Queensland minerals and energy companies contributed almost $38 billion to the Brisbane region’s economy last financial year according to data released late last week by the Queensland Resources Council.
The analysis by postcode of corporate spending on wages and salaries and goods and services confirmed the Brisbane region was by a large margin the major beneficiary of resources sector activity in 2013-14.
‘This may come as a surprise to some in south-east Queensland but the money trail can’t be denied with direct and indirect spending representing 26 percent of the Brisbane region’s gross regional product,’ said QRC Chief Executive Michael Roche.
Minerals and energy companies with operations across the state paid $1.3 billion in wages to more than 9,600 full-time employees residing in Brisbane. In addition, they purchased $15.6 billion in goods and services from more than 6,500 Brisbane companies. The Brisbane region’s direct spend of almost $17 billion was well ahead of the next highest in Fitzroy ($6.8b) and Mackay ($4.2b).
‘Independent economic analysis by Lawrence Consulting has calculated this direct and indirect spending supported more than 197,000 jobs in the Brisbane region,’ Mr Roche said.
‘This confirms the size of the investment that all Queenslanders have in a flourishing minerals and energy sector, regardless of where they live in the state,’ Mr Roche said.
‘Statewide, resources companies paid $2.5 billion in royalties to the state government in 2013-14, used to pay for essential services such as schools, hospitals and roads.
‘However, the broader contribution to jobs and economic activity across the state is where the sector shows its mettle as one of the state’s economic pillars,’ Mr Roche said.
Statewide, the Queensland resources sector directly injected $37.5 billion into the economy in 2013-14 including wages, goods and services and community contributions. Goods and services were purchased from 17,000 Queensland businesses, creating an estimated total value-add worth $77.6 billion and 442,000 jobs.
‘What these results say clearly is that despite the current downturn in coal prices, Queensland’s diversified minerals and energy sector continues to be responsible directly and indirectly for one in every four dollars in the state’s economy and one in every five jobs,’ Mr Roche said.