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.

Biloela's ice addiction: Experts say local drug use rampant

DANGEROUS TOLL: Methamphetamine pure crystals (also known as ice) being heated in a glass pipe by a police drugs officer during a controlled demonstration.

BILOELA is facing a worsening drug problem, with ice in particular.

Biloela Cockatoos one game away from home grand final

WINNERS: Biloela Cockatoos celebrate.

Cockatoos to face Frenchville for grand final berth.

Vikings still in the running as Roosters loom large

The Vikings' Harry Phillips crosses the line after a spectacular individual effort to take the score to 16-14 in the final three minutes.  Photo Andrew Thorpe / Central Telegraph

Dawson Valley's freshman side is one game away from the grand final.

Latest deals and offers

Farmer crushed by falling bale of hay

Despite his injuries, the man managed to crawl to a road and flag down a passing motorist to call for help

Biloela's ice addiction: Experts say local drug use rampant

DANGEROUS TOLL: Methamphetamine pure crystals (also known as ice) being heated in a glass pipe by a police drugs officer during a controlled demonstration.

BILOELA is facing a worsening drug problem, with ice in particular.

Biloela Cockatoos one game away from home grand final

WINNERS: Biloela Cockatoos celebrate.

Cockatoos to face Frenchville for grand final berth.

Vikings still in the running as Roosters loom large

The Vikings' Harry Phillips crosses the line after a spectacular individual effort to take the score to 16-14 in the final three minutes.  Photo Andrew Thorpe / Central Telegraph

Dawson Valley's freshman side is one game away from the grand final.

Coal & Country Festival a rollicking ride

ON A QUEST: (From left) Moura Coal & Country Festival Ball 2016 entrants Rachael Briggs (Fundraiser of the Year), Elly Fiedler, Sophie Bolger (Entrant of the Year) and Jessica Lancini.

Moura festival brings town to life for week of fun.

CQ hairdressers targeted in crackdown on under paid staff

Hairdressing businesses were a key area of the CQ audit into staff pay and conditions.

Inspectors audit hundreds of businesses, recover $110,000 in wages

Die-hard fan's 34 magic Gympie Muster years

STICK AROUND FOR A BEER: Mal Williams has been at every Gympie Muster for 34 years.

Mal Williams has only missed one Muster in 35 years - the first one

Zumbo's Willy Wonka hat trick trips up Queensland brickie

Adriano Zumbo and Rachel Khoo with Zumbo's floating dessert in a scene from Zumbo's Just Desserts.

NOOSA'S Michael Basset asked to recreate floating chocolate dish.

John Lennon's killer denied parole for 9th time

John Lennon

John Lennon's killer has been denied parole for the ninth time.

Mexican band takes aim at Trump

Disguised as unhinged narcotraficantes, the Mexican-American agitators of BRUJERIA captured the mood of the citys minorities with the bands infamous and widely banned 1993 debut, Matando Geros (Killing White People), quickly becoming the Spanish-language counterparts to early grindcore masters TERRORIZER and NAPALM DEATH.  Photo Contributed

'Satanic drug lord' band challenges Trump

Willy Wonka star, Gene Wilder dead at 83

A still of Gene Wilder in the 1971 film Willy Wonka and the Chocolate Factory

Social media has already lit up with tributes to the late actor.

Gladstone couple's spontaneous Gympie Muster wedding

Craig Oglesby and Brenda Strong celebrate their wedding at the Gympie Muster with punters in front of the Main Stage.

The Gympie Music Muster was the perfect place for a wedding.

Australian Survivor's Peter: I'm no quitter

Australian Survivor contestant Peter Fiegehen.

ILLNESS forces castaway's early exit from Samoa.

Palm Lake Resort set to move in to Coast with 276 villas

Palm Lake Group has been given approval by Sunshine Coast Council to build a 276-villa over 50s resort and 120-bed aged care facility at the intersection of Caloundra Rd and Caloundra Mooloolaba Rd in Little Mountain.

New facility planned for Caloundra Rd

Warning for unit investors with price plummet prediction

The warning signs are flashing for one real estate sector in 2017 despite others performing the best they have in years and it's not going to be pretty.

One real estate sector looks set for a rocky 2017

REVEALED: Pat Rafter's $18m Coast house on the market

Check out the photos of the Coast's most expensive property for sale

The "correction we had to have" in Gladstone's rentals

UPWARD MARCH: The rental vacancy rate in Gladstone has improved for the first time in more than a year, providing a confidence boost in the market.

Vacancy rates improve with signs that things are getting betterF

ISLAND FOR SALE: Cheap Fraser Coast island drops price again

Suna Island in the Great Sandy Strait will be auctioned by Ray White Hervey Bay on Saturday morning.

This is the cheapest island you will find for sale in Australia

How a family home can fit on a 250sq m block

This is what you can build on 250m2.

Here's the floor plan of a home built on 250sq m