Who's Afraid of the GFC?

22-Jun-2010

Who’s afraid of the GFC?

31st May 2010

Australian Bureau of Statistics data have confirmed that employment in Queensland’s mining sector increased during the worst of the global economic downturn in 2008-09.

Official federal government figures reveal that between August 2008 and May 2009, direct mining employment in Queensland rose from 38,000 to 47,000, defying global and domestic trends.

‘In contrast to recent claims surrounding the federal government’s super tax on the resources sector, it is clear that Queensland mining companies played a vital role in insulating the state from the worst of the global recession,’ Queensland Resources Council Chief Executive Michael Roche said today.

‘This Queensland data contradicts claims that the mining industry cut jobs during the global financial crisis and did not contribute significantly to Australia’s economic recovery.

‘Certainly, there were some project-specific job losses as global credit contracted but the ABS data show that these people quickly found other jobs and resource companies continued hiring people at the bottom of the recession by expanding into markets such as China and India.

‘This data is another compelling reason why QRC members think it essential to keep the facts front and centre in the debate over the super tax proposed by the federal government.’

Mr Roche said another important ABS indicator of the mining industry’s economic contribution during the GFC was the value of goods and services produced in 2008-09.

‘Mining increased its economic value to Queensland by more than 25 per cent with daylight between it and the next best-performing sector, transport and warehousing.

‘The average growth across all industries in Queensland during 2008-09 was single digit, reinforcing the essential role that a healthy resources sector plays in underpinning the Queensland economy.

‘Both state and federal Governments benefited from the strength of the resources sector in the face of the GFC, with Queensland resource companies contributing nearly $8 billion in royalties and corporate income tax in 2008-09,' Mr Roche said.

Source- Qld Resources Council website

Media contact: Jim Devine (07) 3295 9560

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