Labor throws away more SA taxpayers’ money

Posted on November 11, 2011

Premier Weatherill will make taxpayers compensate yet another private company for Labor’s mistakes with Marathon Mining confirming it will sue the Government over its plan to ban mining at Arkaroola.

The Marathon Board has confirmed it will pursue legal action because after nearly four months Labor has failed to follow through on its promise to compensate the company.

Marathon is understood to have invested $15.8 million on exploration at Arkaroola before the total mining ban was imposed.

Labor has a history of using taxpayers’ money to compensate private enterprise for its mistakes - wasting $6 million compensating the Newport Quays Consortium for the cancelled Port Adelaide waterfront development and $10 million scrapping the prisons PPP in 2009.

Opposition Leader Isobel Redmond said Labor had treated Marathon disrespectfully by first granting an exploration licence then banning mining, and then promising compensation but failing to provide it.

“South Australians are being forced to pay for Labor’s stuff-ups by forking out millions of dollars for protracted legal battles and compensation,” Ms Redmond said.

“Labor’s failure to be clear and upfront with Marathon will discourage other mining investment in this state.

“Labor is sending a confusing message to the mining industry and investors will be cautious when considering doing business in South Australia under Labor.

“The Liberal Opposition supports the protection of Arkaroola but we are appalled by the confusion Labor has created as they continue to mishandle this issue.

“This is same old Labor – wasted money and broken promises, destroying the confidence of private investors and the business community and wasting the money of the broader community.”