BUSINESS UPDATE (Issue 23)

VECCI ECONOMIC UPDATE

Supplied by VECCI www.vecci.org.au

For further information please contact: Daniel Sheehan (03) 8662 5227 dsheehan@vecci.org.au

IN THE PIPELINE

The CMPA is still quite busy with a number of different projects currently underway and planned for the remainder of 2005 including:

• The review of the Work Safely Reference Manual which is the resource material utilised in the Certificate II unit of competency Work Safely
• Development of the Service & Handover units under the Certificate II in Extractive Industries Training Package in conjunction with the Caterpillar Institute
• A General Meeting has been scheduled for November which will also incorporate the CMPA break up for 2005
• A document is to be developed which will be made available to all Members upon its completion which details the requirements with regards to explosives signage
• The results of both the Transport Forum and Forum to Review Work Plans and DPI Processes will be published and distributed accordingly
• Compilation of the OHS Support Documentation produced as a result of the Fixed Plant Workshop held earlier this year
• Various submissions and provisions of CMPA comment on behalf of all Members

Finding the Quarrying Balance

Tom McKenny, Roving Reporter

Following on from the report in the last newsletter, further examination of the recently released CSIRO report entitled ‘Balancing Act’ provides an overview of the Australian economy.

The report uses ‘triple bottom line’ indicators (10 social, environmental and financial indicators) as a reference to provide an approximate idea of an industry’s impact as a result of our demand for product or services.

The indicators are referenced against one dollar of ‘final demand’, which according to the report is “roughly the consumption dollar we spend in everyday life”. Simply, the report provides an insight into the resources used within our economy to produce the goods we consume.

Social indicators are employment, income and government revenue; the environmental indicators are water use, land disturbance,greenhouse emissions and energy use. The financial indicators are gross operating surplus (or profits) exports and imports.

As the report highlights where environmental, social and economic impacts occur across the full production chain, it can also be used by industry to highlight opportunities to increase benefits and reduce adverse impacts through individual and or collective action.

As the report states: “If we are to become more sustainable as a nation we need to understand what lies behind the dollars and cents we spend every day. We need to understand the triple bottom line impacts of our consumption and integrate this into our decision-making.”

In relation to the quarrying and extractive industry ‘Balancing Act’ provides information to help analyse and assess potential risk exposures and quantify impacts, set priorities and identify opportunities for action.

That is of course, of interest to CMPA members as we strive to maximise our financial position and leave a light footprint where we have passed.

The report finds that using the metric of one dollar the quarry industry environmental indicators of greenhouse emissions, water use and land disturbance are 40%, 70% and 95% below average respectively.

The social indicators of employment generation and income are 40% and 35% below average respectively while government revenue is 40% below average.

The financial indicator of operating surplus is 25% above average, export propensity is 40% above average and import penetration is equal to average.

The ‘other mining’ sector ranks 53rd out of 135 sectors in terms of value adding to the economy and contributes 0.36% of GDP according to the report. While the sector portrays a reasonable TBL account except in the area of employment generation, income and government revenue, this is explained as a result of the large and physically efficient machinery used and the requirement for relatively few operators.

This is also seen to translate into the production of relatively cheap building materials and thereby affordable construction.

An increase in labour requirements in the sector, which is considered to be a good thing, could be addressed as increased building material recycling occurs.

It is worth noting that the report’s financial indicators result is somewhat confused as construction materials have been included with gemstones such as diamonds. Hence the reports findings in profits is constrained.

Regarding future trends the report scenario of 25 million population by 2050 the requirement for concrete and bricks will be about 5% lower than present. This is based on an expected stability in the population – it is to neither shrink nor grow.

As indicated in the earlier newsletter the industry’s impact is seen to be reasonable in a triple bottom line account.

To read the report in full go to: www.cse.csiro.au/research/balancingact

Quarry Award Update

The Quarry Industry – Victoria – Award 2000 has been varied with the following being affected:

• Editing subclause 13.1.1, 13.4.1, 13.5.1, 13.5.2, 16.3.2, 16.9.3, 20.1, 20.3, 20.4.1, 20.4.2, 21.2.1, 24.2.1, 24.4.
• New subclause 13.6.1

This order shall come into force from the first pay period to commence on or after 24 September 2005 and shall remain in force for a period of six months. For a copy of the amendments please contact the Secretariat.

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