FROM THE CMPA SECRETARIAT (Issue 42)

Good News for 2009

The present financial climate is causing concern to many, however as RON KERR, the CMPA’s Honorary CEO highlights there is good news within it all especially for construction material processing businesses.

WITH all the doom and gloom around at the moment, there are presently a number of positive indicators for our sector. Some of the more noteworthy indicators include:

• Diesel fuel prices are off the boil, peaking at $1.90, down to $1.20
• Fuel tax credits have impacted on the balance sheets of sites after their introduction in July 2008
• Interest rates have peaked and are now rapidly dropping
• There is a 10% temporary investment allowance available for businesses that start to hold or start to construct an asset after 13 December 2008 and before the end of June 2009. Assets must be ready for use by the end of June 2010
• Skilled labour is migrating away from the mining sector, with reports of increased enquiries at Member’s sites seeking employment opportunities
• Key consumables, such as steel and copper, have peaked and there is evidence of price reductions starting to occur
• Victorian councils received over $62 million in the Federal Government’s Regional and Local Community Infrastructure Program
• Public capital and maintenance infrastructure programs are being considered as one means of mitigating perceived job losses

With all of these positive parameters, as an industry there is a degree of confidence reflected by many Members. It is anticipated that revenue will continue to be forthcoming however at slightly reduced volumes.

So overall, this year has considerable potential for the industry to invest in capital upgrade, major maintenance rebuilds, employee training and the implementation of long term strategic planning of resource security.

Historically our sector has always generated good returns and created employment during such periods of gloom.

EXTRACTIVE & MINING TO MERGE

On December 2, 2008 the Minister for Energy and Resources tabled the Resources Industry Legislation Bill which provided to merge the Extractive Industries Development Act into the Mineral Resources (Sustainable Development) Act.

The bill has been read for a second time, and debate will continue when parliament resumes this year.

When making the second reading speech, Minister Batchelor stated, ‘The bill will modernise and streamline regulation of the extractive industries sector in Victoria.’

He went on to highlight the key changes for the industry which included:

• Codes of Practice for industry
• Partial deregulation of work plans (particularly smaller sites)
• Ongoing community consultation
• No Planning Permit when an EES is gained

The CMPA has raised its concerns on numerous occasions regarding these changes, and particularly the additional costs of community engagement.

There are several changes to the rehabilitation bond process. The first is the extension of liability from a period of six years after the revoking of a Work Authority, to any potential long term damage. The second is the possible requirement to self-assess rehabilitation bonds.

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