Federal Budget lost opportunity for resources sector

11/05/05
The Federal Government's 2005-06 budget is a disappointment for the resources sector, Western Australia's State Development Minister Alan Carpenter said today.
Mr Carpenter said the resources sector had created much of the economic growth that enabled a Budget surplus - yet the industry had received little back in return.
"The Budget is a lost opportunity to boost exploration investment at a time when global demand for our energy and mineral commodities presents us with a great opportunity for growth," the Minister said.
He called for the introduction of a Flow-Through Shares scheme for the resources sector, so that its role as a driver of growth and prosperity could be maintained.
Flow Through Shares offer tax incentives to investors to invest in exploration companies.
"You have to use the good times to invest in the future," Mr Carpenter said.
"The WA resources sector is worth over $26billion a year and it has tremendous opportunities for further growth provided we actively encourage it.
"Western Australia accounts for 30 per cent of Australia's exports - so the State's resources sector is a major contributor to national prosperity and as a State we're punching above our weight.
"But if we are to continue to generate wealth for the nation, the Federal Government should offer more support to the resources sector."
The Minister said the Commonwealth Government should introduce a Flow Through Shares scheme similar to that in Canada.
After its introduction, Canada's share of global mineral exploration increased from 11 per cent in 1997 to 22 per cent in 2003, while Australia's share fell from 17 per cent to 15 per cent.
"The resources sector is one of the main drivers of Australia's wealth and the Commonwealth Government should introduce a Flow Through Shares scheme to support the industry," Mr Carpenter said.
He said he was also disappointed that the Federal Government had not matched the State's commitment for increased funding to improve pre-competitive geoscientific information.
Mr Carpenter said the Gallop Government would continue to put Western Australia first.
Minister's office: 9222 9699