Recommendations made: Parliamentary Inquiry into how the mining sector can support businesses in regional communities
Posted on December 12th, 2018
The Parliamentary Committee tasked with undertaking the national inquiry of “How the mining sector can support businesses in regional communities” has handed down its interim report incorporating twenty one (21) recommendations.
Read the full Report: Keep it in the regions
Capricorn Enterprise, representing its Members and broader industry network, tabled two Submissions for the consideration of the Committee. Regional Economic Development Manager, Neil Lethlean, also participated in public hearings, highlighting the various anomalies and discriminatory practices that exist in the resources sector as well as the need for a greater commitment by resource companies in respect to their “Social Licence to Operate”.
The Parliamentary inquiry, either directly or indirectly, has resulted in a flurry of activity by resource companies operating locally and interstate which aim to benefit small to medium sized regionally based businesses. The most significant (and extremely important for SMEs) is the commitment by large resource companies (including Peabody, Anglo-America and BHP) to implement 30-day payments commencing Dec 2018.
It is fair to say that the Inquiry recommendations are comprehensive with many requiring the support of State and Territory Governments via COAG arrangements.
Of extreme importance to regional communities are Recommendations such as:
Recommendation 2: Adoption of a “Royalties for Regions” type programs;
Recommendation 3: Introducing target for true local procurement;
Recommendation 5: Supporting regional small and medium enterprises and locally-based businesses of any size to engage with the mining sector;
Recommendation 6 & 7: Reviewing and strengthening the Business Council of Australia’s Australian Supplier Payment Code
Recommendation 9: Review of the Australian Consumer Law in respect to Unfair Contract Terms in business-to-business contracts
Access the full Inquiry List of Recommendations.