Several local councils could receive ratings payments into the millions of dollars if the state government’s plan to remove ratings exemptions for mining companies under State Mining Agreements comes to fruition.
Several local councils could receive ratings payments into the millions of dollars if the state government’s plan to remove ratings exemptions for mining companies under State Mining Agreements comes to fruition.
The government is currently under-taking a local government ratings study, with the involvement of resources companies Iluka Resources, Rio Tinto, Alcoa, BHP Billiton, Wesfarmers Premier Coal and Woodside.
The study will assess each state arrangement individually, with the government to negotiate ratings with mining companies on a case-by-case basis.
Seven projects are currently being looked at, ranging from mineral sands projects in the state’s south, to gold mining, iron ore, gas and oil projects in the north, across a number of council areas.
WA Local Government Association president Bill Mitchell applauded the companies for recognising their community responsibilities and for taking part.
“For 40 years, councils haven’t been able to rate land, housing, infrastructure on their country because of state agreements, yet have still had to deliver the services…that local governments need to deliver to their towns,” Mr Mitchell said.
“Thinking has moved on from that. It’s acknowledged now that a lot of the company’s employees live and stay in those towns, and it’s seen as a contribution back to those communities.”
Mr Mitchell said the study also recognised the need for local governments to receive a fairer distribution of mining revenue.
“Local governments are there at the start of communities and they are there long after developments have moved on. They are the fabric of the community,” he said.
Chamber of Minerals and Energy WA director of policy and external relations, David Parker, said the chamber had been working closely with the Department of Industry and Resources, and co-operating with the study reference group, voicing the chamber’s concern over the plan.
“Under the terms of state agreements, exemptions on paying local government rates were part of package of measures designed to encourage and stimulate investment in WA,” Mr Parker said. “Those state agreements go back decades, they have been the absolute cornerstone of the success of the states economy on the back of that substantial resources investment coming into WA.”
Mr Parker said that the resources industry was a major contributor to the sustainability of WA, providing $1.7 billion in royalties to the state government and directly employing 55,000 people.
The chamber will also be closely monitoring the study’s findings on the full extent of voluntary contributions already being made by state agreement companies.
“We believe this will reveal the substantial contribution being made by our member companies in regional locations,” Mr Parker said.
