The Chamber of Minerals and Energy of Western Australia (CME) welcomes the State Government’s commitment to industry consultation and CME's participation in the Industry Reference Group as part of the review of Western Australia’s mineral royalty system.
The economic contribution of the Western Australia resources sector has never been more vital to the state’s economy with the State Government’s 2013-14 Budget revealing total mining royalty payments will reach $5.8 billion.
“Royalty income from the sector now accounts for 21 per cent of government revenue up from only 5 per cent in 2003-04,” said CME Chief Executive, Reg Howard-Smith.
“CME has always believed a state-based royalty regime is best placed to ensure revenue and infrastructure investment is returned to the communities from where our mineral wealth is extracted,” said Mr Howard-Smith.
“The Western Australian resources sector has brought long term economic benefits to Australia and in order for that to continue, we must remain internationally competitive,” said Mr Howard-Smith.
CME will provide a strong industry voice to the Industry Reference Group which will also consist of senior representatives from both the Department of State Development and Department of Mines and Petroleum.
CME notes the review aims to ensure any reforms or adjustments are workable and achieve their aims without unintended consequences.
CME believes a blanket tax across all commodities is inappropriate and any changes must factor in the different processing and refining costs borne by different commodities. The wider context of other taxes, rates and levies imposed other cost pressures currently imposed on the industry also need to be factored into any decision to change royalty rates.
“CME looks forward to working with the State Government to ensure that industry’s views are taken into account and that Western Australia's resources sector remains internationally competitive, ensuring the continuing wealth of our state and the national economy"' said Mr Howard-Smith.
