The mining industry said that a new report predicting that the resources boom is about to peak highlights the need to make Australia more competitive in the longer term.
The Deloitte Access Report says unlike diamonds, mining booms are not forever. It says WA would be protected from a global economic downturn because of the construction of projects already underway. And, it describes jobs growth in the state as being as strong as an ox. But, the report predicts investment in new projects will peak in 2014-15.
The state's Treasurer Mr Troy Buswell said that even if that happens, WA will still enjoy a rate of growth of 4%. He added that "Most Australian Premiers would take 4% growth in their economy any day of the week. People in the eastern states wake up every day to news of factory closures and job cuts, like at the Ford factory last week. In WA you wake up to news of new investment opportunities opening up hundreds if not thousands of jobs for people in this state and more broadly around Australia."
The WA Chamber of Commerce's Ms Dana Mason believes the outlook is a lot brighter than the report predicts. She said that "There is a significant amount of investment that will continue to boost the economy for a number of years to come."
Mr Mark McGowan said that the report shows WA needs to be more than just a mining state, and the tourism and manufacturing industries should be nurtured.
The Chamber of Minerals and Energy's Mr Reg Howard Smith says the exploration industry sees some challenges on the horizon as investors look elsewhere. He added that "What we do find is that their long term attention is focused on other places, other jurisdictions, particularly in Africa, and that is a concern."
Mr Howard Smith says the cost of doing business is Australia is becoming far too high. He has called on both the State and Federal Governments to cut what he calls the duplication of green red tape where companies are applying twice for environmental approvals. He added that "In Western Australia, companies do a West Australian Govt approvals process and that's often duplicated by an almost identical process for the Federal Government. That's duplication, that's twice the expense. That micro economic reform, that's an area that we do have to focus on to make sure that in the long term people do invest here."
The report says the mining sector is still driving the country's economic growth and providing a buffer from problems in China and Europe. But, it predicts there will be less demand for minerals in two to three years' time. A report shows Western Australia is by far the best performing state in almost all areas of economic performance. CommSec's quarterly State of the States report assesses eight indicators including economic growth, retail, construction population growth, and Western Australia was at or near the top in all of these bar housing starts.
The research confirms the resources boom is driving WA's economic performance, leaving the rest of the country in its shadow. CommSec's chief economist Craig James says WA's economy is lagging behind in housing.
Source: ABC News
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