THE AUSTRALIA Institute has outdone itself with an economic analysis of the Queensland resources sector that would embarrass the North Korean government.

‘TAI has produced some howlers in the past but today’s effort takes the cake,’ said Queensland Resources Council Chief Executive Michael Roche.

‘The report details all manner of state government business expenditure but completely ignores the other side of the balance sheet.

‘Almost every capital project undertaken by government-owned businesses for resources sector power supply and distribution, water, rail and port capacity gets a headline.

‘Studiously and fraudulently avoided is acknowledgement that these projects were executed on a fully commercial basis, with resources companies entering into commercial contracts that underwrote the capital expenditure and provided commercial returns to government-owned businesses.

‘Not only were these projects undertaken at no cost or risk to taxpayers but their commercial returns were served up as government-owned business dividends in successive state budgets.’ 

In 2009-10 the then QR National coal freight business reported earnings before interest and tax (EBIT) of $224 million. The associated coal network (track) business reported an EBIT of $277 million, with a dividend to the Queensland Government of $215 million.

A search of the document for the word ‘dividend’ will produce a nil return.

Mr Roche said the TIA report was remarkable for turning out an instant collection of howlers such as:

• A barge landing at Aurukun (there is no mine at Aurukun).
• The capital cost of expanding the Meandu coal mine (supplying Tarong Power Station) is being recovered through electricity charges. The government owns the mine and the power station.
• Rail infrastructure concessions totalling more than $1 billion over 2012-13 and 2013-14 were not for the benefit of resources companies (who pay full commercial rates for track use and freight services) but essentially a budget subsidy for passenger transport and unprofitable regional freight services.

‘Virtually the only accurate account of state government expenditure is that by the Mines Department, which is tiny compared with the royalties returned to the state government each year,’ Mr Roche said.

‘The current State Budget forecasts that royalties of worth some $15 billion will be collected from the Queensland resources sector over the next four years, but that’s only part of the equation.

‘Last financial year, resources sector companies spent almost $38 billion in Queensland on wages, goods and services and communities.

‘That direct spending injection is calculated to have generated total spending of $76 billion – one quarter of the state’s economy.’

Mr Roche said the latest TAI report comes as no surprise, given that the organisation’s executive director is a founding member of the anti-coal and gas movement trying to shut down Queensland’s leading export industries.

‘TAI is a sausage machine for reports that deliver the same answer every time, regardless of the question,’ Mr Roche said.

www.qrc.org.au

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VECCI Chief Executive Mark Stone said the organisation welcomed today’s red tape reduction measures announced by the Minister for Small Business, Bruce Billson MP, delivering an estimated $56 million reduction in compliance costs for eligible small businesses.

"The administrative changes will provide red tape relief to an estimated 372,500 small businesses nationally and answer one of VECCI’s 2013 Election priorities for cuts in red tape," Mr Stone said.

"Approximately 32,500 businesses with no GST reporting requirements will no longer have to lodge a business activity statement (BAS) while a further 340,000 businesses will no longer have to interact with the PAYG instalment system, freeing up time and saving on preparation and filing costs.

"These sort of practical measures save time and money and let small business women and men get on with building better businesses, serving more customers and providing jobs and wages to millions of Australians. 

"A continuing red tape reform agenda is vital to ensuring Victoria remains prosperous and competitive and Minister Billson and the Government are to be commended for these latest initiatives."

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the peak body for employers in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

www.vecci.org.au

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UNESCO’s World Heritage Committee (WHC) has delivered a vote of confidence in Australia’s ongoing management of the iconic Great Barrier Reef (GBR). 

Queensland Resources Council Chief Executive Michael Roche said all Australians would welcome the committee’s decision in Doha (Qatar) to reject activist calls to place the reef on the World Heritage ‘in-danger’ list.

‘We are pleased the committee is as focused on the future management of the Great Barrier Reef as we are here,’ Mr Roche said.

‘The decision is global acknowledgement that Australia is on track to deliver a long-term plan for conservation of the Great Barrier Reef’s outstanding universal value (OUV).

‘The federal and state governments’ progress on improving the reef’s management and health is evident from the recently released Queensland Ports Strategy and Reef Water Quality Report Card.’

Mr Roche said the report card confirmed science-based programs were improving reef water quality, which in turn, would play a role in reducing Crown-of-Thorn starfish outbreaks.

Storm damage, starfish outbreaks and coral bleaching were identified by the Australian Institute of Marine Science in 2012 as the major threats to reef health.

‘In relation to future port management, the Cumulative Impact Assessment prepared for the Abbot Point coal terminal expansion has created a new standard for informing government decision-makers.

‘The cumulative approach to environmental impacts gave the federal government and the Great Barrier Reef Marine Park Authority the scientific confidence they needed to approve the project subject to 142 conditions.

‘Maintaining the outstanding universal value of the Great Barrier Reef was the centrepiece of the assessment process, which has set a world class benchmark for marine precinct management.’

Port-related activities along the 2,300 kilometre-long Great Barrier Reef occupy less than one percent of the coastline and the areas set aside for sediment relocation represent less than 0.02 percent of the world heritage property area.

www.qrc.org.au

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The Council of Small Business of Australia (COSBOA) has partnered with the Victorian Government to bring the key issues facing small business to the top of the national agenda by co-hosting the 12th annual National Small Business Summit to be held at the Crown Conference Centre, Melbourne on 7 – 8 August 2014.

Robert Mallett, Chair for COSBOA said that Melbourne was the logical choice for this year’s summit location with the next State election for Victoria scheduled for Saturday, 29 November and the Small Business Festival Victoria running from 1 - 31 August, providing a robust platform for debate and discussions.

“Partnering with the Victorian Government will help to build on the momentum of last year’s hugely successful Summit held in the lead up to the federal election, and will ensure that COSBOA continues to provide a strong voice for Australian small businesses,” Mr Mallett said.

“We invite anyone interested in the health, wealth and wellbeing of the small business sector to participate in the important debates and discussions at the 2014 National Small Business Summit to help shape the future of our country and economy.”

The 2014 Summit is once again expected to draw a stellar line-up of speakers and attendees, such as the Prime Minister, Leader of the Opposition, Treasurer and Small Business Commissioner.

“The networking opportunities and depth of conversation presented will move the issues facing small business forward. The Summit attracts small business representatives, senior politicians, bureaucrats and big business representatives in an annual exchange of ideas, opinions and experiences aimed to drive change and build productivity,” added Mr Mallett.

“The theme of People, Policy and Productivity will continue to drive the Summit agenda and COSBOA will remain focussed on vital issues such as workplace relations; the collection of superannuation; contract law and competition policies; women in business and the burdensome compliance and regulation demands placed on small business people.

“Small businesses are a major part of the Australian economy, employing over 4.5 million people and greatly contributing to local communities. It’s small business people who have the capability to innovate and deal with adversity, and COSBOA is committed to ensuring they receive the recognition and support they need and deserve.”

Registrations for the 2014 National Small Business Summit are now open.

Visit: www.nationalsmallbusinesssummit.com.au for more information and to register today.

http://www.cosboa.org.au/

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