Senate committee recommends eliminating MRRT: Midday Roundup

A Coalition-led Senate committee has recommended the government dump its mining resource rent tax and instead develop a plan to tax the mining industry in accordance with recommendations contained in the Henry Review.

The committee found the MRRT was “deeply flawed and poorly designed”, and that the tax, in conjunction with the petroleum resource rent tax (PRRT), should not be supported.

“The Government’s response to the Henry tax review has exposed the federal budget to a higher degree of risk,” it said, according to AAP.

There were nine recommendations in the report, including that MRRT revenue be used to pay debt. However, other senators on the committee argued that investments from the MRRT would include benefits for several years.

“The Government’s proposed new national mining tax arrangements are more complex, less efficient and less fair than the status quo,” the report states.

“The process for the development of the MRRT and expanded PRRT was inappropriately secretive and exclusive.”

Committee chairman Mathias Cormann says the tax is a “fiscal train wreck”.

Telstra’s John Stanhope steps down

Telco giant Telstra has announced chief financial officer John Stanhope will retire in December.

“John Stanhope has been a driving force in landmark events including privatisation and the conclusion last week of definitive agreements with the NBN Co and Federal Government,” chief executive David Thodey said in a statement.

“We look forward to him continuing to play a critical role as we seek shareholder approval for Telstra’s participation in the National Broadband Network.”

Climate talks to continue

Independent MP Rob Oakeshott says talks over the proposed carbon tax could continue “for a lot longer” before an agreement is made.

Oakeshott told Sky News this morning the committee overseeing the package is close to reaching a deal, but said “there are some really important sticking points”.

“We could have a deal in five minutes if we could get agreement on those and it might take a lot longer if we can’t,” he said.

“But everyone in good faith is trying to get there and I’m hopeful that we can.”

Oakeshott said there was some fear there had been a “void of information”.

Christine Lagarde named IMF chief

French finance minister Christine Lagarde has been named the new head of the International Monetary Fund after former head Dominique Strauss-Kahn was forced to resign after sexual assault allegations.

Lagarde will begin her five-year term next month, and will be responsible for navigating through the Greek sovereign debt crisis.

“If I have one message tonight about Greece, it is to call on the Greek political opposition to support the party that is currently in power in a spirit of national unity,” she told French television reporters last night.

Lagarde is the first female head of the IMF.

Shares rise after strong Wall Street lead

The Australian sharemarket has opened more than 1% higher this morning after a strong lead from Wall Street, where stocks rose over new hopes Greece will be able to navigate its debt crisis.

The benchmark S&P/ASX200 index was up 55 points or 1.24% to 4529.8 at 12.10 AEST, while the Australian dollar rose to $US1.05c.

AMP shares lost 0.42% to $4.73, while Commonwealth Bank shares lost 0.81% to $51.21. Westpac rose 0.46% to $21.76, while ANZ gained 0.51% to $21.51.

In the United States, the Dow Jones Industrial Average gained 145.13 points or 1.21% to 12,188.69.