Without a shift, our goose will be cooked

We need a mindset change, and we need this quickly.

We need a mindset change, and we need this quickly.

We are seeing massive rates of business failure at the moment, the highest on record for some time, and our agricultural and mining industries are struggling with ever-increasing government-imposed burdens of tape and tax.

We are in the longest-running per capita recession on record, threatening our living standards.

Those in the bush are struggling, especially with high costs. We’ve warned they are struggling before, but are we listening, are we truly turning our minds to this?

Our primary industries are just that, primary, upon which manufacturing and many businesses employing many Australians are built.

Primary industries are not just the basis of the fresh food we eat, and the minerals essential to civilisation, TVs, iPads, phones, bikes and cars included, but given the many businesses and Aussies they support, form a fundamental rock for our very standard of living.

Yet they are increasingly under attack, and farmers and pastoralists especially are struggling under increasing government burdens and resultant higher costs. And, consequently, having to leave their loved farms.

We need to get out of the mindset that this just needs more announcements of handouts from government. Another $500m here, another $500m there (when our nation is already in record debt!).

Have you ever considered how much of that even leaves Canberra, or the myriad of government agencies beyond, and then actually reaches the farmer? This is an absurdly inefficient distribution process.

What would actually help the farmer, and those in the bush, is the elimination of the direct costs of payroll tax, licence fees and stamp duties, all of which were promised to go decades ago when the GST came in. But governments got too large, too expensive, so these promised cuts never occurred.

Just think of the benefit of additionally cutting the government’s excise tax on fuel. This would affect all transport of goods to and from the bush, items required to make houses, and manufacturing costs too, and the cost relief would spread right around Australia to those in the bush and all those struggling with rising costs.

This leads us to the core of the problem, the size and expense and invasive reach of government. Government tape must stop growing and be significantly cut if we are serious about wanting to cut costs.

Government tape and policies that see investment go elsewhere must be recognised for the danger to our children’s and grandchildren’s futures that they are, and to our living standards.

The engine room of our nation is in the bush. But if we increasingly limit this engine, delaying or stopping it from operating, with increasing government tape and investment-deterring policies, let’s start to think of the consequences.

Far away from the city convenience of Melbourne and Sydney, it is our country areas where the vast majority of our wealth is produced, and consequent tax revenue.

Tax revenue that provides for our nurses, police, hospitals, health care, our increasing numbers of elderly, emergency services and veterans (and much more.) Stopping or delaying the engine providing the tax revenue, which of these important needs should be cut? If you’d prefer none, then we must have a mindset change.

The small towns throughout our nation look as though they might be from a poorer country. The quality of public infrastructure, roads and services in hospitals are usually lacking in country areas. Governments don’t recognise their important contribution; the votes aren’t there.

As I often say, the Pilbara in West Australia should have some of the best hospitals and infrastructure in the world, plus some of the best playgrounds and sports facilities, given the extraordinary levels of tax revenue produced by its mining industry.

Instead, expectant mothers may have to leave their families to travel to Perth to receive the care they need welcoming their little ones into Australia. If you’re a cancer patient, it’s an added nightmare with necessary treatments and hospital facilities so far away. The Pilbara provides a clear example of my point: the votes aren’t there!

Our agricultural industry feeds not only ourselves but also tens of millions of people around the world.

On average, each farmer feeds some 600 people – 150 Australians and 450 of our overseas allies.

And our mining industry has made extraordinary contributions. In the past decade, mining has provided more than $252bn in wages – on average the highest wages in Australia, and very high by international standards – and $357bn in taxes and royalties.

The mining industry also provides new technology, infrastructure in rural regions where they operate, opportunities in those regions, and generous philanthropy.

These vital primary industries are the basis of our living standards. Our governments would have far less money to spend if it wasn’t for these important contributing industries, so their mindsets need to change.

The Bush Summit is a great opportunity to remind Australians, and especially our governments and those in the media of the importance of the contribution of those who work outside of our cities.

And the dire consequences of bad policies and excessive government tape – consequences we are already feeling with the massive business failures, millions of Australians on low incomes suffering, and too many in the bush struggling.

In my opinion, we should treasure not only the economic value of the contributors from the bush, but also their values.

Bush people need to be resilient, hardworking and rely on common sense. Great Australian characteristics – long may they continue.

Many of the great people who proudly represent Australia, such as those who serve in our military and our fantastic Olympic athletes, are disproportionately from country areas.

Australia did not become the prosperous nation it is by accident, or because of government tape or handouts.

It became so because of investment, and the enormous contributions of those who work in our outback.

We need to use every opportunity we can, including the Bush Summit, to speak out about these problems and what needs to be done for a change in mindset. If we continue to saddle our contributors with additional costs and government burdens, we are going to foolishly kill the geese laying the golden eggs.

Gina Rinehart AO is executive chairman of Hancock Prospecting and S. Kidman & Co, and patron and co-patron of National Agriculture & National Mining and Related Industries Days, November 21-22.