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by Mac Nichols, engineer and Mannkal Advisory Council member

Regarding this article on the IMF urging Australia to establish a sovereign wealth fund, here are some crucial points to consider:

1. This from a defunct organisation with approaching 200 nation members whose two founding functions of controlling exchange rates and the international allocation of savings after World War II has been lost to the world markets. They are now effectively in the business of herding cats and chasing loosely defined liberal windmills.

2. If the IMF and others are so keen for Australians to own large parts of “all of our” Natural Resources projects, they could give investors a 100% tax break on all income spent on exploration and also a ten year tax break on all income derived from any mining that may ensue. And furthermore, a permanent tax deduction, on all export income derived from such projects.

3. All Australians could then genuinely own shares in productive exploration, mining and farming companies if they were so inclined. And boy would they invest and accumulate capital for other industrious uses including personal retirement.

4. And many Australians would be employed in such operations from every profession, trade and occupation.

The proven recipe for industry is to let capital accumulate in the hands of individuals and companies alike, it is this strength not the strength of the State which is able to persist in the face of turbulent world trade.