The Queensland Resources Council (QRC) says the state government’s mid-year budget update underscores the need for policies that will ensure the resources sector continues to safeguard Queensland’s economic prosperity.

QRC CEO Janette Hewson said on Thursday the best way for the state to overcome its economic challenges was to ensure Queensland regained its competitiveness.

“With prices now falling, the best way to increase revenue from the resources sector that will benefit all Queenslanders is to bring more new projects online and encourage sustained investment in existing resources projects,” she said. 

“However, the impact of the world’s highest coal royalty tax rate in Queensland remains a significant deterrent to investment.

“As the industry has consistently pointed out, the coal sector is subject to regular commodity cycles and we’re seeing prices return to what are considered more normal levels,” Hewson said.

“Last financial year, the resources sector generated around 26% of all government revenue raised in Queensland with coal producers alone responsible for close to 20%, and contributing A$85.3-billion to the state economy.

“A fair and balanced royalty system and streamlined approvals means more projects and more money coming into Queensland for the benefit of all Queenslanders,” Hewson said.

Meanwhile, QRC welcomed the establishment of a Productivity Commission and a Resources Cabinet Committee as an industry enabler and to promote the sector’s importance to Queensland.

“Industry will work with the Queensland government to strengthen the sector.

“It was concerning to read in the Office of the Chief Economist’s latest Resources Energy Quarterly that investment in both mining and exploration has fallen over the past year. 

“A healthy pipeline of investment is fundamental to deliver new projects that create jobs and provide ongoing social and economic opportunities, especially in regional areas.”

Research undertaken by the QRC found that the number of Queenslanders who acknowledge the importance of the resources sector to our state has increased to 69%.

“While the sector is proud of the substantial contribution it makes that support all Queenslanders, declines in prices and royalties paid highlight the need for strategic planning and sensible decision-making to address emerging challenges, including global market shifts, the transition to a low-carbon economy and a lack of new investment in the pipeline,”  Hewson said.