THE federal government is heading for a stoush with the states as it moves to exert more control over coal seam gas development as part of a deal with independent MPs to win support for the mining tax.
Prime Minister Julia Gillard won the support of key independents for Labor's minerals resource rent tax yesterday, after agreeing to tougher regulations on coalmining and coal seam gas, as well as making concessions on the tax for small miners, The Australian Financial Review reports.
Under a deal with Tony Windsor and Rob Oakeshott, the states will have to take advice on the impact of exploration and mining on underground water from a new independent expert scientific committee, costing $150 million, before they approve coal seam gas exploration licences.
Labor has set aside $50 million in incentive payments to persuade premiers to agree to the changes. But if they don't, the government will legislate to create a trigger for the commonwealth to assess the impact of exploration or mining on water resources.
Victoria said yesterday it would oppose the changes. "The Coalition government will not be compromising its approvals processes to suit the dysfunctional Gillard government," Victorian Minister for Energy and Resources Michael O'Brien said.
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