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Changes to Long Service Leave Scheme Welcomed by Struggling Resources Sector

Queensland’s peak resources sector body says amendments to an industry long service leave scheme which came into effect today will make the system fairer and cut costs.

The Queensland Resources Council has welcomed the Newman government’s changes to the QLeave Building and Construction Industry Long Service Leave Scheme.

QRC Chief Executive Michael Roche said the amendments will redress the disproportional contribution being made by the resources sector to the portable long service leave scheme.

‘The changes will provide significant financial relief to the resources sector in both operational and construction phases at a time when the sector needs to reduce costs to stay in business,’ said Mr Roche.

‘Preparedness to review the QLeave arrangements and make changes to the legislation, reflects an understanding and willingness of the Newman government to boost the competitiveness of the resources sector by tackling unnecessary costs and red tape,’ said Mr Roche

‘Changes to QLeave arrangements are based on the findings of a review commissioned jointly by QLeave and QRC.

‘It revealed the application of the QLeave levy on the resources sector had gone far beyond the original intent of the Act, which was to provide a system of portable long service leave for the highly transient building and construction industry workers.

‘An unintended consequence was for routine mining and gas industry operational activities to be captured by the levy arrangements.

‘Application of the levy to total project costs also meant that the highly capital intensive resources sector projects had been heavily subsidising less capital intensive parts of building and construction.

‘We welcome the changes and congratulate the Premier, Deputy Premier, the Treasurer, the Attorney General and the QLeave Board for taking on board our concerns, particularly in the current economic climate.

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