The contribution to the federal budget from mining is extraordinary and highlights once more the importance of mining investment to the Australian economy, according to the Minerals Council of Australia (MCA), the Chamber of Minerals and Energy of WA (CMA), and the Queensland Resources Council (QRC).
MCA chief executive Tania Constable said: “In the last 20 years, employment in mining has tripled and wages doubled benefiting hundreds of thousands of Australians, especially in regional areas.
“But the government’s plan to fundamentally realign Australia’s workplace relations system from enterprise bargaining to multi-employer bargaining will undermine efforts by both the government and the Reserve Bank to stabilise the economy.
“Multi-employer bargaining will expose mining to levels of industrial disruption and wage inflation not seen since the 1980s.
“It is clear from the economic outlook presented by the Treasurer in handing down the budget that the government must embark on the productivity reforms needed to secure the nation’s economic future, including attracting a large slice of the $4 trillion of mining investment required to transform the world to net-zero emission by 2050.
“It is increased productivity that will drive business growth and with the right policies Australian mining can undergo another major expansion in investment.
“However, to fully capture the economic potential of this opportunity government policies must support investment in exploration, mining, minerals processing and mining-related manufacturing.
“Measures such as the new programs for funding students at universities and in technical and further education, particularly those in regional Australia, are a good start.
“As are government initiatives on critical materials such as funding the new research and development hub and other development programs.
“Australia needs policy settings that deliver internationally competitive company taxes, practical and beneficial workplace relations rules, an efficient transformation to net-zero emissions that provides reliable and competitively priced energy, and efficient and effective regulation and approvals processes.
“The budget shows the value of the large expansion in mining investment that began in the early 2000s which has provided more than $143 billion in company taxes over the last decade.
“Internationally competitive and stable investment settings are essential to attracting large scale investment in mining that will ultimately benefit all businesses, workers, and households, and other economies around the world.”
CME chief executive Rebecca Tomkinson said the budget again highlighted the significant contribution the WA mining and resources sector made to economies and communities around the country.
Tomkinson said: “CME and its member companies are incredibly proud of the way the WA mining and resources sector positively influences people’s lives across the country.”
“Our sector’s contributions help fund vital Federal Government investment in healthcare, childcare, education and infrastructure, including important projects in WA.
“CME and its member companies also welcome Budget measures aimed at boosting the Australian critical minerals industry and decarbonisation across a variety of industries.
“These measures are very much aligned with the work our sector is already undertaking to grow its ability to extract and refine forward-facing commodities, and to reduce emissions as we work towards net zero targets.”
Tomkinson said it was pleasing to see the Budget address areas of priority for the WA mining and resources sector.
“The commitment to the $15 billion National Reconstruction Fund to transform and strengthen industries is most welcome.
“Up to $1 billion of that being allocated to a Value-Adding In Resources Fund very much aligns with the progress the WA mining and resources sector is already making in expanding its mid and downstream processing capabilities.
“Our industry, along with many others, has spoken openly about ongoing challenges with skills shortages.
“It’s encouraging to see this Budget tackle the situation through training measures such as an additional 465,000 fee-free TAFE places, and also by expanding permanent migration and committing more than $42 million to accelerate visa processing and reduce backlogs.
“We also applaud the $42.5 million allocated over four years to implement the Federal Government’s response to recommendations of the Respect@Work Report, and the $1.7 billion committed over six years to support women’s safety.”
QRC chief executive Ian Macfarlane said continuing international demand for Queensland’s coal, gas, and metals was the major contributor to Australia’s record terms of trade.
Macfarlane said: “For every three months commodity prices remain high, the resources sector is forecast to contribute an additional $43.8 billion in GDP, and $10 billion of tax revenue over the next two years, which is a staggering result that shows just how important mining is to our economic future.
“Resources and energy exports were the biggest contributor to a record 12 per cent increase in Australia’s terms of trade, underpinning our economic strength.
“It is good to see the Federal Government acknowledge the importance, and the contribution, of the resources sector to the nation’s economic security.
“It’s time the Queensland Government did the same by abandoning its ill-considered coal royalty tax increase, which is seriously jeopardising the long-term future of the resources sector and the 420,000-plus people whose jobs we support.
“Already we’ve seen the Japan warn of the impact the decision will have on future investment, and last week BHP reaffirmed that the Queensland Government’s decision to increase coal royalty taxes has led to the company putting new investment in the state on hold.”
The QRC welcomed the Commonwealth’s focus on boosting skilled worker numbers by offering free TAFE places.
Macfarlane added: “Skilled worker shortage is a major issue for the Queensland resources sector and it’s vital the Commonwealth remains focused on the issue to ensure the industry can reach its full productivity and maximise jobs and economic opportunities for all Australians.”
