A STATEMENT REGARDING AN IRON ORE INQUIRY

I don’t always agree with the Chairman of Fortescue Metals Group, Andrew Forrest, but I do always listen to what he has to say and believe all federal Parliamentarians should be doing the same right now.

In particular the Government should support the move by Senator Nick Xenophon to establish an iron ore industry inquiry. Ideally it would be a joint inquiry, one not limited to the Senate, and I will suggest as much to the Prime Minister. It is unfathomable that the Senate refused to support an inquiry yesterday.

Mr Forrest has been arguing for months that BHP Billiton and Rio Tinto have been abusing their market power by oversupplying the global iron ore market, thereby driving prices down. This is damaging to their commercial competitors to the detriment of jobs and investors, and gouging the tax receipts relied on by governments to deliver services and payments for the broader community.

It is within the Government’s power to pressure all corporations to behave, including by enforcing disincentives and punitive measures relating to anti-competitive behaviour, collusion and abuse of market power. If current legislation and regulatory bodies are inadequate to achieve this then they should be improved and strengthened.
Independent Member for Denison Andrew Wilkie