Australian PM will narrowly win, says poll

AUSTRALIAN Prime Minister Julia Gillard’s Labour government will narrowly win Saturday’s election, a Reuters Poll Trend showed yesterday, paving the way for a controversial mining tax and a possible carbon trading scheme.

Australia’s small Greens party, on course to gain the balance of power in the Senate upper house, said it would seek to toughen the mining tax if Labour wins.

The proposed 30% tax on iron ore and coal, forecast to raise A$10.5 billion (€7.3bn) over two years starting 2012, has been signed off by mining giants BHP Billiton, Rio Tinto and Xstrata, but is opposed by much of the rest of Australia’s key mining sector.