PERTH (miningweekly.com) – A new report by Canberra think tank The Australia Institute (TAI) has suggested that the Queensland coal industry is a less-than-impressive contributor to the state’s economy.
In its analysis of the coal industry, TAI noted that the industry was one of the smallest employers in the state, accounting for only 1.2% of Queensland’s economy, or around 24 350 jobs.
Furthermore, TAI claims that while the industry would pay about A$2-billion in coal royalties during the 2014/15 financial year, it only represented about 4% of the state government’s revenue.
The revenues generated from coal royalties were similar to those from vehicle registrations and interest on funds saved for superannuation and long service leave entitlements.
The TAI also reported that despite the “modest” contributions made by the coal industry to the state budget, the players in the industry were recipients of considerable government assistance, with the TAI pointing out that about $8-billion of government funding had been invested into the sector over the last six budgets.
Moreover, the TAI accused the coal industry of negatively impacting other industries within the Queensland economy, saying the high exchange rate, competition for land, water and labour have had various effects on the other industries.
The Queensland Resources Council (QRC) has been scathing in its response to the latest report, calling it an embarrassment for the TAI.
“TAI is receiving funding from antimining activists to ‘change the story’ of coal, regardless of the facts,” said QRC CEO Michael Roche.
He noted that resource royalties, of which coal had contributed A$1.8-billion during 2013/14, represented the third largest own-resource revenue item in the Queensland budget, after payroll tax and transfer duty.
“Our members employ 43 000 direct employees, and coal companies make up 66% of those numbers – or the equivalent of nearly 30 000 jobs – and that does not take into account the contractors who are employed by the coal sector,” Roche said.
Furthermore, Roche noted that in 2012/13, resources sector companies spent almost A$38-billion in Queensland on wages, goods and services and communities.
“That direct spending injection is calculated by expert economic modelling firm Lawrence Consulting to have generated total spending of A$76-billion – one-quarter of the state’s economy.”