The power of hope: the mobilisation of small and mid-tier companies in the mining industry's campaign against the Resources Super Profits Tax

Date

2016

Authors

Gilding, Michael
Merlot, Elizabeth
Leitch, Shirley

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Publisher

Routledge, Taylor & Francis Group

Abstract

This article examines the mobilisation of small and mid-tier companies in the mining industry's campaign against the Resources Super Profits Tax (RSPT), drawing on interviews with 18 industry players. The government anticipated that small exploration and development companies would support the RSPT, on account of its promise to contribute towards the costs of exploration and development. In doing so, it was guided by Treasury advice and the assumption of calculative rationality on the part of small companies. Instead, industry leaders forged a common front against the tax within days of its announcement. In doing so, they appealed to the hope of extraordinary returns – or what is sometimes described as ‘sentiment’, ‘animal spirits’ and ‘irrational exuberance’ – among mining entrepreneurs and investors, against the odds. Other researchers have argued that the debate around the RSPT highlights the ‘power of ideas’, but we argue that it highlights the ‘power of hope’.

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Source

Australian Journal of Political Science

Type

Journal article

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Restricted until

2037-12-31