Australia's big holes
We have a lot of giant holes across Australia where large mining companies dig up our resources and send them off overseas. These companies make mega profits and there is a sense across Australia that they are taking what belongs to Australia, not adding much value and leaving us in the future with large worthless holes. This applies also to the gas companies who sell gas at a price overseas that is less than they sell to us for local consumption.
A previous Labor federal government tried to implement a mining tax on the large miners excessive profits but failed miserably and the conservative government were elected and removed the tax. A Western Australian politician who did much for regional (rural) Australia recently lost his seat as he had proposed lifting the levy per tonne charged to the mining companies. A sad loss.
These mining and gas companies pay royalties to the state governments where the mines and gas wells exist but there is a groundswell that they should pay more. The time of their infrastructure building, the mining boom, is over and the companies now just mine and export. This has left the Australian economy with a big revenue hole (another hole) and a lot of people unemployed. The state governments across Australia, particularly Western Australia, did not put funds aside from the boom for the time when it was over.
The iron ore price plummeted in recent years and governments groaned as their revenues decreased drastically. Currently this price has recovered somewhat but with the Sword of Damacles dangling as we expect another price downturn. China our major iron ore buyer coughs and we catch the cold.
The current conservative federal government is facing a crisis with the lack of gas to ensure steady electricity supply along the east coast at a reasonable price. They have moved to right this and we wait with high expectations that the gas suppliers who are taking our resources will come to the party and ensure that we have sufficient local supply to guarantee electricity security.
Luckily we remain a place for educating international students and a place that is very innovative in areas like medical breakthroughs. We also have a housing shortage and new home starts create employment and help fire up the economy. On another downside consumers are taking a spending holiday and the retailers are suffering.
We cannot afford to sit by and watch our resources being dug up and sold overseas without much value being added. Who would be in government to solve this one.
The Adani coal mine mooted for Queensland could well be an environmental disaster. I hope the Queensland government has done its due diligence in respect of the environment.
May the Force be with us!
GD
A previous Labor federal government tried to implement a mining tax on the large miners excessive profits but failed miserably and the conservative government were elected and removed the tax. A Western Australian politician who did much for regional (rural) Australia recently lost his seat as he had proposed lifting the levy per tonne charged to the mining companies. A sad loss.
These mining and gas companies pay royalties to the state governments where the mines and gas wells exist but there is a groundswell that they should pay more. The time of their infrastructure building, the mining boom, is over and the companies now just mine and export. This has left the Australian economy with a big revenue hole (another hole) and a lot of people unemployed. The state governments across Australia, particularly Western Australia, did not put funds aside from the boom for the time when it was over.
The iron ore price plummeted in recent years and governments groaned as their revenues decreased drastically. Currently this price has recovered somewhat but with the Sword of Damacles dangling as we expect another price downturn. China our major iron ore buyer coughs and we catch the cold.
The current conservative federal government is facing a crisis with the lack of gas to ensure steady electricity supply along the east coast at a reasonable price. They have moved to right this and we wait with high expectations that the gas suppliers who are taking our resources will come to the party and ensure that we have sufficient local supply to guarantee electricity security.
Luckily we remain a place for educating international students and a place that is very innovative in areas like medical breakthroughs. We also have a housing shortage and new home starts create employment and help fire up the economy. On another downside consumers are taking a spending holiday and the retailers are suffering.
We cannot afford to sit by and watch our resources being dug up and sold overseas without much value being added. Who would be in government to solve this one.
The Adani coal mine mooted for Queensland could well be an environmental disaster. I hope the Queensland government has done its due diligence in respect of the environment.
May the Force be with us!
GD
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