ADVOCACY ALERT | Where is 'Team Australia' for our nation's core industries?

27th July 2021

Townsville Enterprise today appeared before the Joint Standing Committee on Trade and Investment Growth for its inquiry into the prudential regulation of investment in Australia's export industries.

Townsville Enterprise’s submission highlights the critical role of the mining and resources export industry on the national economy, particularly across the COVID-19 pandemic, and calls out the unsubstantiated ideological positions of banks and insurers taken against those working within this sector.

There are approximately 18 insurers and reinsurers locally and globally that have all recently updated their positions on coal and mining related risks to some extent, with most choosing to either not provide or drastically reduce their capacity to support business who are generating more than 30% of revenue from thermal coal.

During the hearing today (appearing via video link) we emphasised to the committee that a level playing field to access finance and insurance in Australia for any lawful business activity is not too much to ask, particularly for hardworking, reliable entities. Today's appearance follows the first hearing on 25 June with Queensland Resources Council, Adani Australia, Minerals Council of Australia, and Resource Industry Network, as well as the big four banks and the Insurance Council of Australia today.

FROM THE CHIEF EXECUTIVE OFFICER... 
"There is significant risk not just to regional communities like ours, but the nation, when major finance and insurance institutions apply bias to appease their capital city clients."

“We expect nothing less than a fair ruling for all. North Queensland will not be dictated to by positions driven by ideology and devoid of facts. If there is global demand, than there is no reason why these institutions should not offer finance and insurance. It creates a dangerous precedence for our nation if this is allowed to occur.

“These same banks had their hands out for taxpayer guarantee’s during the GFC, yet they can’t now bring themselves to do the Australian thing and lend a hand to hard working men and women in regional resource communities. Australian banks with their taxpayer underwriting give more weight to a foreign activist than a local who wants an honest resource sector job.

“The banks are all prepared to give mortgages, charge their bank fees and credit card rates for miners and their families…just not lend to facilitate the mine they work at to have a future.

"We’re technology neutral and jobs positive when it comes to economic prosperity in the north. We take every opportunity that comes our way and will not let unfounded assessments railroad the development of Northern Australia. Whilst an eye must certainly be kept on future technologies, support must continue towards existing industries.

“As of this year, Bravus had signed $2.2 billion in contracts to build the Carmichael Mine and Rail Project. In under two years since the project was greenlighted by the Queensland Government the company has employed more than 2600 locals in our community. Now is the time we need sustained jobs to support families, not a time to rip the cord on them.

“SME’s in our region have been bullied into silence by the big banks and foreign insurance companies not to speak out for losing even the small amount of support left for them to continue as resources sector businesses. They’re good corporate citizens trying to keep millions of Australians in jobs and put food on the table for families.

"We welcomed the opportunity to appear before the Joint Standing Committee today to speak on behalf of regional Queensland and providing a voice to all those working in the mining and resources industry."

Claudia Brumme-Smith
Chief Executive Officer
Townsville Enterprise

A recent membership survey undertaken by the Queensland Resources Council found that 75% of respondents said accessing banking or lending services has become more difficult, with an increase of between 50 and 85 per cent in banking costs over the last two years. Most concerningly, over a third of companies surveyed said that if banking costs remain at these levels for the next five years they would be unlikely to continue operating.

When it came to insurance, 90 per cent of respondents said they had experienced major change in insurance as a result of working in the resources industry and that the cost has increased by between 90 and 120 per cent over the last two years.

READ OUR SENATE COMMITTEE SUBMISSION HERE

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