The Chamber of Minerals and Energy of Western Australia (CME) welcomes confirmation in today’s 2015-16 State Budget, that royalty rates will not be increased for any commodities as a result of the Mineral Royalty Rate Analysis across the forward estimates.
“CME is pleased the State Government has followed through on the commitment made by Minister Marmion to provide royalty rate certainty for the Western Australian resources sector,” said CME Chief Executive Reg Howard-Smith.
The valuable contribution to the State’s economy of the resources sector has again been highlighted in the State Budget, with royalty income forecast to be $3.67billion next financial year.
“Royalty income will account for about 14 per cent of the State’s total income, this is up from only 5 per cent in 2004/05, in pre-expansion times,” said Mr Howard-Smith.
CME welcomes the Government’s planned asset sales as a mechanism to reduce growing debt level and see this as a useful measure in halting further downgrades by ratings agencies.
“Getting debt under control and showing greater levels of expenditure restraint are necessary for Western Australia to have any chance of restoring its AAA credit rating. These ratings send an important signal to foreign investors in the global marketplace and impact the Western Australia’s resources sector ability to attract and retain vital capital,” said Mr Howard-Smith.
“The resources sector operates in a globally competitive environment and it is crucial we have the right policy settings to attract future investment,” said Mr Howard-Smith.