Why Are Extractive Industries Forgotten by the Controlling Department?
BRUCE MCCLURE CMPA’s General Manager reports on lack of direction from the industries controlling government body.
O N the 30 January 2012 four members of the CMPA attended a Parliamentary Inquiry into greenfields mineral exploration and project development in Victoria which was set up by the Economic Development and Infrastructure Committee from the Victorian Parliament.
A copy of the CMPA presentation to the Committee and a copy of the transcript of the inquiry session when the CMPA members were present are contained on the Parliamentary Website through the following link, http://www.parliament.vic.gov.au/edic
One of the terms of reference set up by Parliament was for the committee to examine Victoria’s mineral endowment across a portfolio of commodities (including energy earth resources and extractives products).
A number of important points have come from this inquiry. You would think that when an inquiry involving the future of Victorian Infrastructure Projects is in progress, that issues like the future supply of extractive industry products to the Melbourne metropolitan and within regional areas would be of concern. The extractive industry is vital for the future growth of Melbourne particularly as a major portion of the typical suburban house is made from a extractive industry supplied product, whether it be the concrete slab, the brick walls , the plaster sheeting, the clay or concrete roofing tiles, the glass in the windows.
Future commercial buildings, schools buildings, shopping centres and all associated infrastructure such as roads, supply of water, sewerage they all require the use of an extractive industry product. The CMPA and other associations have conducted studies that show Melbourne and some regional areas are running out of extractive industry products especially sand and stone in the Melbourne area. This is not because there is no product available in the ground but because of much of the current planning and in some instances restrictive environmental requirements for Melbourne is excluding the possibility of many potential sites being available in the future. This will if allowed to occur, result in major cost increases in the respective infrastructure projects due to increased transport costs, major congestion and environmental issues due to a massive increase in truck movements to provide the products.
Given the above state of play for the extractive industry in the Melbourne Metropolitan area, why is it that the department that looks after the extractive industry in Victoria, the Department of Primary Industries (DPI), did not mention the extractive industry in its presentation to the enquiry on Victorian Infrastructure Projects. A copy of the DPI presentation and inquiry transcript which is also on the Parliamentary Website is quite clear on this point.
Part of the thrust of the inquiry was greenfields site exploration. However, greenfields site exploration is not solely restricted to mining. Mining is an important component of the Victorian economy we do not deny that.
However statistics supplied by DPI show that the extractive industry is as big if not bigger than the mining industry based on tonnage figures if you exclude the production of coal in Victoria (68.8 million tonnes) which is mainly used for power generation. In 2009 – 2010 approximately 0.96 million tonnes were produced in the mining sector (this amount excludes coal and 7.5 tonnes of gold) and produced a value of $502.5 million (excluding the revenue raised from coal but including the revenue raised from gold of $300.1 million).
In the same period a total of 46.1 million tonnes of extractive products were produced and generated a sales value of $652.7 million.
Why is it the case then that the extractive industries seem to be treated differently when it comes to the discussion of needs, improvements etc for the industry. The CMPA has been advising both politicians and government departments for a number of years about the state of the extractive industry and the areas of concern that will have repercussions on the financial future of this state. The CMPA has always been very proactive in this area. We have never denied the need for strong planning legislation and balanced regulations. We have supported initiatives that we see are beneficial for all and in the majority of instances where the CMPA has had a concern we have also offered possible solutions.
It is time for the extractive industry to be afforded the same treatment and respect that other industries enjoy in Victoria. This state simply cannot progress without us.
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