A state infrastructure plan will help Western Australia come to grips with the big development issues.
A state infrastructure plan will help Western Australia come to grips with the big development issues.
Western Australia needs to plan and deliver the infrastructure that supports business and the growth of the state overall to harness the long-term benefits of the strong resources sector.
This will secure returns to the community directly through jobs and indirectly through taxation and from royalties regimes in the form of new schools, hospitals and roads,
Roads, rail, ports, water, aviation, electricity and gas networks are just as important to the success of a resources project as a good ore deposit.
In a pre-budget submission to the state government, the Chamber of Minerals and Energy again pushed the need for a strategic infrastructure plan for WA.
The government is pursuing a number of infrastructure planning and investment initiatives. The Regional Freight Network Plan, the WA Ports Review and the State Aviation Strategy are examples of how this approach to infrastructure planning could benefit by having a common overarching purpose.
This is a risk because infrastructure problems are notoriously complex and require holistic solutions – particularly for a fast-growing resources province like WA.
CME sees the need for a state infrastructure plan to draw all these initiatives together under the banner of a consistent vision for social and economic development.
The plan does not need to be a prescriptive schedule of projects, costs and timing but set out clear goals, including the development of diversity in the WA economy to complement the growth of the resources sector and the associated infrastructure requirements of a rapidly growing population.
It would outline the government’s view about the appropriate mix of public and private investment in infrastructure and clarify regulatory and approvals processes relevant to infrastructure planning and delivery.
Importantly, it would also serve as a platform for discussions with the federal government about GST redistribution and infrastructure spending. The resources industry has long-called for a more equitable distribution of the GST and, importantly, an immediate need to redesign the complex formulas that move money away from places where economic activity is most viable.
There has been considerable focus on the fly-in, fly-out workforce. Viewing FIFO through an ‘infrastructure’ lens provides an example of the multi-faceted nature of infrastructure challenges and the need for this comprehensive approach to planning and investment.
In 2011 the resource sector’s workforce in WA was estimated to be 101,100, with approximately 50 per cent employed on FIFO rosters.
By 2015, the sector will employ about 110,000 people, with an estimated 63,500 (or 57 per cent) of that workforce employed on FIFO arrangements.
This obviously places increasing demands on the state’s aviation sector and supporting infrastructure.
Many of these people on FIFO rosters choose to live in the Perth metropolitan area; Perth Airport is a central hub for this activity and it is critical that the associated infrastructure can accommodate this growth.
Delivering the Gateway WA project and improving the transport linkages into the airport must therefore be a high priority for the state and federal governments.
The re-development plans announced by Perth Airport Corporation are also critical. Airspace congestion is also becoming an issue and the resources sector has been working closely with airlines, Airservices Australia and Perth Airport on initiatives to better manage air traffic.
Of course, a FIFO roster may not be the choice an individual makes, so there needs to be a focus on growing strong regional communities to provide people with viable options to live and raise families near where they work.
The extremely high cost of land and housing remains the largest impediment to population growth and sustainable communities in the Pilbara.
The CME strongly supports state government efforts to increase the availability of land and the affordability of housing in the Pilbara region, in particular, the provision of low-cost accommodation for housing construction and service workers.
The CME has also supported the Royalties for Regions program since its inception – recognition by the resources sector of the importance of reinvesting government royalty revenue in the regions where it has been created. The Pilbara Cities project provides significant additional funding for investment in the Pilbara to provide community infrastructure and other key projects.
The Mid West, Goldfields, South West and Kimberley are all experiencing significant resources sector growth but these regions do not have advanced land release programs or programs like Pilbara Cities.
Forward planning for this social infrastructure is critical if we are to maximise the community benefits from strategic infrastructure investments like Oakajee Port.
• Reg Howard-Smith is chief executive of the Chamber of Minerals and Energy of Western Australia.
