The Chamber of Minerals and Energy of Western Australia (CME) welcomes today’s release of the Mineral Royalty Review Analysis and the commitment by the Government to not increase royalties this year.
In his statement to Parliament, Minister for Mines and Petroleum, Bill Marmion advised there would be no immediate royalty increases for commodities in the 2015/16 Budget and that there will be ongoing consultation with industry regarding the released report and its recommendations.
“CME is pleased the report has been released for further consultation prior to any decisions on possible royalty changes,” said CME Deputy Chief Executive Nicole Roocke.
“While the report recommends royalty increases for certain commodities and decreases for others, the Government’s decision to maintain royalty rates this year will provide some short-term certainty,” said Ms Roocke.
“With the Government ruling out immediate royalty increases, CME will continue to advocate for no royalty increases in the Budget’s forward estimates,” said Ms Roocke.
The economic viability of the sector is more volatile than we have seen in recent history and it is likely any increases in royalty rates would be offset with decreases in the overall number of resource projects, production and investment in WA.
“The responsible and most effective way to increase royalty revenue is to have policies which grow the size of the resources sector. Initiatives which keep the sector strong and prosperous will be welcomed by those Western Australians directly employed in the industry,” said Ms Roocke.
