Background
This report has been commissioned by the Queensland Resources Council (QRC). The QRC collected and collated data on expenditure from its full-member companies (approximately $25 billion in 2009/2010), and then engaged the research team to analyse the data and generate this report. The modelling and analysis that underpin the results in this report have been performed by the research team, and reflect the knowledge, expertise and experience of the researchers involved in preparing this report. The primary data collected by the QRC and the modelling data generated by the research team will underpin the www.queenslandeconomy.com.au website that has been developed by the QRC. The research team also completed 14 case studies of everyday Queenslanders describing what their state’s minerals and energy resources mean to them.
Introduction
This report provides a detailed summary of the level of expenditure into the Queensland economy by the resources sector in 2009-10 and the multiplier and consumption effects that are generated by that initial stimulus. While the resources sector makes a significant contribution to the Queensland and Australian economies, information about the impacts of the sector on regional and metropolitan economies within Queensland is limited.
Impacts on regional and metropolitan areas of Queensland occur through direct, indirect and final consumption effects. There are two key types of direct impacts:
- Wages for direct employment of workforce
- Expenditure on business services in local and regional economies
Business expenditure generates both upstream and downstream ripple effects through the business supply chain as local businesses purchase goods and services from other businesses, often through several links in the supply chain. The net effect of subsequent rounds of economic activity in the business supply chain can be categorised as indirect effects. The increased employment that is generated through the direct effects (resources sector employment) and the indirect effects (business supply chain) generates a number of final consumption effects to support the increased population base.
The focus of the research outlined in this report is to identify the geographical spread of impacts from the resources sector across Queensland.
The process was initiated in July 2010 when the QRC asked its full member companies to disclose how much they spent in 2009-10 on:
- Goods and services
- employee salaries and wages (by place of residence)
- voluntary community contributions.
The data was supplied by Australian postcodes and includes both operating expenditure (opex) and capital expenditure (capex).
The companies that contributed to this database can be found at Table 4.1. The QRC estimates that the projects of these Queensland operating company’s represent around 95 per cent of the current and expected total value of production of the Queensland’s resources sector.
The postcode spend data was then aggregated and the economic impacts (indirect and consumption impacts) of the resources sector were analysed at three geographic scales:
- State (the whole area of Queensland).
- Regional (represented by 13 Statistical Divisions in Queensland)
- Local (represented by 74 Local Government Areas in Queensland)
Project Team
- John Rolfe, CQUniversity
- Reuben Lawrence, Lawrence Consulting
- Daniel Gregg, CQUniversity
- Fleur Morrish, CQUniversity
- Galina Ivanova, CQUniversity
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Funding Partner:
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Participating Members:
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