International companies have warned the Gillard government that they may scale back investment plans in Australia due to carbon pricing, surging labour costs, the high dollar and political uncertainty.
Leading executives of multinational corporations claim that Australia’s business-friendly reputation is at risk and parent companies could shift resources to Asian nations.
The value of Australia’s resource and energy exports in 2010-11 increased by 27 per cent from a year earlier to a record $175 billion.
The Bureau of Resources and Energy Economics estimates the value of our mineral and energy commodity exports will increase by a further 21 per cent to $215 billion in 2011-12 as a result of growth in the production of iron ore, liquefied natural gas, copper, crude oil, metallurgical coal and thermal coal.
Since the Government announced details of the Minerals Resource Rent Tax and its plans to put a price on carbon, resource companies have approved billions of dollars of new spending on coal, iron ore, petroleum and other resource projects.
New capital expenditure on minerals and energy projects in 2010-11 was the highest on record and nearly four times the average annual expenditure of the past 30 years.
There is over $430 billion worth of planned or committed investment in the pipeline.
This year national exploration expenditure for minerals and energy is estimated to increase to $6.3 billion, from $5.7 billion in the previous year.