Portfolio Media

VICTORIA IN A HOLE ON MINING UNDER BRUMBY

20-September-2010

A report by international research organisation the Fraser Institute has found that Victoria is the worst jurisdiction in Australia when it comes to government policies designed to support mineral exploration.

The Fraser Institute’s 2009-10 survey of mining companies tallied the responses of 670 mining companies across the world to questions on matters such as regulatory duplication and inconsistencies, taxation, native title, security and regulatory uncertainty.

On the composite ‘policy potential index’ Victoria ranks 30th which is the worst performance of any Australian jurisdiction and worse than countries such as Mali and Botswana.

In the report, which quotes what miners are saying about Australia, the president of a mining producer is quoted as saying: ‘Victoria has an extremely poor mines department’ (Source: Fraser Institute Survey of Mining Companies 2009-2010, page 35)

Victoria placed worse than any Australian jurisdiction in a wide range of categories, including policy potential index, current mineral potential, policy/mineral potential, uncertainty concerning the administration, interpretation and enforcement of existing regulations, uncertainty concerning environmental regulations, regulatory duplication and inconsistencies, taxation regime, uncertainty concerning which areas will be protected as wilderness areas or parks, labour regulations/employment agreements, composite policy and mineral potential.

“This report shows that, despite Victoria’s many assets, John Brumby’s poor regulation and stifling bureaucracy is hampering our ability to promote the responsible development of our natural resources,” Shadow Minister for Energy and Resources Michael O’Brien said today.

“The report highlights uncertainty concerning environmental regulations, uncertainty over national parks, native title and administrative inconsistency as areas in which Victoria is well behind the rest of the country.

“Despite Victoria’s positive features including security and political stability, John Brumby’s poor administration of the resources sector has damaged our international reputation.

“The resources sector is booming across Australia but poor management and poor regulation by the Brumby Government is costing Victoria the jobs and investment that could be coming to this state.

“This is a wake-up call for John Brumby to reverse his neglect of the resources sector before further damage is done to our economic prospects and our international reputation,” Mr O’Brien said.