Today’s NSW State Budget demonstrates the importance of a strong mining sector to the NSW economy, with mining royalties at record levels and forecast to deliver the revenue needed to keep the NSW Budget in surplus over the forward estimates to 2022-23.
While Budget surpluses are expected to average $1.7 billion over the next four years, mining royalties are forecast to deliver nearly $8 billion, or an annual average of $1.97 billion over the same period, keeping the Budget in surplus while helping to pay for record investment in infrastructure and services.
“Mining in NSW provides over 40,000 direct jobs, mostly in the regions, and the record royalty revenue being generated by a strong mining sector is making a big contribution to the NSW Budget too,” NSW Minerals Council CEO Stephen Galilee said today.
The NSW Treasurer acknowledged this in his Budget Speech today, recognising a miner in the public gallery before telling the packed Parliament, “He knows, as we do, just how much we depend on our miners for their contribution to our economy, and just how much they depend on us to do the right thing by them with policies that help, rather than hurt.”
“This heartfelt tribute to the miners of NSW from the Treasurer in State Parliament will be warmly welcomed by thousands of miners and their families in towns and communities right across the State.”
Mining communities across NSW will also warmly welcome confirmation in today’s Budget that the Treasurer has kept the Coalition’s pre-election commitment not to increase royalty rates.
“Strong royalty revenue is being delivered without increasing royalty rates, unlike other states where royalty increases have been proposed. Keeping this pre-election commitment will help to protect mining jobs across regional NSW and make NSW a more attractive destination for global mining investment.”
Increased royalty revenue could be generated by the approval of more mining projects across NSW, which would also deliver more long-term mining jobs for regional NSW.
“There are around 25 mining projects currently in the NSW planning system with the potential to create or protect thousands of jobs and generate billions more in royalty revenue for the people of NSW. Approving these projects would deliver significant benefits for mining communities, for the NSW budget and for the NSW economy more generally.”
Today’s Budget also confirms the NSW Government’s ongoing commitment to regional mining communities through the Resources for Regions program funded from the Regional Growth Fund.
“The additional $100m committed to the $1.7 billion Regional Growth Fund is welcome, and we will be looking for a significant increase in funding made available for Resources for Regions as part of the Deputy Premier’s foreshadowed review of this important program," he said.
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