Jun 28, 2016 - election campaign, we are yet to hear any ... automation, robotics, fibre-optic sensors and ... AMMA's on
West Australian, Perth 28 Jun 2016, by Steve Knott General News, page 19 - 671.00 cm² Capital City Daily - circulation 153,763 (MTWTF--) Licensed by Copyright Agency. You may only copy or communicate this work with a licence.
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BRIEF AMMA
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Mining still doing heavy lifting Steve Knott
W
ith only days remaining in Australia’s longest running Federal election campaign, we are yet to hear any substantial discussion on how our major political parties plan to ensure the longevity of an industry that has kept — and continues to keep — our economy above water. Instead, we have witnessed a disappointing unity ticket in talking down the resources industry and its vast potential benefits for our future. As we hear an almost-daily mantra that Australian’s economy is transitioning away from mining, it is worth considering a few inconvenient truths about the diversity of the resources industry and its continued contribution to our national prosperity. First, despite the rhetoric, mining continues to do a great deal of heavy lifting for our economy thanks to the rewards we are now reaping from decades of investment. In 2014-15, mining made the highest contribution of any sector to overall GDP at $118.3 billion, while Australia’s total resources exports are about $172 billion and are forecast to grow to $232 billion by 2020-21. According to the Government’s latest corporate tax transparency report, miners contribute more tax to the Australian community than any other industry — just over $12 billion in 2013-14. This revenue is building the schools, hospitals and infrastructure that keep our
communities thriving. Another inconvenient truth for those seeking to talk down mining is that the resources industry continues to be a major driver of jobs. In 2013, the Reserve Bank estimated the resources industry created and supported more than a million jobs in Australia. While that figure has no doubt contracted in recent years due to a shift from labour-intensive construction to long-term production, using the established modelling that one job in mining creates three jobs in the supporting supply chain, our resources industry is still responsible for more than 600,000 well-paid jobs in Australia. Just as important are the types of roles now being created by the resources industry. Australia’s mining equipment, technology and services sector has grown into a $90 billion industry and is seen as the world’s leading innovator and exporter of mining technology. This has driven a new breed of miner, where traditional manual labour is making way for highly skilled roles across remote operating centres, automation, robotics, fibre-optic sensors and other innovative, high-tech developments. With the pre-election economic and fiscal outlook confirming the pick-up in non-mining investment is slow, it’s time our political leaders started to talk up Australia’s potential to be a global powerhouse for generating the resources and energy the world needs in the 21st century. We need less rhetoric about
the transition away from mining and more discussion on how to stimulate investment in our competitive natural resources that are driving ongoing economic prosperity and creating new, exciting careers for future generations. This is even more important after Britain’s decision to leave the European Union and the uncertainty it is creating for global commodity markets and international investment decisions. Against this background, the foundations for Australia’s continued economic success literally surround us and now more than ever we need to support mining and resources as a foundation for our economic growth. Australia has more than $254 billion worth of potential major resources and energy developments yet to get off the ground and we need to realise these opportunities. In commodities, we rank first in the world for uranium reserves, fifth for thermal coal, sixth for shale oil and seventh for shale gas reserves. For emerging energy markets, our sun, wind and vast landscape offer unique opportunities to become a world powerhouse in renewables technology. Bringing these opportunities to fruition will depend on our national leaders delivering the right policy foundations. This must be led by a competitive corporate tax rate, streamlined approvals processes and another area where we have heard little during this Federal election campaign — workplace relations reform. A recent survey of more than
West Australian, Perth 28 Jun 2016, by Steve Knott General News, page 19 - 671.00 cm² Capital City Daily - circulation 153,763 (MTWTF--) Licensed by Copyright Agency. You may only copy or communicate this work with a licence.
100 resources companies employing more than 85,000 people revealed that 76 per cent believe our workplace laws make it difficult for them to respond to changing market conditions, while just 6.3 per cent consider the system supports investment confidence. AMMA’s ongoing campaign for “five workplace relations reforms over five years” calls on the next Australian government to address major problems in our employment laws that are creating barriers to investment and employment in the resources industry — and throughout our economy. Increased investment in renewables and non-renewables could generate thousands of jobs and billions of dollars in taxation revenue for our nation. As polling day approaches, we hope to see policies from our next government that support industries of critical national economic significance such as resources that can form the bedrock of the next evolution in Australia’s economic and social development. .................................................................................
ᔡ Steve Knott is chief executive of the resources industry employer group, AMMA.
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Illustration: Toby Wilkinson
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