Linda Reynolds (WA, Liberal Party) Share this | Link to this | Hansard source

As a senator for the great state of Western Australia, my question is to the Minister for Resources and Northern Australia, Senator Canavan. Can the minister please update the Senate on the relative strength of Australia's resource sector?

Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Link to this | Hansard source

I thank Senator Reynolds for her question and do recognise the great contribution that Western Australia makes to this nation and her passion and support for the strength of the mining sector within Western Australia.

Yesterday, the Minerals Councils of Australia released a Deloitte report on the size of the mining sector in this country. Typically we quote the size of the mining sector in terms of how many people are directly employed at a mine or resource business, but there is, of course, also a business ecosystem surrounding the mining sector—the mining equipment and technology services sector—which does not always get captured in the results. But Deloitte has done some groundbreaking work using RBA methodology on input-output tables to show that in fact 1.1 million Australians owe their employment to the mining sector, and that accounts for about one in 10 jobs in Australia resulting from the mining sector itself. That shows that overall the mining sector accounts for about 15 per cent of GDP in Australia as well. It is a big, big contributor to our nation's wealth and employment, and so many Australians know and understand that their wealth comes from this sector.

It is even more important in some individual regional areas. As I know Senator Reynolds would know, 88 per cent of the economy in the Pilbara, according to this report, is based on the wealth from our resources sector. In my part of the world, the Balonne-Surat area where I live, 63 per cent of our economy relies on the mining sector as well, and in the Hunter region 34 per cent relies on the mining sector. I would imagine if Deloitte had done this work 100 or so years ago the Hunter proportion would have been even higher. The mining sector is often the pioneer in terms of our economic development. It often goes to parts of our country that are not developed, that do not have industry, develops those, and then more diverse businesses come in after that like they have in the Hunter region. Our mining sector remains strong. It is an incredibly strong contributor to our nation. (Time expired)

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Reynolds, a supplementary question.

Linda Reynolds (WA, Liberal Party) Share this | Link to this | Hansard source

I thank the minister for that answer. In light of his answer, can he also outline what challenges are now facing the resources sector, especially in relation to affordable energy and reliable energy sources?

Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Link to this | Hansard source

The report also does point out that our mining sector is a large user of energy and relies on affordable energy supplies to continue. We often think of our mining sector in terms of the export revenues it provides, and we export, say, 90 per cent of our coal at the moment, but, of course, that 10 per cent we keep here helps keeps the lights on, helps keep affordable power for businesses around our country, and we should recognise the importance of that as well. Those states in our nation that turn their back on resources like coal pay the consequences of doing so. Because South Australia decided not to have black rocks, they got blackouts. Those blackouts have cost the South Australian economy $367 million. We learnt today that they could have saved all this if they had spent $25 million to keep the lights on and keep the coal-fired power stations going, but that is what you get with a Labor government. You get the lights going out and you get the budgets blowing out.

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Reynolds, a final supplementary question.

Linda Reynolds (WA, Liberal Party) Share this | Link to this | Hansard source

Can the minister also advise the Senate of alternative policies that are putting at risk the future not only of our thriving resources sector but also of our manufacturing sector?

Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Link to this | Hansard source

According to some in this place, the South Australian policies have been so successful, they have worked so well, that the Labor-Greens alliance in this place wants to bring them to Canberra as well. Let's bring what Adelaide has done, let's shut all our coal-fired power stations down, let's have a 50 per cent renewable energy target. That is what the Labor and Greens parties want to bring federally as well. They want to shut all those coal-fired power stations down, and that would put at risk all of our energy security around this country and put jobs at risk too. But, as I suggested the other day, there is hope, because even one in six Greens voters support the Australian government funding a coal-fired power station.

Eric Abetz (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Which one?

Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Link to this | Hansard source

There are 10 Greens senators, Senator Abetz, so at least one of them, by the law of averages—maybe two—supports a coal-fired power station. I did identify Senator Rhiannon the other day, but I think I have found her partner, because Bob Brown also supports coal-fired power. Bob Brown said in the 1980s that coal was the best option, so there is still hope yet for the Greens in this country. (Time expired)