Antinuclear

South Australian government not affected if BHP’s Olympic Dam expansion doesn’t go ahead

“Olympic Dam doesn’t have any significant revenue for the state government,”   “Olympic Dam is never going to be some sort of cash cow for the state government

Olympic Dam no cash cow for state, says Jack Snelling THE AUSTRALIAN, BY: SARAH MARTIN July 25, 2012 BHP Billiton’s $30 billion Olympic Dam mine expansion will have no revenue implications for the South Australian government, Treasurer Jack Snelling says.

In comments far removed from earlier claims that the mega-project would transform the state, Mr Snelling said the budget would not be affected if the project did not go ahead.

“Olympic Dam doesn’t have any significant revenue for the state government,” he told The Australian. “Olympic Dam is never going to be some sort of cash cow for the state government because most of our revenue base is connected to transactions, not economic growth.

“It might have a very minor impact, but the only extra revenue we
anticipate . . . is a small increase in payroll tax.”

BHP’s board is expected to make a decision on the project later this
year before a legislated indenture for the project lapses. Mr
Snelling’s comments came as the opposition yesterday pressed the
government for a “plan B” in the event the mine expansion was shelved.

“Given that the entire South Australian budget is predicated on the
Olympic Dam expansion going ahead, the state’s growth and revenue
projections are critically tied to it,” Liberal mining spokesman Mitch
Williams said. “There is a strong chance now that the expansion won’t
go ahead next year as BHP Billiton puts the brakes on its global
investments, especially long-term ones like Olympic Dam…….
http://www.theaustralian.com.au/national-affairs/state-politics/olympic-dam-no-cash-cow-for-state-says-jack-snelling/story-e6frgczx-1226434241745

July 25, 2012 - Posted by Christina Macpherson | politics, South Australia, uranium