Tugboat turmoil

IN THE LOBBY: The Chamber of Minerals and Energy of Western Australia (CME) has predicted doom and gloom for the resources sector, in particular for northwest iron ore producers, if the Maritime Union of Australia (MUA) takes industrial action in Port Hedland.

“Any disruption to the port’s export operations will have an immediate and negative impact to iron ore producers and both the state and national economies,” CME chief executive Reg Howard-Smith said.

“Port Hedland is the largest bulk export port in the world.  Its contribution to our economy is far too valuable to risk in any industrial negotiations.”

The CME said the industry is concerned the strike could result in costly and negative flow-on impacts for other ports associated with the MUA’s claim.

“Another significant consequence would be the damage to Western Australia’s international reputation as a safe investment destination and a reliable supplier of vital commodities such as iron ore,” Howard-Smith said.

“Any retreat to the bad old days of industrial chaos in the Pilbara will mean resources projects get developed elsewhere, costing jobs locally.”

The CME said the Western Australian resources sector is focused on capital and labour productivity, particularly given volatile market dynamics.

To that end CME have been urging Federal and State Governments to focus on policy initiatives which address the rising cost of doing business here in Western Australia.

“Exorbitant pay claims, which deliver no increase in productivity have no place in the modern and world-class Western Australian resources sector,” Mr Howard-Smith said.

The CME pointed to the WA State Budget released earlier this month, which it said had highlighted the economic importance of the resources sector, with more than 22 per cent of the State Government’s revenue coming from mining royalties alone.

“The benefits of the resources sector to the WA community are pretty clear,” Howard-Smith said.

“However we need to recognise and address the cost challenges faced by industry, if we are to continue to deliver ongoing prosperity to the community.”