This is what the Minerals Council says -
Ref: 28-10
Wednesday, 26 May 2010
NSW Budget must focus on business competitiveness and investment
“Grow don’t gouge” is the message from the NSW Minerals Council ahead of the 2010 NSW State Budget, CEO Dr Nikki Williams said today.
Releasing the Budget Submission to NSW Treasurer Eric Roozendaal, Dr Williams said business and industry are “essential partners” for the Government to generate the economic growth and revenues needed to provide the first class public services that the people of NSW deserve.
“We’d much prefer to see governments encouraging industries and businesses to grow, rather than taxing them into oblivion,” Dr Williams said.
“Earlier this year Ports & Waterways Minister Paul Macleay said expanded capacity at the Port of Newcastle would ‘deliver up to 25,000 jobs in the Hunter over the next six years and generate an additional $500 million of coal royalties each year’. It is a perfect illustration of the long-term benefits of encouraging business and investment.
“The temptation to target industries that require long run, high risk investment, to address short-term fiscal problems must be avoided. To that end, we again welcome the recent announcement by the Treasurer that there will be no increase in royalties in this Budget.
“The NSW Government must focus on policies that create a positive environment for investment, including in the mining industry. In some circumstances like exploration programs, limited government investment will assist. These investments will reap the NSW Government long-term, steady and reliable revenue streams.”
In addition to State specific Budget challenges, Dr Williams said the NSW Government needed to play an active role in representing the interests of NSW in the debate on the Federal Government’s proposed Resources Super Profit Tax.
“The mining industry is holding ongoing discussions with the NSW Government, which has shown it is acutely aware of the potential impacts of this proposed new tax on mining here. We are hopeful they will make the case for fair and genuine reform that won’t jeopardise the $17 billion of investment currently on the books in NSW.”
The 11 key recommendations in the submission include:
1. Listen to those regional communities which host mining operations which are calling for greater investment of existing royalties to ensure social infrastructure keeps pace with their aspirations.
2. Ensure that sufficient human and other resources are allocated to ensure that the Government’s commitments to address the broader problems associated with duplicative regulatory requirements are delivered.
3. Focus on strategic land use planning in the mining regions of NSW. This approach would allow the benefits and costs of different land use patterns to be assessed up front, helping shape future development in the region and creating a vision that all stakeholders can embrace. The Government needs to educate the community about the Part 3A process and its role in balancing competing interests.
4. Make a long-term financial commitment to minerals exploration, similar to the New Frontiers program.
“The $23 billion NSW mining sector provides more than 65,000 direct jobs in mining and minerals processing. While it may not be fashionable to say so at the moment, just like Queensland and Western Australia, New South Wales is very much a resource State,” said Dr Williams.
Global demand for commodities mined in NSW is projected to grow strongly over the next five years. NSW has capital expenditure of more than $5.2 billion in projects either under construction or committed. Additional projects worth almost $12 billion are on the books.
“The percentage of these projects which will proceed to the advanced stage will depend on a wide range of factors including global demand and access to capital,” Dr Williams said.
“Critically for the NSW economy, other determining factors such as the cost competitiveness of developing NSW deposits versus those held elsewhere, sovereign risk factors, regulatory efficiency and policy settings will also play a decisive role. The potential for economic growth, should NSW get these issues right, is immense.”
Ends.
Notes:
NSW Budget must focus on business competitiveness and investment
“Grow don’t gouge” is the message from the NSW Minerals Council ahead of the 2010 NSW State Budget, CEO Dr Nikki Williams said today.
Releasing the Budget Submission to NSW Treasurer Eric Roozendaal, Dr Williams said business and industry are “essential partners” for the Government to generate the economic growth and revenues needed to provide the first class public services that the people of NSW deserve.
“We’d much prefer to see governments encouraging industries and businesses to grow, rather than taxing them into oblivion,” Dr Williams said.
“Earlier this year Ports & Waterways Minister Paul Macleay said expanded capacity at the Port of Newcastle would ‘deliver up to 25,000 jobs in the Hunter over the next six years and generate an additional $500 million of coal royalties each year’. It is a perfect illustration of the long-term benefits of encouraging business and investment.
“The temptation to target industries that require long run, high risk investment, to address short-term fiscal problems must be avoided. To that end, we again welcome the recent announcement by the Treasurer that there will be no increase in royalties in this Budget.
“The NSW Government must focus on policies that create a positive environment for investment, including in the mining industry. In some circumstances like exploration programs, limited government investment will assist. These investments will reap the NSW Government long-term, steady and reliable revenue streams.”
In addition to State specific Budget challenges, Dr Williams said the NSW Government needed to play an active role in representing the interests of NSW in the debate on the Federal Government’s proposed Resources Super Profit Tax.
“The mining industry is holding ongoing discussions with the NSW Government, which has shown it is acutely aware of the potential impacts of this proposed new tax on mining here. We are hopeful they will make the case for fair and genuine reform that won’t jeopardise the $17 billion of investment currently on the books in NSW.”
The 11 key recommendations in the submission include:
1. Listen to those regional communities which host mining operations which are calling for greater investment of existing royalties to ensure social infrastructure keeps pace with their aspirations.
2. Ensure that sufficient human and other resources are allocated to ensure that the Government’s commitments to address the broader problems associated with duplicative regulatory requirements are delivered.
3. Focus on strategic land use planning in the mining regions of NSW. This approach would allow the benefits and costs of different land use patterns to be assessed up front, helping shape future development in the region and creating a vision that all stakeholders can embrace. The Government needs to educate the community about the Part 3A process and its role in balancing competing interests.
4. Make a long-term financial commitment to minerals exploration, similar to the New Frontiers program.
“The $23 billion NSW mining sector provides more than 65,000 direct jobs in mining and minerals processing. While it may not be fashionable to say so at the moment, just like Queensland and Western Australia, New South Wales is very much a resource State,” said Dr Williams.
Global demand for commodities mined in NSW is projected to grow strongly over the next five years. NSW has capital expenditure of more than $5.2 billion in projects either under construction or committed. Additional projects worth almost $12 billion are on the books.
“The percentage of these projects which will proceed to the advanced stage will depend on a wide range of factors including global demand and access to capital,” Dr Williams said.
“Critically for the NSW economy, other determining factors such as the cost competitiveness of developing NSW deposits versus those held elsewhere, sovereign risk factors, regulatory efficiency and policy settings will also play a decisive role. The potential for economic growth, should NSW get these issues right, is immense.”
Ends.
Notes:
1. The full submission is attached to this email.
2. Dr Nikki Williams is available for interview.
Scott Keenan
Media & Communications Manager
skeenan@nswmin.com.au
9274 1413 or 0438 280 073
www.nswmin.com.au
www.twitter.com/nswmc
Scott Keenan
Media & Communications Manager
skeenan@nswmin.com.au
9274 1413 or 0438 280 073
www.nswmin.com.au
www.twitter.com/nswmc
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