Mining sector spells out the good and bad of the Budget

SkillsDMC praised the Government’s training package. Chairman Ray Barker said “This Budget sets a clear direction for industry, Governments and training providers to work in partnership to ensure Australia’s long term economic prosperity.”

Australian Constructors Association welcomed the investment in skilled migration. "The Federal Budget support for major infrastructure projects and its focus on skills and training is a positive response to the challenges facing the Australian infrastructure sector," executive director Jim Barrett said.

"ACA welcomes the enhanced role for Infrastructure Australia and its focus on large projects of national significance … Infrastructure Australia has been running too lean for the challenges it needs to meet and we welcome this addition to its role and its resources.

"In less welcome news, the Government announced its intention to introduce new reporting rules, under which construction companies will be required to report taxable payments to contractors.”

Australian Minerals Explorers Council (AMEC) also welcomed the increases to skilled migration. However, chief executive Simon Bennison argued that “the Government should have developed a long term strategic reform program that addresses macro-economic issues and promotes national growth; rather than propose a short term tax grab from the mining sector."

Bennison also warned against the proposed CPRS. “No detail has been provided on the proposed carbon price, and therefore uncertainty continues for many AMEC members, who are also faced with lack of details on the MRRT, and the combined financial effect and uncertainty surrounding their projects and businesses,” he said.

The NSW Minerals Council, calling itself the forgotten resource state, said NSW will receive 0.52% of the money allocated in the first phase of the Federal Government’s Regional Infrastructure Fund from the MRRT.

NSW Minerals Council Acting chief executive Sue-Ern Tan said budget papers show that more than $380 million has already been allocated to infrastructure projects in Western Australia and Queensland over the forward estimates, with just $2 million committed to projects in NSW.

The West Australian Chamber of Minerals and Energy (CME) chief executive Reg Howard-Smith said “it is pleasing to see that the Commonwealth recognises the need for urgent solutions to address skill shortages through the government’s commitment to training, new enterprise migration agreements and a focus on regional migration.

“Until we understand the full impact the MRRT will have on the Australian resources industry’s international competitiveness, CME continues to oppose its introduction.

“In addition, CME is disappointed that infrastructure funding which has been committed, such as $480 million to the Gateway WA project, is tied to the passage of legislation for the MRRT.”