RECORD investment in resources projects has shaped the federal government’s 2011-12 budget, which, as expected, has outlined new initiatives to bring skilled workers to regional Australia.
RECORD investment in resources projects has shaped the federal government’s 2011-12 budget, which, as expected, has outlined new initiatives to bring skilled workers to regional Australia.
Measures that will be particularly important for Western Australia are special migration schemes for large projects and a small lift in infrastructure funding, though the latter is tied to the passage of the Minerals Resource Rent Tax.
Treasurer Wayne Swan has pledged to return the budget to surplus by 2012-13 and has done so without announcing any dramatic spending or tax measures.
Instead he has relied on multiple smaller measures that collectively are budgeted to deliver $22 billion in savings.
The budget bottom line is predicted to go from a deficit of $49 billion in 2010-11 and $22 billion this year to a $3.5 billion surplus in 2013-14.
This outcome will be helped by solid economic and employment growth.
Treasury has forecast the economic growth rate to be 4 per cent and 3.75 per cent over the next two years, with the national unemployment rate falling to 4.5 per cent by mid-2013.
Much of the growth depends on the booming resources sector, rising exports to China and huge growth in investment.
“Mining investment will rise to around eight times the level preceding the boom to $76 billion in 2011-12, underpinned by the highest sustained terms of trade in 140 years,” Mr Swan said.
But he said the benefits of the boom were not being fairly shared in the “patchwork economy”, which also threatened to create job shortages and inflation.
To help address labour shortages in the resources sector, skilled migrants will be encouraged to settle in regional Australia.
The government’s skill stream intake will go up to 125,850 places, with 16,000 earmarked for rural Australia.
Regional visas will be processed as a priority over others, Immigration Minister Chris Bowen said.
The government has also announced details of its enterprise migration agreements (EMA), which will enable large resources projects to fast-track skilled migration.
The threshold to qualify for an EMA has been set at a relatively low level – projects must have capital expenditure of $2 billion or more and a peak workforce of 1,500 workers.
In addition, projects will need to develop a comprehensive training plan.
“This plan will need to set measurable targets for training that develops skills in occupations where there are known or anticipated shortages,” Mr Bowen said.
“Overseas labour will only be supplementary, with resources projects required to demonstrate effective and ongoing local recruitment efforts.”
He said the government would also look to halve 457 visa-processing times.
In the area of infrastructure investment, the Gillard government will increase spending in WA by $180 million over the six-year life of the existing Nation Building Program, to a record total of $3.7 billion.
This coming financial year, the federal government will provide $920 million out of the $3.7 billion.
This will include $480 million towards the Gateway WA project, which will aim to alleviate congestion on the road network surrounding Perth Airport.
Premier Colin Barnett questioned Canberra’s focus on the mining boom, warning that Mr Swan was too optimistic about the benefits being shared.
“Wayne Swan is placing his hopes on the mining industry and what he calls a mining boom,” Mr Barnett said.
He said the federal government had missed an opportunity in the budget to encourage people to move from populated states to where the jobs are.
“If the jobs are in WA and Queensland, let’s get people to move out of NSW.”
Mr Barnett welcomed moves to increase skilled migration and boost training but said the former was insufficient and the latter was nothing particularly new.
