The Minerals Council of Australia (MCA) has released a report calling for greater business investment in new technologies and projects.
MCA Chief Executive Officer, Tania Constable, said the MCA’s Economic Series Report demonstrated the need for investment growth.
“The last decade has seen Australia going from one of the best performing OECD countries for private sector capital investment to one of the poorest performing and labour productivity growth falling 2.5 percentage points,” Ms Constable said.
“Since the end of the last mining investment boom, growth in the economy’s real net capital stock substantially slowed and it is now growing at its lowest rate in 60 years.
“Unless this is turned around, Australia is at risk of experiencing continued weakness in business investment, which in turn will further weaken the contribution from our stock of capital to productivity growth.”
To attract capital investment, the report highlights the need for economic reforms that deliver internationally competitive tax settings; expanded trade and investment opportunities; efficient and effective regulatory settings; practical and beneficial workplace relations rules; an efficient transformation to net zero emissions; and, industry-focused skills and training programs.
“The minerals industry has demonstrated its ability to be a major contributor to Australia’s private sector capital investment and productivity growth owing to the expansion of mining that began in the 2000s,” Ms Constable said.
“The industry can again make a substantial contribution to lifting productivity if policy settings make Australia a competitive destination for large-scale investment in mining and minerals processing projects.
“A one per cent lift in productivity by 2030 would deliver a $200 billion boost to the Australian economy, 9.4 per cent increase in real wages and Australian families $11,700 better.”
