Presented by
Mr Craig Andrews
former Senior Mining Specialist, World Bank

Abstract
Since about 2002, there have been a number of initiatives aimed at better reporting on revenues streams, specifically the payments and taxes paid by the companies and received by the governments. Some of these have been spearheaded by the NGO community such as Publish What You Pay, Global Witness, and Revenues Watch. Many multi-national resource companies have also unilaterally improved their reporting on taxes and payments. Since it was launched in 2002 by Tony Blair, the Extractive Industries Transparency Initiative (EITI) has established the international franchise on reporting of taxes paid by companies and received by governments. Finally, the passage of the Dodd-Frank Act in the USA in 2010 moves the voluntary nature of EITI reporting to a statutory requirement for companies listed with the Securities and Exchange Commission. Other governments or listing exchanges have similar legislation or requirements under consideration the European Union, Canada and Australia.

While the objective of greater transparency of the extractive industries is a noble one, I argue that this is easier said than done. Significant gaps still need to be addressed, including but not limited to implementing the EITI in developed and not just developing countries, covering of the complete set of benefits streams (and costs) of the extractive industries in addition to only financial revenues streams, assessment of the “fairness” of various development contracts and dealing with serious definitional issues. Moreover, the debate on the issues tends to be dominated by NGOs and some (developed country) governments and international organizations. Some governments in countries with significant extractive industries (Chile, Mexico, China, Russia, Brazil, Saudi Arabia) are silent or vaguely hostile. While some of the main publically listed extractive industry companies have been involved the EITI and other transparency initiatives the response is more muted among other significant actors (such as, Rusal, Aramco, Norilsk, Codelco Chile, Tata, Mittal). Private sector companies have sometimes voiced the frustration that there is a serious dis-connect between what is theoretically desirable and what is achievable at a cost reasonably commensurate with benefits of enhanced reporting.
 

When

22 November 2011
12:00pm - 1:00pm

Where

Living Lab, Building 3 (Institute of Sustainable Development & Architecture)
Bond University

Contact Information

Doreen Taylor
Research Program Advisor
Faculty of Business
Telephone: +61 7 5595 0213