Queensland’s resources sector contributed to the economy well beyond the billions of dollars in royalties and taxes generated for both state and federal governments.
A Queensland Resources Council (QRC) report shows mining and energy companies spent $1 billion more on local goods and services (4 per cent) during 2020-21. The report measures the industry’s commitment to supporting local businesses and supply chains across the regions.
“$27.7B spent locally in 2020-21 means resources companies operating in Queensland are now spending a record 82 per cent of their total procurement budgets in this state, which is a great outcome,” QRC chief executive Ian Macfarlane said in a public statement.
“This means the benefits flow through to everyone, from the companies providing and servicing the big mining machinery to the local food store – providing catering for functions and conferences that a resources company might host.”
Although taxes and royalties from resources companies help governments pay for hospitals, schools and essential services the report highlights the sector’s importance in supporting local jobs and economies – particularly in regional areas.
“Nearly half the total spend on goods and services by our sector was spent outside the greater Brisbane area and provides tremendous flow-on benefits in those communities,” Macfarlane said.
“It has also been very encouraging to see Queensland businesses stepping up to overcome many of the supply chain issues caused by the COVID pandemic to meet the growing demands of resources companies.”
The total economic benefit to Queensland in 2020-21 from the resources and energy sector was $84.3B. The industry supported one in every six jobs, and one of every $5 spent in Queensland can be linked to resources companies.
Macfarlane applauded nearly half of the state’s resources and energy companies for planning to increase spending on local goods and services over the next 12 months.
The state’s coal sector accounted for 70 per cent of total goods and services expenditure during 2021-22. Metals came in at 16 per cent, gas 11 per cent and 3 per cent for all other mining activity.