FTS Benefits
A detailed study of the cost benefits of flow through shares for the resource exploration sector has been completed by Synergies Economic Consulting and the Centre for Policy Studies with the support of major professional and industry representative groups.
The study demonstrates that the immediate implementation of a FTS scheme would be a very worthwhile stimulus measure, delivering significant short term socio-economic benefits across Australia at an estimated cost to government of approximately $130m per year.
Between 2009-10 and 2012-13, a FTS scheme could generate immediate socio-economic benefits across Australia through up to:
- 4,196 new jobs
- $114.4m in additional Gross Domestic Product
- $191.2m in additional real private consumption
- $965.1m in additional real investment
The study did not attempt to quantify the substantial ‘flow-on' of economic benefits expected beyond 2012-13 when more exploration is inevitably translated into more discoveries, and in turn, new mines and increased minerals and energy production.
Compared with other industries often promoted as vehicles for generating increased economic activity, ‘resource exploration' ranks #1 in terms of value-adding and #3 behind ‘residential construction' and ‘financial services' in terms of employment generation.
A FTS has the advantages of delivering both significant long-term benefits and increasing net levels of demand in the economy at a time when it is most needed.
The study supports a detailed submission to Minister for Resources, Martin Fergusson in November 2008, pointing out the tangible benefits of FTS to the Australian economy and our resource industries in particular.
AIG has written to the Treasurer, Finance Minister and Minister for Resources calling on the government to honour its pre-2007 election promise to introduce a FTS scheme in nits first term. The impacts of the global economic down turn on:
- geoscientist employment and career development opportunities
- mineral and energy resource exploration and
- Australia's resource project pipeline which sustains our mining industryrequire immediate, responsible action. AIG continues to call on the government to implement a FTS scheme by 30 June 2009.
- Andrew Waltho
President, Australian Institute of Geoscientists
May 2009
AIG's bursary programme for undergraduate and postgraduate students is generously supported by sponsors including:
Digirock Pty Ltd
Sydney Mineral Exploration Discussion Group (SMEDG)
AIG State Branches
Gnomic Exploration Services Pty Ltd
Office of Minerals & Energy PIRSA
Terra Search Pty Ltd
Cryptodome Pty Ltd
