing arrangement with the Tasmanian Government.
In the present circumstances, the Con mfonwealth is prepared
to advance ahead of time tax reimbursements to Tasmania to
allow regular payments to be made to Mt. Lyell.
Legislation will be introduced as soon as possible into the
new Parliament to give effect to today's decision.
The Tasmanian Government collects about $ 475,000 from
Mt.' Lyell in a full year as payroll tax. It will nowbe asked to
forego payroll tax for approximately eight months.
The Commonwealth Government will meet the balance of the
estimated $ 4.8 million in short-term assistance recommended
last month by the I. A. C.
The I. A. C. Report on the Australian Copper Industry is
expected to be brought down in the first half of next year.