Industry responses to State Budgets: NSW and QLD

The mining industry’s contribution to New South Wales’ bottom line will surge from an estimated $953 million in 2009/10 to $1.77 billion in 2010/11 – an increase of 85 per cent.
“Mining is again proving to be the engine room of the NSW economy driving the State Budget back into the black,” NSW Minerals Council CEO Dr Williams said.
“State revenue is expected to grow by $2.2 billion in 2010-11 and $815 million of that will come from mining. Yet again the minerals industry is punching above its weight.
“This underlines the importance of controlling the cost of doing business in NSW.
The $21.5 million allocated to the $100 million Clean Coal Fund will help to develop low emissions coal technologies and complement the industry’s $1 billion commitment to research and development.
“The coal industry is working on the rapid demonstration and deployment low emissions technologies such as Carbon Capture and Storage,” Dr Williams said.
“We applaud the NSW Government’s commitment to the Clean Coal Fund and the 10 new projects it is supporting. This is another important step towards a low emissions energy future.”
Queensland Resource Council chief executive Michael Roche said the Treasury forecast of $3,243 million in resource royalties and land rents over the next 12 months represented a 63 per cent improvement over the current financial year on the back of improved commodity prices.
“This says two things. First, that the resources sector is paying its fair share to the real owners of the state’s resources - the people of Queensland. Secondly, the royalty regime in Queensland is responsive to price movements.
“In other words, if the price received for a Queensland mineral commodity such as coal or copper rises, so does the royalty paid to taxpayers.”
Roche was responding to Federal Government claims that royalties are part of a “clumsy, tonnage-based system”.
“‘Over the next four years, the Treasury is forecasting that minerals and energy companies in Queensland will pay Queensland taxpayers almost $13 billion free and clear of wages, salaries, infrastructure, community support programs, and corporate taxes to the federal government.
“Importantly, the people of Queensland get the lion’s share of this dividend, as they are entitled under the Australian Constitution,” said Roche.
He said that Treasurer Andrew Fraser had sought to meet community expectations on service delivery and a sizeable capital program in the Budget.
“In all of this difficult budget juggling act the Treasurer has found room for a modest replacement program to promote the government’s exploration ambitions and support its project and tenure approvals streamlining agenda,” Roche said.
The new Greenfields 2020 program valued at $18 million over four years is a modest down-payment on the funding for ‘pre-competitive geoscience’ that will be required if the government wants to achieve its 2009 election pledge to make Queensland Australia's 'greenfields exploration capital' by 2020.
“Clearly, the QRC would have preferred new funding similar to the $29 million Smart Mining program that started in 2006 and concludes at the end of this month,” Roche said.
“Recognising that state budget position is tight, we must assume that the $18 million commitment was as much as could be afforded right now.
“However, given the success of the previous Smart Mining and Smart Exploration programs, there is clear incentive to top up this new funding commitment in later years as budget circumstances improve.”