Melissa Parke (Fremantle, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Resources and Energy and the Minister for Tourism. How is the government managing the pressures of a patchwork economy and spreading the benefits of the booming resources sector? What other options have been put forward and what is the government's response?

Martin Ferguson (Batman, Australian Labor Party, Minister for Resources and Energy) Share this | Link to this | Hansard source

I thank the member for Fremantle for her question. As a representative of Western Australia, she more than most in this House knows we are an economy in transition yet again. This is not a new challenge to Australia. It is no different to the fundamental restructuring of the Australian economy that occurred in the eighties and nineties. On that occasion we tore down the tariff barriers, embraced globalisation, accepted the need to put in place an active labour market and, in doing so, fronted up to the process of workplace change and the all-important question of productivity.

On this occasion we are pretty fortunate as a nation—a nation in transition in need of huge restructuring. We have committed $430 billion in new capital investment. We appreciate that in some instances that is putting pressure on other parts of the Australian economy. My responsibility for tourism is a prime example. So is the issue of change confronting the Illawarra and Hastings areas in terms of the pressure on BlueScope and other manufacturing industries. In that context, there is a responsibility on each and every one of us to act in a positive way to embrace change and to assist those communities through this difficult period.

We should not forget that this is not new to Australia. Ten years ago we would not have thought of Newcastle without a steel industry. In the lead-up to the 2007 election, neither side of politics thought of South Australia without Mitsubishi. The strength of leadership by Premier Rann on that occasion shone a focus on the mining industry, the need for assistance for exploration and the need to chase defence contracts, the responsibility to invest in the services sector, such as the export sectors available in tourism, and education. Those challenges confront places such as Wollongong and Hastings at the moment, and that is why strong leadership is needed to spread the benefits of the current resources boom.

Yes, there is a need for the Australian community to get a greater share of the record profits being earned by the mining industry at the moment, to enable us to reduce company taxation for the sectors being challenged at the moment, to assist small business in writing off the cost of new capital investment and to invest in infrastructure. The alternative is one of negativity from the opposition and a $70 billion black hole. There is also a responsibility in the private sector to work with government to assist the Australian community in this transition.

In that context, I acknowledge that I have been working with the Western Australian government, talking to the major resource and energy companies, who are responsible for the $430 million pipeline of investment in this country, to embrace Australian industry to assist them in improving productivity and increasing Australian content. Today, for example, on the $43 billion Gorgon project, there is $14 billion to Australian companies involved in that project. That is a significant change in attitude not only by the Gorgon investors but also by industry at large in Western Australia.

I also acknowledge the actions of BHP on the South Coast of New South Wales. They will maintain current coal production. They will also work to try to fill those jobs on the South Coast, the 750 coalmining vacancies in Queensland and the 600 vacancies in iron ore in Western Australia. Transition is not easy. It is about strong leadership. It is about time the opposition fronted up to its responsibilities. We must embrace this change and turn it to the benefit of all Australians, not to a select number of Australian companies.