The message from mining magnate Gina Rinehart that the Government is spending too much of the industry's spoils has resonated with a crowd of mining executives in Melbourne. Another mining boss, Ian Plimer, told the conference there is no mining boom.
EMILY BOURKE: Mining boom, what mining boom?
That's the overwhelming message the mining sector is sending from an industry summit underway in Melbourne today.
Mining magnate, Gina Rinehart, used the event to take a swipe at the Government for spending up big on the back of the industry's success.
The director of Roy Hill Holdings, Ian Plimer, told the gathering the industry is under siege.
Although he didn't hear Gina Rinehart's address, the shadow treasurer Joe Hockey has assured the industry he's listening to the message.
Simon Lauder was at the conference and he filed this report.
SIMON LAUDER: Australia's richest person had the honour of being the first guest to address the Australian Mines and Metals Association conference in Melbourne today, but she wasn't in the room.
In a pre-recorded speech, Gina Rinehart warned that Australia risks following the eurozone into financial and social chaos.
GINA RINEHART: Too many of our governments seem to have had their thoughts clouded by six record years of revenue. They seem to think the ATM would never empty and never need refilling. They seem to think we could somehow afford to be increasingly cost uncompetitive and become deeper in debt.
It is as if Spain, Greece, Britain, Italy and Portugal have no warnings to give us about the similar path we are now taking. It is as if their struggles with unemployment, riots, increased crime, debt and a sheer lack of money for even essential services have nothing to teach us.
SIMON LAUDER: The message resonated with an audience of mining industry executives.
MINING INDUSTRY EXECUTIVE: It is very enlightening. Certainly the right message about the resource sector and the importance of it. We're very much behind it. There's no doubt about that.
MINING INDUSTRY EXECUTIVE 2: I thought it was great, yeah, no problems at all.
SIMON LAUDER: Do you agree with what she said?
MINING INDUSTRY EXECUTIVE 2: Yeah, 100 per cent.
SIMON LAUDER: Too much tax?
MINING INDUSTRY EXECUTIVE 2: Too much of everything.
SIMON LAUDER: Gina Rinehart's address was followed by the director of Roy Hill Holdings, Professor Ian Plimer.
IAN PLIMER: We read in the popular press that we are in a mining boom. We are not. There has been a boom for iron ore and there has been a boom for coking coal but try running a zinc mine where their stockpiles are about 10 times the average stockpile. Yes, the price is about 40 per cent, 50 per cent higher but you're battling exchange rates and if you're operating a zinc mine say in eastern Australia, you pay Pilbara costs for your workforce.
SIMON LAUDER: The global warming denier railed against environmentalists and accused the Federal Government of killing the golden goose.
IAN PLIMER: The industry is under siege. Investors are gun-shy and the volume of green tape and red tape is scandalous.
SIMON LAUDER: Professor Plimer was happy to offer a strong opinion on which side of politics is the miner's best friend.
IAN PLIMER: If the next government is a Labor government, they should go and move to Kiribati or Cocos and Keeling Islands or something and govern us from there and close down Canberra. If the next government is a Liberal/National Party government, they have a number of major tasks. First is to do what we do in our home life is not run up too much debt and to repair the damage.
SIMON LAUDER: With an introduction like that, the shadow treasurer Joe Hockey didn't have to do much to win over the crowd but he sees some things differently to Ian Plimer.
JOE HOCKEY: The mining industry of course is in the midst of a series of booms.
SIMON LAUDER: Mr Hockey's speech went back to well worn touchstones for the Coalition, including a crackdown on unions.
JOE HOCKEY: There has been an increase in union militancy, unquestionably. CFMEU (Construction, Forestry, Mining and Energy Union) and on the wharves the MUA (Maritime Union of Australia), unbelievable militancy in the case of the MUA in Western Australia. I mean outright thuggery and even with the CFMEU, there has been outright thuggery.
SIMON LAUDER: And less tax.
JOE HOCKEY: We'll get rid of the carbon tax and we'll get rid of the mining tax and they've created real burdens on your industry.
SIMON LAUDER: In the foyer, The World Today asked the shadow treasurer what he thought of Gina Rinehart's message.
JOE HOCKEY: I didn't see it, didn't hear it.
SIMON LAUDER: She said governments are using the industry as a cash cow. Do you agree?
JOE HOCKEY: Well, that sounds exactly right.
SIMON LAUDER: And you seem to disagree with Ian Plimer as to whether we're in a mining boom?
JOE HOCKEY: Sorry, I didn't hear Ian's story.
SIMON LAUDER: The Federal Employment Minister Bill Shorten gets his chance to win over the crowd when he debates the Opposition's employment spokesman Eric Abetz this afternoon.
EMILY BOURKE: Simon Lauder with that report.
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