The West Australian reported that the head of the world's biggest miner BHP Billiton has weighed into the debate over Eastern States workers being reluctant to move west, saying labor mobility was the biggest challenge it's got.

Speaking at the WestBusiness Leadership Matters breakfast in Perth, BHPB CEO Mr Marius Kloppers said people were simply not willing enough to move to WA and Queensland. He added that "I think we've got to work on that."

Mr Kloppers' comments came in the wake of calls by State Treasurer Christian Porter for dole recipients in the east to have their dole payments cut to encourage them to move to WA.

It also follows the controversy surrounding Ms Gina Rinehart's plan to use foreign workers for the Roy Hill iron ore development.

Mr Kloppers said anecdotally his experience was that Australians were less likely to move far from home for work than Canadians or Americans.

Meanwhile he said a combination of external factors, such as the exchange rate as well policies like the Federal Government's carbon tax had moved Australia from a fairly low cost environment to a higher cost environment.

He said Australia needed to understand that every decision we take on royalties, taxes, flexibility and productivity of labor impacts that competitiveness and will affect future investment flows. He added that "We often think there is one silver bullet that is going to change the overall course of competitiveness. The reality is it is a mosaic."

Mr Kloppers also struck a cautious note on the state of the global economy, saying no one can ever be certain what will unfold. He added that "As we look to our current environment what we do know is that in the absence of a sustainable solution to the European debt crisis, global uncertainty will remain and therefore will continue to have an effect on the demand for resources in the short term."

Source - The West Australian

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