Weatherill’s Expensive Marathon Mess

Posted on February 13, 2012

Premier Weatherill is throwing away another $5 million of taxpayers’ money to compensate yet another private company for Labor’s mistakes having agreed to pay Marathon Resources following the Government’s permanent mining ban at Arkaroola.

Opposition Leader Isobel Redmond said Labor had treated Marathon appallingly by initially granting a new exploration licence then banning mining.

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

Labor has a bad habit of using taxpayers’ money to compensate private enterprise for its mistakes, thus far totalling at least $21 million:

• Wasting $5 million to compensate Marathon Resources for banning mining.
• Wasting $6 million compensating the Newport Quays Consortium for the cancelled Port Adelaide waterfront development.
• Wasting $10 million scrapping the prisons PPP in 2009.

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

“Labor’s indecision and failure to clarify its position with Marathon earlier will discourage other mining investment in this state.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 the same old Labor – wasting taxpayers’ money and breaking promises, destroying the confidence of private investors and the business community,” Ms Redmond said.