JOHANNESBURG (miningweekly.com) – The global competitiveness of the Queensland resources sector relies on the state and federal governments providing high-quality economic infrastructure ahead of demand; however, with governments stepping back over the past decade, the sector is now calling for a revival of the targeted infrastructure investment to avoid playing “catch-up” in the next decade.
Queensland Resources Council (QRC) CEO Michael Roche said that, prior to the state’s divestment of port and rail ownership through the sale of 99-year leases to private sector interests, government had invested in infrastructure ahead of demand, confident that by creating commercial opportunity, sufficient economic activity would allow them to recoup their investment.
Now government Ministers and advisers were seemingly “gun shy” of public sector borrowing to fund infrastructure projects, despite a good commercial payback to the state or state-owned business.
“For the resources sector to take advantage of continuing Asian demand for minerals and energy, industry and government need to consider how best to provide infrastructure ahead of demand and in a least-cost way. Now is the time to be investing in the next resources sector upswing. Ten years from now we don’t want to be playing catch-up,” he said.
Roche noted that, with a shortfall in private-sector capacity to pay for and progress infrastructure development, as government had “come to expect”, government had a “genuine industry development” role in infrastructure.
Further privatisation of government assets had been halted; however, QRC questioned whether state-owned enterprises would be allowed to develop essential enabling infrastructure in Queensland.
“That does beg the question – if you are going to retain government assets, why would you prevent those businesses from pursuing commercially justified investments?” he queried.