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TOPIC: Miners dismiss claims of 'shock and ore' lobbying operation as fiction

Miners dismiss claims of 'shock and ore' lobbying operation as fiction 9 years 7 months ago #144051

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A spokesman for Rio Tinto said: We had no one in Canberra all week.
One of BHP Billiton's government relations executives was in Canberra on Wednesday but that was to attend the National Press Club address of Labor's treasury spokesman Chris Bowen.

Senator Nick Xenophon. Photo: Christopher Pearce

Sources in both companies conceded that telephone conversations with ministerial offices, primarily those of Industry Minister Ian Macfarlane and Trade and Investment Minister Andrew Robb, had gone on all week but denied there was any scaled-up lobbying campaign like the one described by the Fortescue chairman and Senator Xenophon.
Mr Forrest said: We literally saw plane-loads of lobbyists get flown in by the multinationals into Canberra and they never let up all week. You shouldn't be allowed to totally manipulate governments, which is what I think has been done here.
You saw the previous government flip, this government flip. The real question is do the multinationals have too much influence in this country?
Senator Xenophon said the iron ore inquiry, which was formally abandoned by Treasurer Joe Hockey on Thursday, was killed off by shock and ore .
Their statements have riled the major miners, with a source pointing out that it was Mr Forrest's persuasive lobbying of Senator Xenophon that almost saw an inquiry established in the first place.
Prime Minister Tony Abbott then gave weight to the push when he agreed with broadcaster Alan Jones last week that an inquiry was a good idea.
Mr Abbott began backing away this week after BHP Billiton chief executive Andrew Mackenzie described a potential parliamentary inquiry as a ridiculous waste of taxpayer's money in a radio interview.
It is understood that opposition within the government, including from Mr Macfarlane and Mr Robb, added to the pressure that resulted in Thursday's backdown.
Speaking in Tasmania on Friday, Mr Abbott said it was not clear what benefit an inquiry into the iron ore market would achieve and defended the processes that led to the idea for an inquiry being raised and shot down.
We talked to the various people in the sector and came to the conclusion - after the sort of consultation which sensible governments do - that a parliamentary inquiry was going to generate more heat than light. So we've decided not to go ahead with it, he said.
Some observers believe BHP Billiton and Rio Tinto were particularly concerned with the prospect of another parliamentary grilling after embarrassing details of their tax affairs were ventilated at the recent public hearings of the Senate inquiry into corporate tax avoidance.
Mr Forrest said: They dig it up for us and then they park enormous profits in Singapore and in other tax havens.
Fortescue wants an inquiry too look into claims that the major miners have actively supported a lower iron ore price to drive smaller competitors out of the market.
Mr Forrest argues Rio Tinto and BHP Billiton are signalling production increases to push down the price and drive his company out of business, a claim they deny.
No one has ever seen a chief executive talk down their own commodity price, try to hammer their own commodity price, he said. That is to get rid of all of the local Aussies who have sprung up in this industry, Mr Forrest said
Analysts are tipping a further slide in the iron ore price after China and Brazil signed a supply agreement this week.
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