The Queensland Resources Council has launched a report of the economic contribution that resources makes to Queensland federal electorates which shows that Brisbane is the largest beneficiary of the sector.
The QRC’s sixth annual economic contribution report reveals that Queensland minerals and energy companies directly contributed $7.8 billion to the economy of the federal electorate of Brisbane in 2014-15.
The new report shows spending on wages and salaries and goods and services confirmed the Brisbane electorate was still the biggest mining federal electorate in Queensland by a large margin, ahead of the seat of Flynn ($4.8 billion) based around Gladstone.
The Queensland resources sector directly injected $32 billion into the state economy in 2014-15 including wages, goods and services, state and local taxes and contributions to almost 1000 community organisations.
Resources companies purchased goods and services from over 24,000 Queensland businesses, creating an estimated total value-add worth $64.8 billion and 366,000 full-time direct and indirect jobs around the state while only using 0.1% of Queensland’s land mass.
Despite the current downturn in commodity prices, Queensland’s diversified minerals and energy sector continues to be responsible directly and indirectly for one in every five dollars in the state’s economy and one in every six jobs.
“This may come as a surprise to some people around Queensland but the money trail in the analysis of federal electorates can’t be denied with direct spending from resources in the electorate of Brisbane greater than that of any other Queensland federal electorate by a significant margin,” said QRC Chief Executive Michael Roche.
“Independent economic analysis by Lawrence Consulting has calculated that spending from resources directly created 1809 full time jobs in the Brisbane electorate. Despite a slump in commodity prices and the ‘disrupt and delay’ tactics of activist groups, the Queensland resources sector continues to be the lynchpin of the state economy as a generator of jobs, exports, spending and government revenues.”
The analysis of federal electorates shows that as well as paying $333 million in wages to Brisbane workers, minerals and energy companies with Queensland operations directly purchased $7.4 billion in goods and services from 2601 businesses in the Brisbane electorate.
Brisbane and Flynn’s total direct spend was significantly greater than that of the next highest electorate of Dawson around Mackay ($2.6b). Completing the top five federal electorates benefitting from resources in Queensland were Griffith in suburban Brisbane ($2.5b) and Capricornia around Rockhampton ($2.2b).
All 30 federal electorates were recipients of significant local expenditure from the resources sector ranging from $50 million up to $7.7 billion.
Other highlights from the report were:
- The electorate of Dawson had the highest number of local businesses – with 4,535 directly supplying the resources sector
- The seat of Flynn wasn’t far behind, supporting 3183 local businesses
- Capricornia had the highest number of residing employees with almost 6,422 direct employees living locally
- Maranoa received a direct benefit of $982 million to its local economy, supporting 1180 local businesses and directly employing 973 full time workers.