Where to, for the Resources Industry?

Australia leads the world in many aspects of this industry, the cornerstone of this country’s wealth generation.  However it seems the focus, when talking about the Resources industry, would suggest that we are still seen in the light of pillagers and exploiters with huge profits going overseas.   The political debate surrounding the Carbon Tax seems to be enhancing and promoting this view for the sake of political expediency despite the huge contribution the industry is making to the development, employment opportunities, financial sustainability and growth of this country.

The Resources industry is an integral part of the social, economic and environmental fabric of this country. As an industry we have much to offer; we understand long term planning in a way that few others have to contemplate. Perhaps the only real parallel is the Defence industry with their long lead times on the purchase and maintenance of capital equipment. Five to 30 year strategies are the norm for our respective industries. A far cry from the three to four year time frame of our political masters, whose long term view is the next election and in many cases the next opinion poll.

A trigger point
Few of us in the nation are seriously planning for the depletion of wealth generation through the run down in reserves or declining commodity prices in the Resources industry. Most of us are living in the moment and enjoying what Australia offers us today.

But how will we maintain our current standard of living and its associated expensive social welfare system well into the future? What replaces the current wealth generating industries?  What provides our grandchildren similar opportunities to the ones we enjoy?

A possible way forward
We are amongst the best in the world at mining. Our experience, methods, technology, products and people are world class. I find it quite extraordinary that there is not a clamour from our political leaders demanding that current profits from the industry be invested in a Centre of Excellence encompassing all aspects of the Resources industry.

There are many claims that we have lost our manufacturing industry – surely what we have lost is the conversion of our manufacturing base to the production of equipment and products that are relevant to today's world and reflect our IP. The export of Technology and equipment associated with an industry which has a global reputation is a logical and sustainable path to future wealth creation. A manufacturing base, focussed on the Resources industry and products in which we are world class, seems to me to be a very sensible long term investment for the government. It would seek to capitalise on our existing but largely globally uncompetitive vehicle manufacturing base where there's a plethora of engineering skills and an experienced work force with readily transferable skills.

A place to base the start
The establishment of a Centre of Excellence at Fishermans Bend, Melbourne, or in the North West of Western Australia, at Dampier or Karratha, would seem to be worthy of consideration. Dampier and Karratha have appeal because they are towns adjacent to major mining operations.  Fishermans Bend has appeal because it can draw on a large population base complete with infrastructure, universities, rail, port, airline hub; all activities that are integrally involved in the Resources industry.

The major hurdle an idea like this faces is parochial states and vested interests that thrust self interest in front of the national interest.

This may be the future path to a long term, strong, sustainable economy and society which is educated, wealthy and wise.  Otherwise, Australia may see itself falling rapidly behind other nations within the Asia-Pacific region in this vital sector, when the resources either run out or there is no longer high demand.

 By John Murray