A new report has confirmed the growing contribution of Queensland’s resources sector to the state’s economy, well beyond the billions of dollars in royalties and taxes it generates for the Queensland and Federal Government.
A Queensland Resources Council (QRC) report shows the amount of money spent by mining and energy companies on local goods and services rose by $1 billion, or four per cent, in 2020-21 to reach $27.7b.
QRC chief executive Ian Macfarlane said the report was an important measure of the commitment of member companies to supporting local businesses and supply chains in the regions in which they operate across Queensland.
“The $27.7b spent locally in 2020-21 means resources companies operating in Queensland are now spending a record 82 per cent of their total procurement budgets in this state, which is a great outcome,” he said.
“This means the benefits flow through to everyone, from the companies providing and servicing the big mining machinery to the local food store providing catering for functions and conferences that a resources company might host.”
Macfarlane said while taxes and royalties from resources companies help governments pay for hospitals, schools and essential services, the report shows how important the sector is to supporting local jobs and economies, particularly in regional areas.
“Nearly half the total spend on goods and services by our sector was spent outside the Greater Brisbane area and provides tremendous flow-on benefits in those communities,” he said.
“It has also been very encouraging to see Queensland businesses stepping up to overcome many of the supply chain issues caused by the COVID pandemic to meet the growing demands of resources companies.
“This has enabled our sector to continue operating at full production, which has kept the Queensland economy strong during the fall-out of the global pandemic.”
Macfarlane said the total economic benefit to Queensland in 2020-21 from the resources and energy sector was a phenomenal $84.3b. It supported one in every six jobs and one of every five dollars spent in Queensland can be linked to resources companies.
He said the report clearly demonstrates why the Queensland Government needs to reconsider its controversial coal royalty tax hike, which has thrown the resources sector’s future into jeopardy.
“If we want the resources sector to continue to underpin the state’s economic recovery and deliver jobs in the long-term, the industry needs to continue to attract global investors,” he said.