The Minerals Council of Australia (MCA) has released a report urging greater capital investment in new technologies and projects for the domestic resources industries to drive wages growth and a stronger economy.
MCA’s Economic Series 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.
MCA Chief Executive Officer, Tania Constable, said economic growth has slumped since the last mining investment boom.
“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.”
Ms Constable said remaining internationally competitive would further much-needed investment in domestic economic growth.
“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,” she 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.
“Policies that improve productivity and competitiveness and attract investment, are integral to Australia maintaining its comparative advantage in mining and minerals exports, and expanding minerals processing and mining-related manufacturing, which will ultimately benefit all businesses, households and workers.”
To learn more read the MCA’s Economic Series Report, available here.
