Taxpayers fund mining profits, manufacturing workers miss out

AMWU Sep 08, 2011

New figures from the Australian Bureau of Statistics show that the mining industry received more government assistance for operational costs than manufacturing over the past 12 months, despite record mining profit levels.

The ABS figures show that the mining sector received 1.104 billion in federal, state or local government assistance in 2009/10, while manufacturing received $887million.
 
The figures also show that the mining sector was 5 times as profitable while it was receiving those handouts. (Mining profit margins averaged 33.4%, while average manufacturing sector profit margins were only 6.5% over same period.)

The AMWU says it is outrageous that mining profits are being propped up by government support at the same time as manufacturing is struggling with the high dollar and cheap imports.

AMWU National Secretary, Dave Oliver, said:

“The figures expose the myth that manufacturing relies on government support while mining pays it's own way.

“Manufacturing is far more significant to the economy. It employs 5 times as many people as mining, and contributes far more to training and research & development.

“At the moment, manufacturing is facing significant challenges with the high exchange rate caused by the mining boom.

“It's shocking to see that mining profits are being propped up by the taxpayer, while manufacturing is receiving less government investment.

“Government investment in manufacturing is good value because it delivers important structural outcomes - employment, training and innovation.

“The subsidies big miners are receiving should be redirected to manufacturing, instead of just propping up the miners' massive profit margins.”