PERTH (miningweekly.com) – The latest jump in Western Australia’s unemployment rate has solidified the argument against the proposed changes to the iron-ore levy, the Western Australian Chamber of Minerals and Energy (CME) has said.

Quoting figures from the Australian Bureau of Statistics, CME CEO Reg Howard-Smith on Thursday said that Western Australia had the highest rate of unemployment across Australia.

“The latest jump in Western Australian unemployment solidifies the fact the state cannot afford the 3 400 job losses which will result from the Western Australian Nationals’ destructive new mining tax proposal,” Howard-Smith said.

He said the unemployment figures highlighted the job losses from the mining tax plan, as demonstrated by economic experts, Deloitte Access Economics, could not come at a worse time.

“On the same day it is revealed Western Australia has the highest unemployment rate in the country, the Western Australian Nationals are out proposing a devastating mining tax which will cost 3 400 jobs in Western Australia – almost 3 000 of those in the Pilbara alone,” Howard-Smith said.

“This tax is highly irresponsible and should be roundly condemned. The proposal could well cement Western Australia’s place at the top of the unemployment heap into the near future.

“At a time when Western Australia is suffering the last thing we need is a scheme which will damage our state’s reputation as a place to do business, harm investment into Western Australia and cost families and businesses their livelihoods.

“The last thing people working in our mining sector want is to have uncertainty about their jobs hanging over their heads over the Christmas period due to a ridiculous, reckless tax proposal by the Western Australian Nationals.”

Western Australian Nationals leader Brendon Grylls has proposed the tax, which will impose a A$5/t levy on iron-ore production from the Pilbara, with the aim of raising A$7.2-billion in state funds. Currently, iron-ore miners pay 25c/t.

Mining majors Rio Tinto and BHP Billiton, which rejected the proposed tax, have also warned that it will place jobs and competitiveness at risk.