Pm dismisses suggestions that government policies ended mining boom
Australian Prime Minister Julia Gillard has said that claims by opposition leaders that the Labor's policies have brought an end to the mining boom in the country.
Opposition Leader Tony Abbott said that the slowing resource sector is due to the mining tax that cam into effect this July. The country's central bank, the Reserve Bank yesterday said that the investments in the sector will peak next year at a level that is lower than earlier estimates.
Abbott said that the earlier peak is due to the Government policy. He said that the mining tax was aimed at slowing the sector and it succeeded. He blamed the government for the bad policies that resulted in the slowdown in the sector.
Many believe that the resource boom in Australia, which helped the country better face the effects of a global economic slowdown, might be getting over. The mining industry is losing its momentum mainly due to weak demand from prime customer, China.
There have been major roll backs of projects and cuts in the country. BHP Billiton last week cancelled the $20 billion expansion of the Olympic Dam site and this has raised concerns over the future of projects including the expansion of Port Hedland iron ore export facilities.
Prime Minister responded by saying that Mr Abbott unfairly took the economy down when it was growing at trend rates. "We have got a resources boom where we are yet to see the investment peak and the production peak," she said.