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.

Labor candidate hears community concerns

LABOR'S STANCE: Labor candidate for the seat of Dawson Frank Gilbert visited Airlie Beach and Proserpine yesterday, meeting with locals to hear their concerns. 
Photo Rory Sheavils / The Guardian

Labor candidate hears community concerns

Second loss of season for Raiders

FACE OFF: Petelo Kelemete looks for a hole in the Kuttabul defensive line during last night's match.
Photo Rory Sheavils / The Guardian

The Raiders went down to Kuttabul at home last night.

Cruise draws big crowd in second year

JUST CRUISIN': Whitsunday Cruisin' Car Club's Ashlee and Holly Coyte show off their ride at Cruisin' Whitsunday this morning. 
Photo Rory Sheavils / The Guardian

Cruise draws big crowd in second year

Latest deals and offers

Christensen campaign signs defaced

Federal MP George Christensen's campaign to retain the seat of Dawson was targeted by vandals last night.

Labor candidate hears community concerns

LABOR'S STANCE: Labor candidate for the seat of Dawson Frank Gilbert visited Airlie Beach and Proserpine yesterday, meeting with locals to hear their concerns. 
Photo Rory Sheavils / The Guardian

Labor candidate hears community concerns

Second loss of season for Raiders

FACE OFF: Petelo Kelemete looks for a hole in the Kuttabul defensive line during last night's match.
Photo Rory Sheavils / The Guardian

The Raiders went down to Kuttabul at home last night.

Cruise draws big crowd in second year

JUST CRUISIN': Whitsunday Cruisin' Car Club's Ashlee and Holly Coyte show off their ride at Cruisin' Whitsunday this morning. 
Photo Rory Sheavils / The Guardian

Cruise draws big crowd in second year

UPDATE: Multiple fires hit Bowen over night

DUEL EMERGENCIES: Two fires broke out almost simultaneously in Bowen last night.

TWO fires broke out almost simultaneously in Bowen last night.

Buckets of fun

HIGH FASHION: Salvation Army Cannonvale Family Store manager Denise Norder is excited about the runway fashion fundraiser. Photo: Rory Sheavils

Buckets of fun

The best retro movies of the week? May 27 - June 3

Gregory Peck Photo Contributed

This week TV fan get to see Tom Cruise in a 1980s classics

Barnaby Joyce talks Johnny Depp's dogs in Tweed

Deputy Prime Minister Barnaby Joyce talks about Johnny Depp's dogs Pistol and Boo...

Billy Slater talks Origin Team

Queensland Origin great Billy Slater.

Queensland Origin great Billy Slater talks about this years team and his return to...

Road rage caught on Dashcam

Attack with a baseball bat caught on Dashcam

Video of a violent road rage incident in Orange last December.

Own Sunshine Coast property? You’re about to make money

UP AND UP: Property owners are likely to win from rent and price increases but tenants and first home buyers might not be so happy. Photo: Brett Wortman / Sunshine Coast Daily

Good new for property owners, not so good for buyers and tenants.

Sale nears on last large block of land in Coolum

The 43.37ha property on South Coolum Rd has sold.

South Coolum Rd property to be land banked