21/11/2008 - 13:37

Resources keep WA in strong position:CME

21/11/2008 - 13:37

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Western Australia is approaching the current global economic crisis from a position of strength with the strong growth in the resources sector having a widespread direct and indirect positive impacts on the economy.

Resources keep WA in strong position:CME

Western Australia is approaching the current global economic crisis from a position of strength, with strong growth in the resources sector having widespread positive impacts on the economy, research says.

Research conducted for the Chamber of Minerals and Energy of Western Australia was commissioned to help quantify the impact of the resources sector on Western Australia.

This research indicated, over the 10 years to 2006-07, the resources sector's output had grown by 15.4 per cent per annum, the manufacturing sector by an average of 6.7 per cent per annum and the construction sector by 10.7 per cent per annum.

60 per cent of manufacturing subdivisions directly related to resources while the business and property services sector is directly influenced by the resources sector growth and this sector expanded its output by 10.3 per cent per annum over the past 10 years.

Also, the majority of this growth in employment, 59.4 per cent, is directly attributable to the resources, construction, manufacturing and property and business services sectors.

CME chief executive, Reg Howard-Smith said the research concluded the state is approaching the current global economic crisis from a position of strength.

"The sectors that have directly benefited from significant resources sector growth are the majority of the manufacturing sector, a significant part of the construction sector and over half of the property and business services sector", Mr Howard-Smith said.

"The impact of the resource sector is not just related to regional areas, but has a significant effect on Perth's economy."

 

 

 

 

 

 

FUll announcement below:

 

RESCOURCES CONTRIBUTION TO WA WIDESPREAD
21 November 2008
MEDIA RELEASE NO. CME 40-08


Research conducted for the Chamber of Minerals and Energy of Western Australia (CME) indicates the State should be in a good position to weather the global financial crisis.

According to CME Chief Executive, Reg Howard-Smith, the CME commissioned the research to help quantify the impact of the resources sector on Western Australia.

Mr Howard-Smith said the research concluded the state is approaching the current global economic crisis from a position of strength.

The research also shows the strong growth in the resources sector has had widespread direct and indirect positive impacts on the Western Australian economy.

"The sectors that have directly benefited from significant resources sector growth are the majority of the manufacturing sector, a significant part of the construction sector and over half of the property and business services sector", Mr Howard-Smith said.

Growth in the resources sector has also had significant indirect impacts that have improved the prosperity of many Western Australians.

Highlights from the research include:
- the resources sector's output growing by 15.4 per cent per annum over the past 10 years, and represented 30 per cent of the State's output in 2006-07;
- the manufacturing sector, with over , averaging output growth of 6.7 per cent per annum over the 10 years to 2006-07, to be 8.2 per cent of the State's total output in 2006-07;
- the construction sector's output growing by 10.7 per cent per annum over the 10 years to 2006-07, to be 7.7 per cent of the State's total output in 2006-07;
- the business and property services sector, which is directly influenced by the resources sector growth, expanding output by 10.3 per cent per annum over the past 10 years. The sector represented 10.9 per cent of the State's output in 2006-07;
- the majority of this growth in employment, 59.4 per cent, is directly attributable to the resources, construction, manufacturing and property and business services sectors;

"The Report has found that technological development has underpinned the ability of the resources sector to respond to changing market circumstances".

"These developments include innovative software and equipment, new scientific analysis methods, improved exploration and assessment technology and improved mineral processing techniques." Mr Howard-Smith said.

"The impact of the resource sector is not just related to regional areas, but has a significant effect on Perth's economy."

Mr Howard-Smith said the results of the report highlight how important it is for governments and industry to work together to ensure capacity constraints are addressed and that policy and regulatory settings are optimised to ensure the

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