Mining industry support for regional business

FAIRER payment terms for North Queensland mining support businesses is among the terms of reference for a new inquiry recently launched by a parliamentary committee. The Standing Committee on Innovation, Industry, Science and Resources Committee is conducting an inquiry into how the mining sector can support businesses in regional economies.The inquiry will consider the appropriateness of payment terms being offered to regional businesses and how businesses in regional economies can benefit from the development of the mining sector. If businesses fear being blacklisted for complaining about big mining company payment terms, they can make a confidential submission simply by marking it as confidential.The economic benefits of the mining industry were not limited solely to the ‘big miners’. In any mining area there will also be a raft of businesses providing the mining operation with necessary goods, services, and logistics support. Ensuring that there is a close connection between where wealth is extracted and where it is spent is vital for regional economies.The Committee will also look at a range of other issues that affect landholders and businesses in mining regions, including royalty terms offered by mining businesses, barriers to involvement in mining industry procurement processes, and opportunities for suppliers to diversify into other locations and industries.The inquiry’s terms of reference include:

• The appropriateness of the payment terms offered to businesses by the mining sector;
• Best practices between the mining sector and businesses, especially in regards to how they can support regional communities and economies;
• Barriers to the greater use of regional businesses in the procurement of services by the mining sector;
• Building the skills and expertise of businesses to leverage opportunities in the mining sector;
• Opportunities for businesses to diversify to other markets; including the mining industry in Australia and overseas, and across different industries;
• The role of mining equipment, technology and services ( METS) organisations in R&D and innovation and how payment terms impact on companies' ability to invest in these areas;
• How the Federal Government can support businesses in regional economies benefit from mining development;
• How royalties are shared between landholders on gas fields and State and Territory Governments; and
• Any other related matter.

When undertaking this Inquiry the Committee will have regard to:

• How relationships between mining and businesses differ between jurisdictions and in overseas countries; and
• The policies of State and Territory Governments in regards to mining procurement.

Submissions close on Friday, 10 August 2018 and can be made through the Committee’s website: https://www.aph.gov.au/Parliamentary_Business/Committees/House/Industry_Innovation_Science_and_Resources/MiningSector