Friday, May 28, 2010

Henry: Mining sector did not stop recession

The mining sector did not keep Australia out of recession, and any claim that it did is not backed up by the facts, Treasury Secretary Ken Henry has told a Senate hearing.

"The suggestion that the mining industry kept Australia out of recession is curious to say the least," Dr Henry said.

''It is true that Australia avoided a recession, but the Australian mining industry actually experienced quite a deep recession. In the first six months of 2009 it shed 15 per cent of its workers. Mining investment collapsed, mining output collapsed.

''Had every industry behaved that way our unemployment rate would have climbed to 19 per cent.''

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