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


Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Swooping season has begun

A magpie on the touch field at Kearneys Spring Sporting Complex, Saturday, August 27, 2016.

Spring is here and the magpie swooping season has begun.

Construction starts on Hoods Lagoon boardwalk

BOARDWALK WORKS: Cameron, Ashlynn and Sandy Frost walk along Hoods Lagoon, Clermont.

Hoods Lagoon boardwalk rejuvination begins.

From Casino to CQ: Emerald bull sales

SENEPOL BULL SALE: Vendor Colin Godfrey with son Blair.

The Godfrey family travel a long way to sell bulls at Emerald.

Local Partners

CH Regional Council heads to Blackwater

Central Highlands Regional Council recently visited Blacktown to give locals the opportunity to discuss local issues with councillors.

Unveiling ceremony to honour victims of flood

AFLOAT: Floating Lantern Ceremony at the Clermont Gold and Coal Festival paid tribute to the great flood in Clermont in 1916.

VICTIMS of Clermont's 1916 flood will be honoured in ceremony.

Swooping season has begun

A magpie on the touch field at Kearneys Spring Sporting Complex, Saturday, August 27, 2016.

Spring is here and the magpie swooping season has begun.

Construction starts on Hoods Lagoon boardwalk

BOARDWALK WORKS: Cameron, Ashlynn and Sandy Frost walk along Hoods Lagoon, Clermont.

Hoods Lagoon boardwalk rejuvination begins.

From Casino to CQ: Emerald bull sales

SENEPOL BULL SALE: Vendor Colin Godfrey with son Blair.

The Godfrey family travel a long way to sell bulls at Emerald.

Coal truck driver suing mine he crashed at

Former mine truck driver who crashed 280-tonn truck suing Anglo Coal

Black lung must be investigated, and fast says victim

Percy Verrall suffers from 'black lung' disease caused by his time spent coal mining.

'I don't want young people working in the mines to go through this'

Rural property: hot to trot

RURAL PROPERTY BOOM: Maguires Real Estate and Livestock owner, Tim Maguire at the saleyards where the price of cattle is influencing the rural property market.

Rural properties in high demand.

Classic car auction draws buyers from US, Dubai

"He wants everyone to enjoy the cars, the collection got too big'

'Highly unlikely' Brad Pitt will face prosecution

It is highly unlikely that Brad Pitt will be prosecuted

WATCH: Justin Bieber grabbed in Germany

A video has emerged of singer Justin Bieber being attacked

Why The Wrong Girl is right for Jessica Marais

Jessica Marais and Ian Meadows in a scene from the TV series The Wrong Girl.

ACTOR makes the sometimes awkward character her own in new comedy.

What's on the small screen this week

Jessica Marais in a scene from the TV series The Wrong Girl.

A NEW romantic comedy debuts while footy codes ramp up for finals.

Airbourne talk drop bears, beer and taxes

Airbourne have a new album coming out and a new tour on the way.  Photo Contributed

Airbourne release album for the aussie battler

Pippa Middleton had 3000 private photos stolen

Author Pippa Middleton

Author's account hacked to access 3000 private photos

Property 200m from ocean selling for just over $100K

BEACHCOMBER PARK: Work has started on a new $19.2 million development at Toogoom.

The estate's developer is offering huge discounts for early buyers.

UPDATE: Former rodeo champ's sale rained out, now back on

Larkhill local Ken Consiglio is having an auction of most of the things on his property.

'People kept showing up and we had to turn them away'

First stages of $25 million housing development underway

New development on Madsen Rd - The Springs.

The blocks of land are much bigger than usual

Couple build their own 'tiny house' for $45k

Holly Bowen and Oli Bucher built their "tiny house" themselves, only hiring a plumber and an electrician. Photo/supplied

The house, which is built on a trailer and can be towed.

Rocky proves prime real estate in latest REIQ report

Kas Woch sold this Wood St home in Depot Hill for $107,000 in August.

A new investor's market as Rocky house prices hit lowest in state

Sunshine Beach property breaks real estate record

The property overlooks Sunshine Beach, as the backyard lawn meets the sand.

Sunshine Beach mansion sale smashes real estate record