02/12/2011 - 14:48

CME hails certainty for resource project rates

02/12/2011 - 14:48

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The Chamber of Minerals and Energy has welcomed new state government policy for the rating of land for resources projects, saying the move delivers fairness and certainty for local governments and industry.

Premier Colin Barnett and Local Government Minister John Castrilli announced the changes earlier this week, introducing a Gross Rental Valuation (GRV) policy.

Under the changes, a rate will only be applied to permanent accommodation, recreation and administrative facilities and associated buildings, as well as maintenance workshops within 100 meters of these facilities from 1 July 2012.

“The changes mean that local governments receive adequate revenue from projects on their land so they can provide infrastructure and services to the community and industry receives certainty over long-term project costs,” CME chief executive Reg Howard-Smith said.

“Industry has long been of the view that the assets considered on a (GRV) rating was inconsistent and needed to be applied evenly across resources projects.”

The policy was developed through extensive discussion between the state and local governments, the CME and the Association for Mining and Exploration Companies.

The new policy will not, however, affect existing arrangements between local governments and mining proponents.

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