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Queensland Economy Update

Posted on 05 Dec 2013

A record $37.9 billion was spent by minerals and energy companies in Queensland last financial year.

The 2012-13 postcode analysis of wages and salaries paid, goods and services purchased and community contributions from 40 of the state’s leading minerals and energy companies was released today by Queensland Resources Council Chief Executive Michael Roche.

Direct spending by resources companies reached most Queensland Local Government Areas and generated an additional $37.7 billion in ‘second round value-add’ economic activity, according to an analysis prepared by independent economics experts, Lawrence Consulting.

‘What this confirms is that once more the minerals and energy sector was responsible directly and indirectly for one in every four dollars in the state’s economy and almost one in every five jobs,’ Mr Roche said.

‘From a starting point of 43,000 direct employees – excluding contractors – an additional 400,000 full-time equivalent jobs were generated, with almost half those in the Brisbane region.

‘This is the result of the very high levels of expenditure, their capital intensity and the resources sector’s significant reach across other industry sectors in Queensland such as construction and transport.

‘This is another reminder of the investment that every Queenslander has in the future of a diversified and vibrant minerals and energy sector,’ he said.

Mr Roche said coal industry spending represented just over half the sector’s $37.9 billion cash injection to Queensland in 2012-13 with oil and gas ramping up to a 31 percent share and metals contributing 14 percent.

‘Oil and gas industry spending of $11.7 billion was a big factor in offsetting the well-publicised cost cutting and investment slowdown in the coal industry,’ he said.

‘The challenges facing the Queensland coal industry are well documented as the transition from investment to production takes hold.

‘In 2014, the first exports of liquefied natural gas (LNG) are scheduled from new processing plants on Curtis Island.

‘That will be another milestone in the transition timetable as Queensland comes off a decade of massive investment in the state’s future.

‘In 2013-14, we expect to see another 12 months of strong investment from oil and gas but it remains to be seen whether this will be sufficient to offset continuing belt-tightening in the coal sector.

‘The Queensland story for the next few years is about translating a golden period of investment into sales of minerals and energy resources along with the expertise and the technology developed to win them.’

An ABS Statistical Division breakdown of resources sector spending across Queensland in 2012-13 revealed an almost 81 percent jump to $2 billion on the Darling Downs and a 13 percent increase in the Brisbane region to $16.5 billion.

‘The increase in gas exploration and development expenditure is obvious on the Darling Downs while goods and services purchases were the drivers for Brisbane’s improved result,’ he said.

The Mackay region – comprising the city of Mackay and the northern Bowen Basin coal region – endured a 12 percent drop in spending as a result of the coal industry’s belt tightening while the North West also felt the sting of soft global markets, high production costs and a high dollar.

‘The state’s resources diversity has delivered a record economic contribution to the people of Queensland but there’s also a salutary reminder that our hard won reputation as a minerals and energy supplier of choice should not be taken for granted,’ Mr Roche said.

‘I urge all Queenslanders to visit the QueenslandEconomy website (www.queenslandeconomy.com.au) and learn about the connections between their towns, their regions and their state’s leading export sector.

‘There’s a wealth of new and accessible information including royalties paid and the nature of community contributions for every local government area.

‘Just type in the name of your town or its postcode and let the technology do the work,’ Mr Roche said.

 

Source: www.qrc.org.au


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