Markets, CPRS biggest sector worries

Queensland minerals and energy sector leaders have ranked uncertainty surrounding global markets just ahead of domestic climate change policies as major business concerns in the first CEO Sentiment Index published today by the Queensland Resources Council.

Surveyed in June, the responses from the chief executives of 79 QRC member companies have been collated and ranked in the June quarter edition of the QRC’s State of the Sector Report.

The survey – a regular feature of future State of the Sector reports – encapsulates what sector chief executives have identified as core issues likely to impact adversely on their companies over the next 12 months.

‘Not surprisingly, the issue keeping most CEOs awake at night is the global economic environment and the uncertainty surrounding a timetable for recovery,’ said Queensland Resources Council Chief Executive, Michael Roche.

‘Also rating highly as concerns are the impact of domestic climate change policies currently before the Australian Parliament and a raft of administrative and sovereign risk uncertainties at the state level.

‘Workplace relations policies, capital raising, the availability of industry infrastructure and increasing input costs were also regarded by chief executives as priority business concerns over the next 12 months,’ he said.

Mr Roche said QRC member concerns over the impact on industry and regional Queensland of the Carbon Pollution Reduction Scheme had been confirmed by four independent economic analyses, including one commissioned by state and territory government leaders.

‘Every report has concluded that the coal and black coal electricity generation sectors are particularly disadvantaged by the current CPRS and that spells trouble for Queensland taxpayers that could run into billions of dollars in lost revenues by 2020-21.’

Mr Roche said QRC research of the Queensland resource sector’s second quarter performance for 2009 showed indications that the global economic downturn might be stabilising.

‘For example, we did note renewed enthusiasm in some coal markets during June, and a slight rebound in prices for some base and precious metals.

‘However, most indicators are still saying that global economic activity will remain weak in 2009 and possibly into 2010,’ he said.

Click on the sidebar to the right to read the report.

Media contact: Jim Devine (07) 3295 9560