2019 CMPA Annual Dinner – Chairperson’s Speech

An Extract from the CMPA CHAIRPERSON – GARRY CRANNY’ Annual Dinner speech for those members who were not in attendance, highlights the key issues we in the industry are now facing and into the future.

“Minister – I am in no doubt your stewardship will impart an indelible mark of positivity and improvement on the Resources portfolio, to the betterment of the Extractive Industries, especially the construction materials sector here tonight and Earth Resources Regulation. Equally, the regional communities of Victoria about which you are so passionate and embedded, can be justifiably pleased and optimistic at having one of their own as the Minister for both Agriculture and Regional Development.”

Future Growth – Planning Group of DELWP, July 2019 publication “Victoria in Future, Population Projections 2016 to 2056”, based on ABS data, reported –

*1976 – Population 3.8m
(2.7m, or 71% in Greater Melbourne);

*2018 – Population 6.5m
(5.0m, or 77% in Greater Melbourne);

*2056 – Population 11.2m
(9.0m, or 80% in Greater Melbourne);

*(“Plan Melbourne 2017-2050” growth
forecast to 10.0m by 2050);

*2018 – 2056 Population in Regional Victoria forecast
1.5m to 2.2m (700,000 or 47% growth over 36 years);

*3.2m Net Migration of which 2.9m Overseas (90%);

*110,000 – 140,00 per annum,
at an average of 125,00 per annum;

*VicRoads – 100,000 additional vehicles
per annum registered;

• In 2016 the Victorian State Government introduced the first 30 Year Infrastructure Strategy – the nine (9) government sector initiative finally divorced infrastructure planning on from its former 4 year boom and bust cycle of State elections, a policy direction that warrants universal support;
• Victorian State Government currently has $57 billion of transport projects underway as part of its $107 billion capital projects budget, in response to an existing infrastructure deficit and the forecast future demands of both Greater Melbourne and, importantly, Regional Victoria;
• Supplementing this, it is hoped a significant and equitable portion of the Commonwealth 2019 Budget allocation of over $100 billion across the next 10 years, $23 billion in 2019/20 (this FY year) finds its way to Victorian road and rail projects; However, these latest population forecasts suggest it may not be enough!
• Various Infrastructure Australia, 2019 Audit Reports, e.g. “An Assessment of Australia’s Future Infrastructure Needs”, “Urban Transport Crowding and Congestion” and their “Infrastructure Priority List” make for compelling reading and support the view that – The current Construction Boom being experienced in Melbourne, will simply be ‘the norm’ for construction activity over the next 20 plus years;
• The Joint Ministerial Statement (JMS) of June 2018 by the Treasurer and then Minister for Resources, The Hon Tim Pallas and the Minister for Planning, and The Hon Richard Wynne, set the future landscape by outlining the challenge of ‘ensuring a ready supply of raw materials by putting in place the right protections for quarries. Part of a proactive plan to drive affordability of extractive resources, while also ensuring the right balance between the State’s quarry industries and local communities’;
• The JMS clearly and publicly links the importance the Andrews Government places on the Extractive Industries and delivery its infrastructure program, which is targeted at securing the future economic prosperity of Victoria and the continued livability of Melbourne;
• That JMS link and the inherent responsibilities, are also the cornerstone for raising awareness in the community about the important role of quarries to a prosperous, expanding Victoria and our future quality of life;
• In the CMPA’s first meeting with Minister Symes, the Minister made it clear there is a need for our industry to “flip the narrative” of current public perception about quarries and trucks on roads – how right she is!

Arguably, the economic drivers, the policy settings and the performance of the Victorian economy have seldom, if ever, been more conducive to activity and investment in our Extractive Industries sector, consider:

1. Victoria is the fastest growing economy in Australia at 3.5% in 2017/18 (National economic growth of 2.8%);
2. Strong Government Infrastructure Program – $14.2B in 2019/20 and $40+ billion pipeline of Government Infrastructure over next 4 Years;
3. Victoria’s economy enjoys a “Triple-A” credit rating – no impediment, if so decided, to access further government borrowing to fund additional infrastructure projects;
4. Private sector investment in residential, industrial and commercial developments continues at close to peak levels;
5. In short – Construction activity in Melbourne “booming”; that said
6. While Melbourne is the hub of the State’s economy, regional infrastructure and development in support of job creation and thriving regional centres needs to also be vigorously pursued and not overlooked – a vital element of Victoria’s future prosperity.

• All of this suggests the Extractives industries are experiencing exciting times;
• However, the pressures this exponential growth is exerting on the Supply vs Demand equation and the related issue of road transport, especially in an expanding Metro Melbourne, cannot be understated.
• Striking the right supply balance between accessing low cost construction materials and meeting reasonable Community expectations about maintaining both ‘livability’ and our natural ecosystems, is a legitimate and overriding consideration that requires new, more innovative approaches and improved community outcomes;
• It is a collective task, that of government, industry and the bureaucracy, inclusive of regulators working together, but it also presents the prospect of an abundance of future opportunities for more Victorians!

Garry Cranny also mentioned:

• Helping Victoria Grow, Extractive Resources in Victoria – Demand and Supply Study to 2050, July 2016 – Update in 2018/19
• Helping Victoria Grow – Extractive Resources Strategy, June 2018
• Joint Ministerial Statement of 16 August 2018, by Hon Tim Pallas MP, Treasurer and Minister for Resources, and Hon Richard Wynne MP, Minister for Planning – “Extractive Resources, Rock Solid Foundations for Victoria’s Growth”.
• Earth Resources Regulation (ERR) – Continuous Improvement Plan (CIP) and the Commissioner for Better Regulation, Anna Cronin’s – “Getting the Groundwork Right, Better regulation of mines and quarries”.

In closing

• 2019 has been more of a BAU year following the flurry of activity in 2018 leading into the November State Election. That is not to say it has been without its challenges, but in my view, all things considered, it has been another positive year for our Extractive Industries sector in Victoria.
• This is especially so in terms of business activity, along with employment security and the creation of new jobs and high $ value downstream investment in plant, equipment and services – all positive contribution indicators to the State economy;
• Change for the better, especially that which brings greater certainty and a sense of business security through legislative and regulatory change, is an arduous, frustrating journey;
• The Extractive Industries sector, represented by the CMPA and the CCAA, not dissimilar to other industries, are that journey in partnership with the Regulator and others representing the State Government;
• Our hope and belief are that a continuation of the inclusive, collaborative approach adopted in recent years, will produce a more “holistic government approach” and Community confidence as its outcome;
• The CMPA is determined we achieve a ‘proper balance’, that will enable a period of stability and sustainable growth for our industry to the benefit of all Victorians;
• In this context, the CMPA remains strongly committed to being proactive and overwhelmingly positive in our working relationship with DJPR/Earth Resources Regulation for Government;
• Finally, on behalf of our voluntary Management Committee, all CMPA Members, our guests and VIPs here tonight, I take this opportunity to convey our thanks and sincere appreciation to the outstanding efforts of our Secretariat, led by Dr Elizabeth Gibson.
• Elizabeth’s small, but enthusiastic team comprised of Gavin Moreira and Alissa van Geet, do a wonderful and at times under-recognised, or adequately acknowledged job, always in the interests of all Members;
• It is of particular comfort to myself as Chairperson and my fellow Management Committee members, to know our (Secretariat) people are not only strongly supported, but also mentored by our highly respected Honorary CEO, Ron Kerr – many thanks Ron;
• Thank you, one and all, for your attendance in Marysville tonight and for your kind attention. Please enjoy the remainder of the night and importantly, please continue to be an active and engaged Member of your CMPA.

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