Economics & Productivity
The economics and productivity stream of the Industry Competitiveness portfolio is focused on ensuring a globally competitive and stable environment that recognises the resources sector as a strategic driver of economic development, growth and diversification.
State pre-Budget submission
CME’s most recent pre-Budget submission recommends:
- The fiscal strategy must avoid deficit reduction at the expense of a globally competitive resources sector in WA, ensuring the State’s hard-earned position as an attractive investment destination is not at risk. The WA Government must provide investment certainty by ensuring no new or increased taxes, royalties, levies or other charges.
- CME supports the continued allocation of priority resources on whole-of-government regulatory reforms under the Department of Treasury to make it easier to do business in WA. A continued focus on ‘step-change’ reforms to improve efficiency, alongside improvements to the quality and effectiveness of regulation, will support WA in retaining its hard-earned position as an attractive and stable investment destination.
- Ensuring competitive settings facilitates diversification into the production of mineral concentrates, chemicals and other downstream products. More modern and globally competitive royalty rate settings on these products would support the Government’s commitment to sustainable job creation, Australia’s Critical Minerals Strategy and the Future Battery Industry Strategy, amongst other future growth opportunities. The potential revenue foregone by lowering the royalty rate on these commodities needs to be assessed against the benefits of investment in a new and diversified downstream industry, i.e. job creation and value added to the economy.
Economics & Productivity Committee
The Committee considers a broad range of issues primarily focused on reducing the cost of doing business, promoting investment and ensuring economic competitiveness of the resources sector.
The Committee has oversight of the delivery of the following CME policy and advocacy objectives:
- Increasing awareness across governments, politicians and the community of the direct and indirect economic contributions made by the resources sector to the nation, State, regions, and local communities in which it operates, through publishing our annual Economic Contribution Factsheets.
- Positively influence budgetary processes and fiscal outcomes through pre-Budget submissions to the State and Federal Government.
- Government strategies for local jobs and businesses recognise the industry’s significant existing local content commitments and an ongoing need for labour mobility.
- Government investment in establishing new industries reflects robust feasibility assessments, business case development and consultation to maximise benefits and ensure longer-term sustainability.
- Sustained momentum on the deregulation and reform agenda across all levels of government, focusing on identifying and reducing unnecessary red tape and regulation.
The following interest and working groups convene as needed to support the work of the Committee:
- Battery and Critical Minerals
- Local Government
- Infrastructure Reference Group
The Committee and its supporting groups guide CME’s participation in several external bodies:
- Minerals Council of Australia’s (MCA) Economic Reform Committee
- Future Battery Industries Ministerial Taskforce
- Future Batteries and Critical Minerals Industry Working Groups (JTSI)
- Iron Ore Rail Car Wagons Action Group (JTSI)
- Reserve Bank of Australia Industry Liaison
- Australian Bureau of Statistics Quarterly State Final Demand Conference