According to an economic analysis produced for the billionaire's own company, Mr Clive Palmer's AUD 8.8 billion Queensland coal project will cost the jobs of 4500 manufacturing and agriculture workers in the state by driving the dollar higher and forcing up wages and business costs.
The analysis by an independent consultancy documents the negative side effects of Mr Palmer's China First project that may generate 6000 jobs during construction of the mine and its infrastructure and boost coal exports by 40 million tonnes and AUD 4.6 billion a year.
The report said that the project, 400 kilometers inland from Gladstone, will cause a considerable decline in manufacturing because the extra coal exports from July 2013 will put upward pressure on the exchange rate. It will also consume 55,000 hectares of farm land used for grazing in the mine catchment area. Most of the job losses will occur over the next six years.
Modeling produced by the consultancy AEC group said that the project will cause the loss of 2215 manufacturing jobs in Queensland alone between 2013 and June 2018, and a further 1666 jobs over the next 18 years. Agriculture will also lose about 450 jobs. These job losses will be extended around the country given that they are mainly driven by the higher exchange rate.
The report said that "Overall manufacturing output is estimated to decline in Queensland relative to what would be achieved if the project does not proceed."
The Australia Institute's executive director Mr Richard Denniss, who has lodged a submission on the project to the state government, said that Australia needed to take into account the broader impact of these projects. He added that if the community was calling for a cost benefit analysis of the National Broadband Network then one was also needed for the massive expansion of the mining industry.
A spokesman for the Department of Economic Development said it was up to individual companies to decide how much information they needed to provide. He added that "Proponents are at liberty to go to varying degrees of detail in describing these impacts, both positive and negative, and Waratah's (Mr Palmer's company) description was one of the most detailed received to date, and Waratah called it an economic impact statement."
Dr Denniss said the analysis confirmed that the effects of the two speed economy were harmful for people and businesses not directly tied to the mining industry.
The analysis showed that small and medium sized businesses would be hit with higher bills for wages and rent. Housing affordability would decline for those who were not employed in the new mine, and wealth would become less evenly distributed.
The report's findings contrast with the euphoric statements by Queensland Premier Ms Anna Bligh about the benefits of the project to the state. She described it recently as a big leap forward for Queensland's economy.
Ms Bligh said that "The Galilee Basin is a very rich coal seam. If it can be developed appropriately, then it means jobs, prosperity and growth, and a very bright future for our state."
(Sourced from www.theaustralian.com.au)
