-Wayne Calder of BREE
Earlier this week the Australia Institute said that the key mining sector has received almost $18 billion from the state government over the past six years. This is the first time anyone has tried to put a dollar symbol on the value of the government assistance to boost growth in the mining and energy sector across the nation. The support was mostly done via subsidies, cheap access to infrastructure and concessions. Foreign Minister Julie Bishop has already warned that the country will lead international talks in November about reducing subsidies to the world's oil industry, citing them as distorting energy markets and fuelling wasteful consumption. At the same time, a report showed the mining sector contributed over $121 billion to federal and state governments over the same period.
It is not a question that this sector is vital for the Oz economy. However, the economy has stuck in the transition phase, as investment is falling and projects are turning to the production phase. Nevertheless, the Bureau of Resources and Energy Economics said that shipments of mineral and energy commodities will soar 2.6% in the year to June 2015, totalling $201 billion. This is still an increase, however, it is also a dramatic decline from an expected gain of 11% in the year to June 2014.
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