PM prepares for offshore processing, mining tax battles

Julia Gillard is setting up a new clash on asylum seekers in Parliament, with her government also set to intensify battle on the mining tax.

As part of the strategy, Labor MPs will be asked to endorse yet another approach on offshore processing, in a desperate bid to install a policy to halt boat arrivals.

However, the compromise proposed by independent Rob Oakeshott would be rejected in the Senate by the Greens, who are opposed to any offshore processing.

As well, Immigration Minister Chris Bowen could face questions in Parliament over his support for the failed leadership challenge of Kevin Rudd, who had spoken out against the proposal to send boat people to Malaysia.

On Wednesday the Senate economics committee will deliver a report from its brief inquiry into the mining tax legislation. However, the Greens are now threatening to delay the bill in a last ditch attempt to force changes.

Mr Bowen said yesterday he supported the Prime Minister and was proud of the Malaysia plan.

”I proposed it, I believe in it,” he told Channel Ten.

The legislation was withdrawn from Parliament late last year when it became clear it would fail.

”I’ll be recommending to the Labor caucus we support Mr Oakeshott’s bill,” Mr Bowen said.

”The Australian people want this sorted out. They say both sides of politics support offshore processing and surely both sides of politics should be able to vote for it.”

The opposition is refusing to support sending boat people to Malaysia because the government will not agree to temporary protection visas nor turning boats around.

The Oakeshott bill attempts to overcome the impasse by allowing an immigration minister to designate any nation as a suitable offshore assessment country as long as it is party to the Bali Process, a grouping of more than 50 countries aimed at combating people smuggling.

The opposition will not support the Oakeshott bill because it is ”a carbon copy” of the government’s legislation.

The fate of the bill will be decided in the lower house by Mr Oakeshott’s crossbench colleagues.

The government is engaging in a hard-sell at the community on the mining tax, although its passage through Parliament is assured.

The bill to redistribute part of the super profits of three companies passed the House of Representatives last year.

Greens leader Bob Brown says his party will support the Minerals Resource Rent Tax Bill in the Senate despite being unhappy with its scope.

However, he said the government had itself to blame if his party delays the passage of the mining tax bill. He said the government had not revealed legislation for a promised tax cut for small business, from 30 per cent to 29 per cent, due to start in July.

Treasurer Wayne Swan continued to sell the merits of the bill, under the banner a fair go.

”Around 2.7 million small businesses stand to benefit from the passage of the $6500 instant asset write-off that will help make their businesses grow, around 8.4 million workers will enjoy a more secure retirement with the increase in superannuation guarantee, and communities across the country will gain new and better infrastructure,” he said.

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