The Queensland Resources Council (QRC) has urged the state government to implement policies that will maintain the competitiveness of the resources sector, following the release of the mid-year budget update.
QRC Chief Executive Officer Janette Hewson highlighted the importance of regaining Queensland’s competitive edge to overcome current economic challenges.
“With prices now falling, the best way to increase revenue from the resources sector that will benefit all Queenslanders is to bring more new projects online and encourage sustained investment in existing resources projects,” Hewson stated.
She highlighted that Queensland’s high coal royalty tax rate remains a significant deterrent to investment.
The resources sector’s contribution to Queensland’s economy remains substantial.
In the 2023-24 financial year, it generated a record $120.2 billion, representing around 24 per cent of the state’s economy.
The sector also supported over 554,000 direct and indirect jobs, equivalent to one in every six jobs in Queensland.
However, Hewson pointed out that the coal sector is subject to regular commodity cycles, and prices are returning to more normal levels.
This cyclical nature underscores the need for a fair and balanced royalty system and streamlined approvals to attract more projects and investment to Queensland.
The QRC welcomed the new state government’s establishment of a Productivity Commission and a Resources Cabinet Committee, viewing these as industry enablers that promote the sector’s importance to Queensland.
However, concerns were raised about the decline in mining and exploration investment over the past year, as reported in the Office of the Chief Economist’s latest Resources Energy Quarterly.
Hewson highlighted the need for strategic planning and sensible decision-making to address emerging challenges, including global market shifts, the transition to a low-carbon economy, and a lack of new investment in the pipeline.
Despite these challenges, public support for the resources sector remains strong, with 69 per cent of Queenslanders acknowledging its importance to the state.
As Queensland faces economic headwinds, the QRC’s call for competitive policies highlights the ongoing importance of the resources sector in driving the state’s economic prosperity and job creation, particularly in regional areas.
