MRRT

[MrCommerce]

Hi guys,

I know i shouldn't worry, but was just wondering with the "two-speed economy" question, if the MRRT is a valid policy? I was advised by my teacher not to use it considering it didn't generate much revenue at all, but i couldn't think of anything else at the time :S

Thanks!

[janson34]

didnt the little quote at the start have something to do with mining?
except i totally forgot all the info towards it to get enough marks so i did the infrastructure policy instead ....     

[adios]

Mate, I did exactly the same thing!
Couldn't think of anything either, so I spoke about how in theory the revenue collected from the MRRT should been invested in underperforming areas of the economy.

How'd you go with the rest of the exam?

[MrCommerce]

Mate, I did exactly the same thing!
Couldn't think of anything either, so I spoke about how in theory the revenue collected from the MRRT should been invested in underperforming areas of the economy.

How'd you go with the rest of the exam?

Mmm yeah i did similarly, i said the revenue collected was redistributed to industries such as manufacturing and car industries.

I think i did okay haha ~ finished with a minute left 

[sulla5460]

I was going to talk about the MRRT, but the issue is that it was a policy implemented based on advice from the IMF that Australia should implement a tax on mining which would go towards a sovereign fund, and therefore would now necessarily go towards under performing areas of the economy. I spoke about about infrastructure spending where cities such as Sydney and Melbourne were the main benefactors, and that rather than taxing the mining industry more, the government was reallocating its resources towards investment in areas of the economy with low growth.

[janson34]

Sulla,
i did that too  i dont think many people would have done that since it basically stated mining in the little quote

i talked about how the infrastructure policy designed to redevelop  roads such as the ring road, link from melb to sydney and m4 high way would relieve congestion for sectors participating in long travel distances, allowing for greater efficiency and production>lowers their costs>more competitive?

Not sure :/

[gillig]

Sulla,
i did that too  i dont think many people would have done that since it basically stated mining in the little quote

i talked about how the infrastructure policy designed to redevelop  roads such as the ring road, link from melb to sydney and m4 high way would relieve congestion for sectors participating in long travel distances, allowing for greater efficiency and production>lowers their costs>more competitive?

Not sure :/

i also did infrastructure but talked about how the decrease in transport costs (investment in ports) for mining industry which has enormous transport costs therefore decreasing costs of production and accentuating the two speed economy

[janson34]

i didnt talk about mining as i think it said that the mining didnt reflect other sectors of weaker areas, so i said it will help productivity of other sectors such as service sectors and freight

[nomorecookies]

i also did infrastructure but talked about how the decrease in transport costs (investment in ports) for mining industry which has enormous transport costs therefore decreasing costs of production and accentuating the two speed economy

i did infrastructure as well and also talked about those points! I was going to do MRRT first but i saw the 'implemented since 2011' and i had this mindset that it meant it had to be a something that has been done every year since 2011 and the MRRT was implemented in 2012 so i just freaked out put infrastructure    was in such a rush though, pretty tough

[Towlie]

Yes, any kind of mining tax would have been the ideal answer, as long as you stated that it would slow the mining states, towards the growth of the states that are disconnected from the mining. From what I can remember about the question, if you had also have stated that the tax 'could' be used to help subsidize growth in the weaker states the examiner will be almost forced to give you full marks.
Saying that it was very possible to argue other policies, such as monetary policy or infrastructure spending but you would have to relate the policy to its immediate effects on struggling industries such as manufacturing and textiles.

[jacky374]

i talked about how the infrastructure policy designed to redevelop  roads such as the ring road, allowing for greater efficiency and production>lowers their costs>more competitive?  link from melb to sydney and m4 high way would relieve congestion for sectors participating in long travel distances,