Barry O'Sullivan (Queensland, National Party) Share this | Link to this | Hansard source

My question is to the Minister for Resources and Northern Australia, Senator Canavan. I note that, over the past five weeks, many of my constituents in Central Queensland have raised with me the importance of maintaining a strong resources sector. So I ask if the minister could update the Senate on the status of the resources sector.

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

I thank Senator O'Sullivan for his question. He is absolutely right about how important our resources sector is, not just for Central Queensland but for our entire nation, and it is good for our nation that our resources sector is in rude health at the moment. It is on track this financial year to produce a record result in terms of exports at $215 billion, thanks to prices being up, and it is 35 per cent higher than the comparable period last year. Included in that result is our sometimes maligned coal sector, which is our second biggest export for our nation—we should always remember that—and it is contributing $55 billion to that result. Indeed, our thermal coal exports themselves are headed for a record year of $37 billion, and this is particularly great news for the 44,000 Australians who rely on the coal sector for their jobs and the 200,000 Australians who rely on their jobs in the mining sector and resources sector more generally. That amounts to, in the coal sector alone, $5.7 billion in wages and salaries every year to Australians, thanks to that industry and thanks to those exports.

But we sometimes take it too much for granted. It has only been really in the last half a century that the mining sector has contributed so strongly to our nation's growth, and that has, not coincidentally, coincided with the development of Asia and the increasing demand for our resources in our region. We now have the opportunity, particularly with India growing very fast, to meet their demand for resources as well, and we have huge opportunities in opening up areas of our country like the Galilee Basin to more coal exports than we have seen in the past, to more jobs and to more exporting income than we have seen. If we open up the Galilee Basin, more than 15,000 direct jobs in mining can be created from six different coalmines in the sector. Just keep in mind that our current coal industry employs 44,000 Australians, so it is an enormous increase in the wealth and opportunity that is created from our coal sector. It is an enormous opportunity for our country, and it is one that we, as a government, are committed to taking.

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

Senator O'Sullivan, a supplementary question.

Barry O'Sullivan (Queensland, National Party) Share this | Link to this | Hansard source

Can the minister outline how all of Australia stands to benefit from a strong resources sector?

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

When our resources sector did develop over those 50 years, it also spurred the creation and establishment of related manufacturing industries, in steel-making and in aluminium smelting. We have all the resources and minerals to do these things. That is why it is so important to continue to have a strong resources sector, to help those value-adding opportunities and the thousands of Australians who work in those industries as well.

I very much welcome the fact that Adani, the company behind the Carmichael coalmine in Central Queensland, have chosen to use Australian steel in their project and have chosen to help sustain the more than 2,000 South Australians who are employed at the Whyalla steelworks. This is how our resources sector spreads its opportunities right around our nation: a coalmine in Central Queensland can help sustain thousands of jobs in South Australia in our steel-making industry. I want to see Australia continue to make steel and continue to have a strong steel-making sector.

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

Senator O'Sullivan, a final supplementary question.

Barry O'Sullivan (Queensland, National Party) Share this | Link to this | Hansard source

This'll be a good 'un! Is the minister aware of any challenges currently facing the sector?

Honourable Senators:

Honourable senators interjecting—

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

Minister, you have the call.

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

It does face challenges, but I want to start by talking about the support our mining sector receives, and the opening up of the Galilee is supported by the Queensland Labor government and supported by eight regional councils and their mayors, representing more than 500,000 North Queenslanders. It is supported by trade unions. Ben Swan from the Australian Workers' Union says:

Our full support and full weight is behind this development if it means regional jobs are created.

It is supported by Peter Lamps, the Australian Workers' Union secretary in South Australia as well, because of those jobs in South Australia. The only question mark for me is: where does the Australian Labor Party, here in Canberra, stand on the development of our resources sector? Do they support steelmaking jobs in Whyalla? Do they support more jobs in North Queensland in our resources sector? That is the challenge facing the project right now. We are waiting for an answer, but there are still just question marks from the other side.