RIN welcomes Federal Government inquiry into financial sector's treatment of the resources industry

The Joint Standing Committee on Trade and Investment growth has announced an inquiry into and report on the prudential regulation of investment in Australia’s export industries, after a recommendation from Minister for Resources, Water and Northern Australia Keith Pitt.

“As an organisation that represents the interests of the resources supply chain in the Mackay, Isaac, Whitsunday region, Resource Industry Network welcomes this inquiry and will be making a submission to the parliamentary committee on behalf of its member businesses,” RIN general manager Dean Kirkwood said.

“We are glad to see government engage in conversations around the practices of banking and superannuation companies in an effort to introduce policies that support a business’ ability to receive insurance and loans in a way that is fair.

“After all, the businesses affected are legitimate operations contributing enormously to the state and national economies, and employ thousands of people. In the Mackay region alone, 2019-2020 data from the Queensland Resources Council suggests more than 97,000 full-time jobs are supported by resources sector both directly and indirectly.

“The ability for the resources supply chain to access insurance or loans based on the sectors they service, needs to be addressed, along with the need for an improvement in transparency of these operations.

“We know of local businesses being denied insurance for servicing coal industry customers, which has them questioning the feasibility of their operations to continue.

“These decisions restrict a business’ ability to operate with a number of members believing the limitations for METS businesses is at a threshold where they are asking if it’s tenable to continue to operate,” Mr Kirkwood said.

“What is obvious is that government, insurance companies, financial institutions, and the like, need to be educated on the different types of coal produced in this country. Notably, the fact that the majority of the Bowen Basin’s coal is metallurgical coal, not thermal,” he added.

“Representing our members and the broader resources supply chain is part of our charter and we have contributed effectively to a number of government inquiries in the past including the topic of 30-day payment terms as part of the inquiry into how the mining sector can support businesses in regional economies,” Mr Kirkwood added.

RIN is also encouraging other local supply chain businesses to consider making a submission to the inquiry so the full extent of the issue can be realised and recommendations for improvements made.

*ENDS*

For further information, or to discuss interview opportunities, please contact:
Jodie Thompson - RIN Communications Manager
P: 07 4952 4184    |   M: 0408 638 968
Email: comms@resourceindustrynetwork.org.au