Those profits wouldn't even exist is there wasn't the possibility of an adequate return

Watching Q&A tonight I was struck by the fervour for the argument being somewhat disingenuously put out by the Rudd Govt that the Mining Super profits tax will ensure all Australians get a fair return for non-replaceable assets.

There is little recognition in the debate about mining companies and so-called super profits that those profits wouldn't even exist is there wasn't the possibility of an adequate return to compensate for the huge risks involved in exploration and production let alone participating in world markets. Sure the profits are large at present in raw terms but has anyone suggested looking at profits in terms of returns on the investment involved? I'd love to see some of our politicians argue over appropriates levels of ROI instead of rates of taxation or returns over the long term bond rate.

And another thing, perhaps a touch esoteric for some, but whilst there are those prepared to talk about rebating for royalties there seems to be little understanding of the factual realities of our federation. The six sovereign states that joined together to voluntarily form the Commonwealth of Australia never ceded their ownership of natural resources to the Federal Government. Our resources do not "belong" to the people of Australia as represented by the Federal Government, they belong to the people of our respective States and that's why State Government can, do and will continue to exact royalties.

Someone might kindly inform me if I'm wrong but I'd also suggest the PRRT argument is also a furphy as it pertains to profits on oil and gas from Federal waters not on State land.

Whatever the arguments for and against Mr Rudd's "great big new tax" (and there you have a clear statement of my position; some would call it bias but being biased does not necessarily mean one is wrong) on economic and even social grounds it must, in my view, be seen off as it is a direct attack on the sovereignty of our States. Many would say "who cares" but like with all freedoms hard won, they can easily lost but so very hard to regain. Let's not lose our freedoms in part from an ignorance of our history and country's foundation.

Best wishes, Jonathan.