Resources Minister Martin Ferguson says Coal Seam Gas Industry Must Engage with Locals

Wayne Swan, Martin Ferguson and Bill Shorten hold a press conference on the introduction of Labor's mining tax. Picture: Ray Strange Source: The Australian

THE coal seam gas industry has grown too quickly and now needs to slow down and engage with local communities, says federal Resources Minister Martin Ferguson.   

In a strong signal the government will accede to demands from independent MP Tony Windsor for a tougher approach to coal seam gas mining and up to $400 million for environmental assessments of areas slated for gas exploration, Mr Ferguson said the government's approach to gas extraction would be guided by the science.

Labor needs Mr Windsor's support for its mining tax legislation, but the independent has held out a tougher stance on coal seam gas exploration as the price for his support on the mining tax, which was introduced into parliament today.

In a blunt message to the coal seam gas sector, Mr Ferguson said: “The industry has grown too quickly.

“When I became the minister in December 2007 this was a pipe dream. No one saw $45 billion in this new industry.

“They (mining companies) have concentrated on the investment decisions; they've now got to concentrate a little more on community engagement,” he said.

“The mining industry have done it for years. Simple things about how you treat farmer and communities - some of them are doing it well, some aren't.

“In working our way through this there is only one approach, it's got be based on the science.”

Mr Ferguson said he was working to harmonise state regulations on coal seam gas exploration, while Treasurer Wayne Swan was leading negotiations with the cross bench on the mining tax.

Earlier today there were signs Mr Windsor would support the mining tax.

He said he believed the government was seriously considering his demands on coal seam gas.

“I am encouraged that the government is engaged in trying to come to some sort of resolution,” Mr Windsor told ABC Radio.

“The inference that I am getting is that they are willing to have a serious look at this.”

In a fresh demand, Mr Windsor also called for a voluntary halt to coal seam gas development in sensitive areas such as the Darling Downs in Queensland and Liverpool Plains in NSW until environmental issues associated with gas extraction had been settled.

Labor needs the support of four crossbenchers to pass its minerals resource rent tax. Greens MP Adam Bandt will support the bill while Mr Windsor, and fellow independents Rob Oakeshott, Andrew Wilkie and Bob Katter, are undecided.

Finance Minister Penny Wong says the government will continue talking with Mr Windsor and other crossbench MPs.

“It's very important that the parliament looks to the national interest,” she said.

The 30 per cent minerals resource rent tax will apply to the extraordinary profits of coal and iron ore miners from July 1, 2012.

Revenue from the tax will fund a billion-dollar tax break for small business, a cut to the corporate tax rate, an increase in compulsory superannuation contributions and improve regional infrastructure.

The Australian