Media Releases
Election Policies Must Deliver Certainty to Resource Sector
12/08/10
As the federal election approaches, WA’s mining and petroleum sector has urged the major political parties to support policies that secure the long-term international competitiveness of the industry.
The Chamber of Minerals and Energy of Western Australia (CME) has called on the next government to provide certainty for the industry - by promoting a stable, competitive investment environment, along with helping meet labour and infrastructure demands.
CME Chief Executive Reg Howard-Smith said the Australian sector’s sovereign risk profile had taken a battering during the recent debate over the now discredited Resource Super Profits Tax.
“Our member companies are seeking certainty, so they can proceed with the next generation of resource projects, worth billions to the national economy,” Mr Howard-Smith said.
“A strong resource sector means sustained economic growth and jobs and opportunities for all Australians – something our political leaders need to recognise.”
Priority areas for the industry include, but are not limited to:
Minerals Resource Rent Tax
At the very least, CME is seeking:
- Effective exclusion of magnetite iron ore from the proposed MRRT, on the basis that magnetite ore, in its raw state, is a low-value product – and requires significant processing, before it becomes commercially viable;
- Consideration of the impact of the new tax on the competitiveness of junior explorers and WA’s emerging magnetite and hematite projects, along with the impact of the expanded Petroleum Resource Rent Tax on existing gas projects;
- An increase in the threshold, at which the tax is applied; and
- A firm assurance the tax rate will not increase beyond what is proposed, nor include other commodities in the future.
Labour supply
- Strengthening skilled migration programs;
- Targeted investment in skills and training opportunities for school leavers and the unemployed; and
- Investment and programs aimed at increasing employment participation rates for Indigenous communities and women.
Infrastructure and services
- Investment in essential infrastructure, including transport corridors, water and energy supplies – particularly in regional areas;
- Investment in services, including health and education and training – particularly in regional areas; and
- Development of future water sources, to help sustain the next period of sustained economic growth.
Approvals
- Removing the duplication of processes and reducing the amount of regulation by multiple authorities and regulatory agencies. This includes the re-drafting of the Environmental Protection and Biodiversity Conservation Act 1999 to simplify, streamline and reduce the duplication of processes under the Act; and
- Inclusion of social and economic assessments, in conjunction with consideration of environmental and cultural values, in federal land use planning processes, such as the current National Heritage assessment for the Kimberley region.
Climate change
- Ensuring domestic action to reduce greenhouse gas emissions is calibrated with global efforts and does not compromise the international competitiveness of Australia’s trade exposed industries.
- Promoting joint government and industry efforts to adopt new low carbon technologies.
Mr Howard-Smith said the industry had emerged from the global economic downturn, and was set to drive the national economy in the decades to come.
“We need political leadership that recognises these opportunities will only be maximised, with policies aimed at enhancing our international competitiveness, ensuring a steady supply of labour and an ongoing commitment to nation-building infrastructure.”