Clamping down on councils targeting resources companies with unjustified rate hikes, directing publicly owned utilities to prioritise state development and supporting energy-intensive operations facing rising electricity costs are among the key recommendations contained in the 2027-28 WA Pre-Budget Submission (PBS) released by the Chamber of Minerals and Energy WA (CME) today.
The PBS also calls on the WA Government to alleviate costs and delays in Aboriginal cultural heritage processes by fully funding its response to the Kelly Review and to launch a comprehensive study to pinpoint remaining blockages in the project approvals system.
CME Chief Executive Officer Aaron Morey said the PBS contained more than 120 recommendations designed to bolster Western Australia’s ability to attract resources investment in an increasingly competitive global environment.
It comes in the wake of CME’s landmark Unearthing Potential report, which found WA was sitting on more than $8 trillion in known mineral and energy resources spanning 27 commodities.
“Our resources represent generations of opportunity and trillions of dollars in wages, royalties and taxes – but they’re no good to anyone if they’re left buried beneath our feet,” Mr Morey said.
“We already have the geology, trading relationships and expertise and the world’s appetite for our minerals and energy is as strong as ever. The only piece in question is our hunger to compete for the capital required to unlock our potential.
“The PBS is CME’s blueprint to improve WA’s investment fundamentals and set the State up for decades of future success.”
CME has identified five priority recommendations for the WA Government:
- Lift the hood on approvals
Run a study that tracks every step of WA’s approval processes from start to finish, including the lead agency framework, so government can identify the hold-ups – on both the industry and agency sides — and cut unnecessary duplication.
- Protect industry from steep power rises
Support existing energy-intensive businesses facing sharp increases in costs on the South West grid to protect jobs, while incentivising new generation capacity to bring down prices in the medium-term.
- Strengthen accountability and transparency around council rates
Develop best practice guidance to help local governments demonstrate greater accountability and transparency during their budgeting processes, including in the setting of rates and large capital works.
- Fully fund the Kelly Review response
Fully fund the response to the Kelly Review, prioritising additional, dedicated staffing for relevant regulators, capacity building for First Nations representative bodies and developing standards for heritage surveys and consultants.
- Strengthen whole-of-government alignment to drive economic growth
Reinforces the importance of state development objectives to WA Government Trading Enterprises that deliver enabling economic infrastructure to support the timely and efficient achievement of WA Government priorities.
“Resources companies are significant contributors to their local communities and happy to pay their fair share but they are not a blank check for irresponsible or unsustainable councils,” Mr Morey said.
“All ratepayers deserve to see how their bill has been calculated and have a meaningful say in how their money is spent.
“CME also strongly supports the Local Government Minister’s call for councils to consider amalgamations that produce efficiencies in staffing, infrastructure and service delivery.”
Mr Morey said a study following projects from application to decision would identify where the clock was being chewed and where both industry and government agencies needed to improve.
“Every unnecessary month a project spends in the assessment process is a month WA goes without new jobs, investment and royalties,” Mr Morey said.
“We already know cultural heritage assessments are a major bottleneck. Ensuring the Government’s response to the Kelly Review is fully funded means giving both First Nations organisations and regulators the people, tools and clear standards they need to protect heritage while supporting timely decisions.”
Industrial electricity costs on the South West Interconnected System (SWIS), which services the majority of WA’s critical minerals production as well as substantial gold production, have risen by around 80 per cent since 2020.
“Power bills are becoming an existential threat for some SWIS-connected resources operations and without targeted support and measures to bring down costs they risk going from exporting minerals to exporting jobs,” Mr Morey said.
“The energy transition offers immense opportunity for our State but steps need to be taken quickly to bring on the generation needed to place downward pressure on power bills.”
Mr Morey added it was critical that government trading enterprises prioritised state development over short-term commercial outcomes.
“A publicly owned utility can post a bigger profit while leaving WA poorer if its charges price the next major project out of the State,” Mr Morey said.
“Success should be measured in the industries and jobs these businesses help create, not just the dividends they deliver.”
Media contacts:
Josh Zimmerman j.zimmerman@cmewa.com / 0404 947 719
Natasha Mutch n.mutch@cmewa.com / 0435 383 382