Business

Resource sector spending up 40% despite market slowdown

The resource sector's contribution to the Queensland economy is up 40% on 2010-11 figures.
The resource sector's contribution to the Queensland economy is up 40% on 2010-11 figures.

THE resources sector contributes one in every four dollars of the state's economy and one in every five jobs, according to new figures released by the Queensland Resources Council.

The council will release statewide spending data for 2011-12 that confirms despite testing market conditions, the minerals and energy sector has again increased its economic contribution to the state.

The data demonstrates that on the back of higher capital expenditures, resource companies created $36 billion in gross regional product over the 12-month period.

These companies include the state's producers of coal, metals, gas, alumina and aluminium, mineral sands, electricity and liquid fuels.

This represents a 40% increase on the resources sector's economic contribution in 2010-11.

QRC chief executive Michael Roche said that by using postcode-aggregated spending data supplied by its largest member companies, the minerals and energy sector was calculated to have spent $28 billion directly on goods and services from Queensland suppliers, and $8 billion in wages to 64,300 direct workers who resided in Queensland.

"On top of that direct spending, the sector via its high capital intensity and linkages with sectors such as transport, construction and manufacturing, supported and created another 416,000 jobs in those other sectors," Mr Roche said.

"Queensland resource companies also paid $3.2 billion in royalties to the Queensland Government and about $11 billion in taxes to the Federal Government in 2011-12.

"This economic contribution by the resources sector is an extraordinary outcome for Queenslanders when you consider the sector's physical footprint covers just 0.09% of the state's land mass," Mr Roche sad.

"Importantly, what the results show is that resource company spending spreads across Queensland, with barely a postcode not experiencing the benefits of economic stimulus from the sector."

The strongest growth in resources sector spending occurred in the Wide Bay-Burnett (+144%), the North West (+102%) and the Far North (+80%).

Mr Roche said that, as had been seen with the current downturn in coal markets, there was tremendous benefit to Queenslanders of producing a diversity of resource commodities as a hedge against increasingly volatile global market conditions. 

"The challenge now is to ensure there is a strong pipeline of projects across all commodities to sustain and grow the resources sector in Queensland," he said.

"Achieving that strong pipeline of new projects will require a clear focus on addressing cost disadvantages such as workforce inflexibility, ballooning tax and royalty imposts and regulatory green tape and red tape."

Details of the report - compiled by QRC and Lawrence Consulting - including reports at the Queensland Statistical Division and Local Government Area level can be found at www.queenslandeconomy.com.au.

Topics:  gladstone queensland queensland resources council resources spending



How to survive a bushfire in your car

IT SOUNDS like a nightmare, but it can happen.

Eight reasons to join the RFS

SPREAD across 93% of Queensland, the Rural Fire Service has about 36,000 volunteers. And you could be one of them.

What if my insurer gives me grief?

CLAIMING your insurance cover after a natural disaster can go one of two ways. It can be a breeze, or like pulling teeth.

Family scoop bargain $160K 'holiday home' in Gladstone

BARGAIN: A Biloela family has purchased 21 Ann St for $160,000. They try to get to Gladstone at least once a month.

ADVERTISED as "renovate or demolish", but snapped up for getaway.

Nightclub hell: Gladstone teen's horror night out

Molly Dawes had drink spiked while out in Gladstone.

"The second time it happened I don't remember anything past 11.30pm.

He burnt teen lover's face, wiped faeces on police cell

**** WARNING: DO NOT LIGHTEN ***TOUGH JOB: Edon Place staff witness the sad cycle of domestic violence in the Bundaberg region each day.Photo: Max Fleet / NewsMail

DISGUSTING, abusive teen smears his faeces all over a police cell.

Local Partners

Gigi Hadid: I'm 'taking the pressure off' myself

Gigi Hadid is trying to "take the pressure off" herself this year.

Ricky Gervais announces first dates of world tour

Ricky Gervais has announced his first world tour in seven years.

Johnny Depp and Amber Heard in 'final stages' of divorce

Depp's outstanding divorce money to be paid over 15 months

Mila Kunis and Ashton Kutcher welcome their second child

Mila Kunis won't be naming her second child 'Hawkeye'

First look at Russell Crowe and Tom Cruise in The Mummy

Russell Crowe in a scene from the first teaser trailer for the movie The Mummy.

HOLLYWOOD heavyweights helm serious reboot of action franchise.

Joseph Gordon-Levitt: Fame is 'unhealthy'

Joseph Gordon-Levitt

Joseph Gordon-Levitt feels bad perpetuating celebrity culture

Family scoop bargain $160K 'holiday home' in Gladstone

BARGAIN: A Biloela family has purchased 21 Ann St for $160,000. They try to get to Gladstone at least once a month.

ADVERTISED as "renovate or demolish", but snapped up for getaway.

REVEALED: Gladstone property prices hit lowest in downturn

Aerial View overlooking Kin Kora residential area, Gladstone.



Photo Brenda Strong / The Observer

GLADSTONE PROPERTY prices have hit their lowest since the bust.

Coast high-flyer's fight back from bankruptcy, $72m debt

Scott Juniper went from millionaire developer to declaring bankruptcy in2012, now he is back on top of his game again with new developments including this one in Coolum.

'Apocalyptic lending storm' causes financial collapse.

Bargain price drop on Tannum 'beach shack'

14 The Oaks Road is on the market for $759,000.

Buy an absolute beach front home for $759,000.

Ready to SELL your property?

Post Your Ad Here!