In late May, Perth hosted a “Careers in Mining and Resources forum” which was reported in a special feature for “The Western Australian”. One only has to flick though the pages to see its magnitude and the impact it is having on the State and to our export earnings. The Chamber of Mining and Energy of Western Australia (CME) is quoted as saying “Currently the sector has total export income of more than $100 billion and produces a royalty for the WA Government of $4.9 billion”. In 2010/11 the WA resources sector accounted for 95 per cent of the state and 46 per cent of Australia’s merchandise export income and direct employment of over 100,000 people in mining, oil and gas. A Department of Mining and Petroleum report claims there are over $180 billion worth of projects committed or under consideration which will create more than 57,000 construction jobs and 18,000 permanent jobs. When you look at the sheer scope of what’s happening and the impact it is having, you have to wonder why the unions are trying to create havoc for Hancock Prospecting for planning to engage 1700 guest workers when their Roy Hill project is reported to employ 6000 Australians.
The feature also puts a personal touch to this massive industry and tells the story of Christopher Turland, a dump truck driver with Fortescue Metals Group who wanted to become a train driver. Christopher decided to take advantage of the opportunity and after completing a fifteen month traineeship become Fortescue’s first qualified Indigenous train driver. He is not alone, in May 2012, Aboriginal people comprised 10 per cent of Fortescue’s workforce and the company has awarded $580 million in contracts to Aboriginal businesses across its operations and growth projects. Nobody could argue that this anything but a fabulous outcome and I am sure there are more.
Opportunities of course can be realised and opportunities, even those of a lifetime, can also be wasted. Gina Rinehart, one of our Australian Export Heroes, in her article in Australian Resources and Investment draws comparisons between Australia and Singapore and highlights some clear differences between the two. “Despite the country’s small size, low population and lack of resources and local water supply, Singaporeans benefit significantly from the country’s policies”. “Its neighbour Australia,” she says, “is the complete opposite despite wealth generated from vast resources”. Australian’s, Ms Rinehart says “drown in red and green tape, taxes and government costs that make us less competitive.” Singapore she says on the other hand “makes a real effort to minimise red tape, has lower tax rates, enables guest labour and has no debt”. This view is reinforced by a World Bank study which placed Australia as the 34th easiest economy for trade access. Singapore, I understand tops the list.
There are enormous opportunities flowing from the resources boom for all Australian’s. They will not be realised unless we lift our game in cleaning up our act in terms trade facilitation and processes, reducing not increasing taxes and charges, having duplication and waste eliminated and encouraging not discouraging our entrepreneurs. Undertaking these fundamental disciplines will also have positive impact on the other side of the economy that is facing great hardship in this two speed economy. Failure to address these issues will simply mean the once in lifetime opportunity will be wasted while those exporters in the ‘slower lane’ will be sacrificed.
- Ian Murray, Executive Director- Export Council of Australia
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