Give contractors a ‘fair go’
CALLS FOR MULTINATIONAL MINING GIANTS TO PAY CONTRACTS WITHIN 30 DAYS OR LESS
Mr Christensen said Mackay businesses had been struggling for “far too long”.
“The big mining companies (are) dictating to local contractors how long their terms of payment are going to be,” he said. “What ends up happening is local businesses then struggle to make their own payments.”
Mackay’s Resource Industry Network found that reverting to 30-day payment terms would add 380 jobs, $150 million in wages and $250 million in gross regional product to the region’s economy over the next five years.
One Mackay business owner, who did not wish to be named, said it was difficult to pay staff wages every seven days when the business was waiting 60-90 days to be paid for their work.
He recognised that not all mining companies were to blame. He said Glencore, New Hope Group and Whitehaven Coal were maintaining payments within 30 days.
He claimed BHP and Rio Tinto were the two main culprits. “BHP has a big footprint in this region so many locals are adversely affected,” he said.
“When there is less cash in the business it impacts on the business being able to grow, have stock on the shelf, and invest in technology and research and development.
“You need surplus cash to invest in overhead roles but when the cash is tied up somewhere else you can’t do that.’’
Sign the petition online at www.makeit30days.com.au. THE release of a Federal Government report has sparked hope regional areas will soon reap the benefits of an upsurge in the coal industry.
The report, released earlier this month, showed a $250 billion increase in the Australian economy, delivered by the mining industry.
Jack Trenaman, managing director of mining support group SMW, said the jump in exports boded well for parts of the state that relied on the mining industry.
“The Bowen Basin has premium grade coal which attracts a premium price,” Mr Trenaman said.
“The rest of the world wants what we’ve got here and with those exports come the royalties, and with the royalties come opportunities for companies like up us to grow, and as well to see the infrastructure in regional towns like Rockhampton grow.
“Coal royalties for Queensland, and especially in our region, is certainly underestimated and I think we all need to appreciate the contribution to coal for these areas and the growth to what we have now and where it will take us in the future.”
PAY UP: Dawson MP George Christensen has launched the Make it 30 Days campaign.