❓ Question addresses mine closures and job losses in WA's mining industry due to the global economic crisis. The Minister acknowledges the severity of the situation and limited government intervention options, highlighting the industry's resilience and potential future recovery linked to China's economic growth.
AnsweredQoN 191Legislative Council
QuestionView source ↗
mining industry — mine closures
I refer to the continuing threat to Western Australian jobs due to mine closures in Western Australia. (1) What can be done to mitigate these job losses and assist the mining industry to keep existing mines open? (2) What is the minister’s strategy to mitigate these job losses and assist the mining industry to keep existing mines open? Hon NORMAN MOORE
I refer to the continuing threat to Western Australian jobs due to mine closures in Western Australia. (1) What can be done to mitigate these job losses and assist the mining industry to keep existing mines open? (2) What is the minister’s strategy to mitigate these job losses and assist the mining industry to keep existing mines open? Hon NORMAN MOORE
AnswerView source ↗
I thank the member for the question. (1)-(2) I suspect that the Greens (WA) might be quite comfortable with what is happening in Western Australia at present. Hon Paul Llewellyn interjected. Hon NORMAN MOORE : Sorry; I thought that is what the member was suggesting in his interjection. Hon Paul Llewellyn : We are suggesting that a green new deal might help provide you with a plan. Hon NORMAN MOORE : A green new deal? Why does the member not send it up? I am happy to listen to anything that anyone might like to suggest. However, based on past performance, I do not know that it is something we would necessarily accept with both arms wide open. The honourable member who asked the question wanted to know what the state government can do to save the mining industry from the global economic crisis. I suspect that it can probably do very little. The problem that we face in the world, which is unprecedented in modern history, is such that the demand for resources and commodities from Western Australia has diminished. Indeed, prices also have diminished. The supply and demand situation for our commodities is now out of kilter. A lot of mining companies are finding it difficult to operate with the prices that are available in the world market at present. A classic case is nickel. The world price of nickel is at a very low level; it is about $US3 a pound, if my memory serves me correctly. However, it was significantly higher than that only 12 months ago. The crash that has been associated with the global economic crisis has been dramatic. Indeed, probably one year ago most people were still thinking in boom terms. It caught everybody, including me, by surprise. Many people had predicted a continuation of the boom; very few people had predicted the crash that we are experiencing at present. As a consequence, the state government can do very little in any real sense to save the mining industry. However, I remind the member that the mining industry is very resilient. It has gone through ups and downs over the entire history of the mining industry in Western Australia. In my experience, I have been associated with five mining operations that closed down for a number of reasons—sometimes because the ore body ran out and sometimes because the economic circumstances were such that the mine could not operate. I do not think the Labor Party is suggesting that the state government should say to BHP Billiton Ltd that it will subsidise the operation of the Ravensthorpe nickel operation. I do not know whether that is what the Labor Party is saying, but if it is, it should say so. I would be very interested to know whether that is the attitude of the opposition. Interestingly, a question was asked earlier today about how many employees had lost their jobs in Western Australia. I think about 4 700 employees in the mining industry is the best estimate at the moment. However, I know that a large number of those people have been re-employed in other operations. It was not all that long ago that the biggest problem facing the mining industry was a serious shortage of labour, to the point at which the cost of doing business in the mining industry was in excess of what it should have been, with workers being paid very high salaries at great expense to companies. There is a balancing out of the labour market in the mining industry, and, in the long term, that might not be altogether a bad thing. However, for the time being, we regret that there is a world economic crisis. I am confident, from what I have heard about the Chinese economy, that there will be about eight per cent domestic growth in China this year. One can only hope that in the out years that will go back to the double-digit growth rate that we have experienced in recent times. That will be part of the solution to the situation facing the mining industry in Western Australia.
(1) What can be done to mitigate these job losses and assist the mining industry to keep existing mines open? (2) What is the minister’s strategy to mitigate these job losses and assist the mining industry to keep existing mines open? Hon NORMAN MOORE replied: I thank the member for the question. (1)-(2) I suspect that the Greens (WA) might be quite comfortable with what is happening in Western Australia at present. Hon Paul Llewellyn interjected. Hon NORMAN MOORE : Sorry; I thought that is what the member was suggesting in his interjection. Hon Paul Llewellyn : We are suggesting that a green new deal might help provide you with a plan. Hon NORMAN MOORE : A green new deal? Why does the member not send it up? I am happy to listen to anything that anyone might like to suggest. However, based on past performance, I do not know that it is something we would necessarily accept with both arms wide open. The honourable member who asked the question wanted to know what the state government can do to save the mining industry from the global economic crisis. I suspect that it can probably do very little. The problem that we face in the world, which is unprecedented in modern history, is such that the demand for resources and commodities from Western Australia has diminished. Indeed, prices also have diminished. The supply and demand situation for our commodities is now out of kilter. A lot of mining companies are finding it difficult to operate with the prices that are available in the world market at present. A classic case is nickel. The world price of nickel is at a very low level; it is about $US3 a pound, if my memory serves me correctly. However, it was significantly higher than that only 12 months ago. The crash that has been associated with the global economic crisis has been dramatic. Indeed, probably one year ago most people were still thinking in boom terms. It caught everybody, including me, by surprise. Many people had predicted a continuation of the boom; very few people had predicted the crash that we are experiencing at present. As a consequence, the state government can do very little in any real sense to save the mining industry. However, I remind the member that the mining industry is very resilient. It has gone through ups and downs over the entire history of the mining industry in Western Australia. In my experience, I have been associated with five mining operations that closed down for a number of reasons—sometimes because the ore body ran out and sometimes because the economic circumstances were such that the mine could not operate. I do not think the Labor Party is suggesting that the state government should say to BHP Billiton Ltd that it will subsidise the operation of the Ravensthorpe nickel operation. I do not know whether that is what the Labor Party is saying, but if it is, it should say so. I would be very interested to know whether that is the attitude of the opposition. Interestingly, a question was asked earlier today about how many employees had lost their jobs in Western Australia. I think about 4 700 employees in the mining industry is the best estimate at the moment. However, I know that a large number of those people have been re-employed in other operations. It was not all that long ago that the biggest problem facing the mining industry was a serious shortage of labour, to the point at which the cost of doing business in the mining industry was in excess of what it should have been, with workers being paid very high salaries at great expense to companies. There is a balancing out of the labour market in the mining industry, and, in the long term, that might not be altogether a bad thing. However, for the time being, we regret that there is a world economic crisis. I am confident, from what I have heard about the Chinese economy, that there will be about eight per cent domestic growth in China this year. One can only hope that in the out years that will go back to the double-digit growth rate that we have experienced in recent times. That will be part of the solution to the situation facing the mining industry in Western Australia.
(2) What is the minister’s strategy to mitigate these job losses and assist the mining industry to keep existing mines open? Hon NORMAN MOORE replied: I thank the member for the question. (1)-(2) I suspect that the Greens (WA) might be quite comfortable with what is happening in Western Australia at present. Hon Paul Llewellyn interjected. Hon NORMAN MOORE : Sorry; I thought that is what the member was suggesting in his interjection. Hon Paul Llewellyn : We are suggesting that a green new deal might help provide you with a plan. Hon NORMAN MOORE : A green new deal? Why does the member not send it up? I am happy to listen to anything that anyone might like to suggest. However, based on past performance, I do not know that it is something we would necessarily accept with both arms wide open. The honourable member who asked the question wanted to know what the state government can do to save the mining industry from the global economic crisis. I suspect that it can probably do very little. The problem that we face in the world, which is unprecedented in modern history, is such that the demand for resources and commodities from Western Australia has diminished. Indeed, prices also have diminished. The supply and demand situation for our commodities is now out of kilter. A lot of mining companies are finding it difficult to operate with the prices that are available in the world market at present. A classic case is nickel. The world price of nickel is at a very low level; it is about $US3 a pound, if my memory serves me correctly. However, it was significantly higher than that only 12 months ago. The crash that has been associated with the global economic crisis has been dramatic. Indeed, probably one year ago most people were still thinking in boom terms. It caught everybody, including me, by surprise. Many people had predicted a continuation of the boom; very few people had predicted the crash that we are experiencing at present. As a consequence, the state government can do very little in any real sense to save the mining industry. However, I remind the member that the mining industry is very resilient. It has gone through ups and downs over the entire history of the mining industry in Western Australia. In my experience, I have been associated with five mining operations that closed down for a number of reasons—sometimes because the ore body ran out and sometimes because the economic circumstances were such that the mine could not operate. I do not think the Labor Party is suggesting that the state government should say to BHP Billiton Ltd that it will subsidise the operation of the Ravensthorpe nickel operation. I do not know whether that is what the Labor Party is saying, but if it is, it should say so. I would be very interested to know whether that is the attitude of the opposition. Interestingly, a question was asked earlier today about how many employees had lost their jobs in Western Australia. I think about 4 700 employees in the mining industry is the best estimate at the moment. However, I know that a large number of those people have been re-employed in other operations. It was not all that long ago that the biggest problem facing the mining industry was a serious shortage of labour, to the point at which the cost of doing business in the mining industry was in excess of what it should have been, with workers being paid very high salaries at great expense to companies. There is a balancing out of the labour market in the mining industry, and, in the long term, that might not be altogether a bad thing. However, for the time being, we regret that there is a world economic crisis. I am confident, from what I have heard about the Chinese economy, that there will be about eight per cent domestic growth in China this year. One can only hope that in the out years that will go back to the double-digit growth rate that we have experienced in recent times. That will be part of the solution to the situation facing the mining industry in Western Australia.
Hon NORMAN MOORE replied: I thank the member for the question. (1)-(2) I suspect that the Greens (WA) might be quite comfortable with what is happening in Western Australia at present. Hon Paul Llewellyn interjected. Hon NORMAN MOORE : Sorry; I thought that is what the member was suggesting in his interjection. Hon Paul Llewellyn : We are suggesting that a green new deal might help provide you with a plan. Hon NORMAN MOORE : A green new deal? Why does the member not send it up? I am happy to listen to anything that anyone might like to suggest. However, based on past performance, I do not know that it is something we would necessarily accept with both arms wide open. The honourable member who asked the question wanted to know what the state government can do to save the mining industry from the global economic crisis. I suspect that it can probably do very little. The problem that we face in the world, which is unprecedented in modern history, is such that the demand for resources and commodities from Western Australia has diminished. Indeed, prices also have diminished. The supply and demand situation for our commodities is now out of kilter. A lot of mining companies are finding it difficult to operate with the prices that are available in the world market at present. A classic case is nickel. The world price of nickel is at a very low level; it is about $US3 a pound, if my memory serves me correctly. However, it was significantly higher than that only 12 months ago. The crash that has been associated with the global economic crisis has been dramatic. Indeed, probably one year ago most people were still thinking in boom terms. It caught everybody, including me, by surprise. Many people had predicted a continuation of the boom; very few people had predicted the crash that we are experiencing at present. As a consequence, the state government can do very little in any real sense to save the mining industry. However, I remind the member that the mining industry is very resilient. It has gone through ups and downs over the entire history of the mining industry in Western Australia. In my experience, I have been associated with five mining operations that closed down for a number of reasons—sometimes because the ore body ran out and sometimes because the economic circumstances were such that the mine could not operate. I do not think the Labor Party is suggesting that the state government should say to BHP Billiton Ltd that it will subsidise the operation of the Ravensthorpe nickel operation. I do not know whether that is what the Labor Party is saying, but if it is, it should say so. I would be very interested to know whether that is the attitude of the opposition. Interestingly, a question was asked earlier today about how many employees had lost their jobs in Western Australia. I think about 4 700 employees in the mining industry is the best estimate at the moment. However, I know that a large number of those people have been re-employed in other operations. It was not all that long ago that the biggest problem facing the mining industry was a serious shortage of labour, to the point at which the cost of doing business in the mining industry was in excess of what it should have been, with workers being paid very high salaries at great expense to companies. There is a balancing out of the labour market in the mining industry, and, in the long term, that might not be altogether a bad thing. However, for the time being, we regret that there is a world economic crisis. I am confident, from what I have heard about the Chinese economy, that there will be about eight per cent domestic growth in China this year. One can only hope that in the out years that will go back to the double-digit growth rate that we have experienced in recent times. That will be part of the solution to the situation facing the mining industry in Western Australia.
I thank the member for the question. (1)-(2) I suspect that the Greens (WA) might be quite comfortable with what is happening in Western Australia at present. Hon Paul Llewellyn interjected. Hon NORMAN MOORE : Sorry; I thought that is what the member was suggesting in his interjection. Hon Paul Llewellyn : We are suggesting that a green new deal might help provide you with a plan. Hon NORMAN MOORE : A green new deal? Why does the member not send it up? I am happy to listen to anything that anyone might like to suggest. However, based on past performance, I do not know that it is something we would necessarily accept with both arms wide open. The honourable member who asked the question wanted to know what the state government can do to save the mining industry from the global economic crisis. I suspect that it can probably do very little. The problem that we face in the world, which is unprecedented in modern history, is such that the demand for resources and commodities from Western Australia has diminished. Indeed, prices also have diminished. The supply and demand situation for our commodities is now out of kilter. A lot of mining companies are finding it difficult to operate with the prices that are available in the world market at present. A classic case is nickel. The world price of nickel is at a very low level; it is about $US3 a pound, if my memory serves me correctly. However, it was significantly higher than that only 12 months ago. The crash that has been associated with the global economic crisis has been dramatic. Indeed, probably one year ago most people were still thinking in boom terms. It caught everybody, including me, by surprise. Many people had predicted a continuation of the boom; very few people had predicted the crash that we are experiencing at present. As a consequence, the state government can do very little in any real sense to save the mining industry. However, I remind the member that the mining industry is very resilient. It has gone through ups and downs over the entire history of the mining industry in Western Australia. In my experience, I have been associated with five mining operations that closed down for a number of reasons—sometimes because the ore body ran out and sometimes because the economic circumstances were such that the mine could not operate. I do not think the Labor Party is suggesting that the state government should say to BHP Billiton Ltd that it will subsidise the operation of the Ravensthorpe nickel operation. I do not know whether that is what the Labor Party is saying, but if it is, it should say so. I would be very interested to know whether that is the attitude of the opposition. Interestingly, a question was asked earlier today about how many employees had lost their jobs in Western Australia. I think about 4 700 employees in the mining industry is the best estimate at the moment. However, I know that a large number of those people have been re-employed in other operations. It was not all that long ago that the biggest problem facing the mining industry was a serious shortage of labour, to the point at which the cost of doing business in the mining industry was in excess of what it should have been, with workers being paid very high salaries at great expense to companies. There is a balancing out of the labour market in the mining industry, and, in the long term, that might not be altogether a bad thing. However, for the time being, we regret that there is a world economic crisis. I am confident, from what I have heard about the Chinese economy, that there will be about eight per cent domestic growth in China this year. One can only hope that in the out years that will go back to the double-digit growth rate that we have experienced in recent times. That will be part of the solution to the situation facing the mining industry in Western Australia.
(1)-(2) I suspect that the Greens (WA) might be quite comfortable with what is happening in Western Australia at present. Hon Paul Llewellyn interjected. Hon NORMAN MOORE : Sorry; I thought that is what the member was suggesting in his interjection. Hon Paul Llewellyn : We are suggesting that a green new deal might help provide you with a plan. Hon NORMAN MOORE : A green new deal? Why does the member not send it up? I am happy to listen to anything that anyone might like to suggest. However, based on past performance, I do not know that it is something we would necessarily accept with both arms wide open. The honourable member who asked the question wanted to know what the state government can do to save the mining industry from the global economic crisis. I suspect that it can probably do very little. The problem that we face in the world, which is unprecedented in modern history, is such that the demand for resources and commodities from Western Australia has diminished. Indeed, prices also have diminished. The supply and demand situation for our commodities is now out of kilter. A lot of mining companies are finding it difficult to operate with the prices that are available in the world market at present. A classic case is nickel. The world price of nickel is at a very low level; it is about $US3 a pound, if my memory serves me correctly. However, it was significantly higher than that only 12 months ago. The crash that has been associated with the global economic crisis has been dramatic. Indeed, probably one year ago most people were still thinking in boom terms. It caught everybody, including me, by surprise. Many people had predicted a continuation of the boom; very few people had predicted the crash that we are experiencing at present. As a consequence, the state government can do very little in any real sense to save the mining industry. However, I remind the member that the mining industry is very resilient. It has gone through ups and downs over the entire history of the mining industry in Western Australia. In my experience, I have been associated with five mining operations that closed down for a number of reasons—sometimes because the ore body ran out and sometimes because the economic circumstances were such that the mine could not operate. I do not think the Labor Party is suggesting that the state government should say to BHP Billiton Ltd that it will subsidise the operation of the Ravensthorpe nickel operation. I do not know whether that is what the Labor Party is saying, but if it is, it should say so. I would be very interested to know whether that is the attitude of the opposition. Interestingly, a question was asked earlier today about how many employees had lost their jobs in Western Australia. I think about 4 700 employees in the mining industry is the best estimate at the moment. However, I know that a large number of those people have been re-employed in other operations. It was not all that long ago that the biggest problem facing the mining industry was a serious shortage of labour, to the point at which the cost of doing business in the mining industry was in excess of what it should have been, with workers being paid very high salaries at great expense to companies. There is a balancing out of the labour market in the mining industry, and, in the long term, that might not be altogether a bad thing. However, for the time being, we regret that there is a world economic crisis. I am confident, from what I have heard about the Chinese economy, that there will be about eight per cent domestic growth in China this year. One can only hope that in the out years that will go back to the double-digit growth rate that we have experienced in recent times. That will be part of the solution to the situation facing the mining industry in Western Australia.
Hon Paul Llewellyn interjected. Hon NORMAN MOORE : Sorry; I thought that is what the member was suggesting in his interjection. Hon Paul Llewellyn : We are suggesting that a green new deal might help provide you with a plan. Hon NORMAN MOORE : A green new deal? Why does the member not send it up? I am happy to listen to anything that anyone might like to suggest. However, based on past performance, I do not know that it is something we would necessarily accept with both arms wide open. The honourable member who asked the question wanted to know what the state government can do to save the mining industry from the global economic crisis. I suspect that it can probably do very little. The problem that we face in the world, which is unprecedented in modern history, is such that the demand for resources and commodities from Western Australia has diminished. Indeed, prices also have diminished. The supply and demand situation for our commodities is now out of kilter. A lot of mining companies are finding it difficult to operate with the prices that are available in the world market at present. A classic case is nickel. The world price of nickel is at a very low level; it is about $US3 a pound, if my memory serves me correctly. However, it was significantly higher than that only 12 months ago. The crash that has been associated with the global economic crisis has been dramatic. Indeed, probably one year ago most people were still thinking in boom terms. It caught everybody, including me, by surprise. Many people had predicted a continuation of the boom; very few people had predicted the crash that we are experiencing at present. As a consequence, the state government can do very little in any real sense to save the mining industry. However, I remind the member that the mining industry is very resilient. It has gone through ups and downs over the entire history of the mining industry in Western Australia. In my experience, I have been associated with five mining operations that closed down for a number of reasons—sometimes because the ore body ran out and sometimes because the economic circumstances were such that the mine could not operate. I do not think the Labor Party is suggesting that the state government should say to BHP Billiton Ltd that it will subsidise the operation of the Ravensthorpe nickel operation. I do not know whether that is what the Labor Party is saying, but if it is, it should say so. I would be very interested to know whether that is the attitude of the opposition. Interestingly, a question was asked earlier today about how many employees had lost their jobs in Western Australia. I think about 4 700 employees in the mining industry is the best estimate at the moment. However, I know that a large number of those people have been re-employed in other operations. It was not all that long ago that the biggest problem facing the mining industry was a serious shortage of labour, to the point at which the cost of doing business in the mining industry was in excess of what it should have been, with workers being paid very high salaries at great expense to companies. There is a balancing out of the labour market in the mining industry, and, in the long term, that might not be altogether a bad thing. However, for the time being, we regret that there is a world economic crisis. I am confident, from what I have heard about the Chinese economy, that there will be about eight per cent domestic growth in China this year. One can only hope that in the out years that will go back to the double-digit growth rate that we have experienced in recent times. That will be part of the solution to the situation facing the mining industry in Western Australia.
Hon NORMAN MOORE : Sorry; I thought that is what the member was suggesting in his interjection. Hon Paul Llewellyn : We are suggesting that a green new deal might help provide you with a plan. Hon NORMAN MOORE : A green new deal? Why does the member not send it up? I am happy to listen to anything that anyone might like to suggest. However, based on past performance, I do not know that it is something we would necessarily accept with both arms wide open. The honourable member who asked the question wanted to know what the state government can do to save the mining industry from the global economic crisis. I suspect that it can probably do very little. The problem that we face in the world, which is unprecedented in modern history, is such that the demand for resources and commodities from Western Australia has diminished. Indeed, prices also have diminished. The supply and demand situation for our commodities is now out of kilter. A lot of mining companies are finding it difficult to operate with the prices that are available in the world market at present. A classic case is nickel. The world price of nickel is at a very low level; it is about $US3 a pound, if my memory serves me correctly. However, it was significantly higher than that only 12 months ago. The crash that has been associated with the global economic crisis has been dramatic. Indeed, probably one year ago most people were still thinking in boom terms. It caught everybody, including me, by surprise. Many people had predicted a continuation of the boom; very few people had predicted the crash that we are experiencing at present. As a consequence, the state government can do very little in any real sense to save the mining industry. However, I remind the member that the mining industry is very resilient. It has gone through ups and downs over the entire history of the mining industry in Western Australia. In my experience, I have been associated with five mining operations that closed down for a number of reasons—sometimes because the ore body ran out and sometimes because the economic circumstances were such that the mine could not operate. I do not think the Labor Party is suggesting that the state government should say to BHP Billiton Ltd that it will subsidise the operation of the Ravensthorpe nickel operation. I do not know whether that is what the Labor Party is saying, but if it is, it should say so. I would be very interested to know whether that is the attitude of the opposition. Interestingly, a question was asked earlier today about how many employees had lost their jobs in Western Australia. I think about 4 700 employees in the mining industry is the best estimate at the moment. However, I know that a large number of those people have been re-employed in other operations. It was not all that long ago that the biggest problem facing the mining industry was a serious shortage of labour, to the point at which the cost of doing business in the mining industry was in excess of what it should have been, with workers being paid very high salaries at great expense to companies. There is a balancing out of the labour market in the mining industry, and, in the long term, that might not be altogether a bad thing. However, for the time being, we regret that there is a world economic crisis. I am confident, from what I have heard about the Chinese economy, that there will be about eight per cent domestic growth in China this year. One can only hope that in the out years that will go back to the double-digit growth rate that we have experienced in recent times. That will be part of the solution to the situation facing the mining industry in Western Australia.
Hon Paul Llewellyn : We are suggesting that a green new deal might help provide you with a plan. Hon NORMAN MOORE : A green new deal? Why does the member not send it up? I am happy to listen to anything that anyone might like to suggest. However, based on past performance, I do not know that it is something we would necessarily accept with both arms wide open. The honourable member who asked the question wanted to know what the state government can do to save the mining industry from the global economic crisis. I suspect that it can probably do very little. The problem that we face in the world, which is unprecedented in modern history, is such that the demand for resources and commodities from Western Australia has diminished. Indeed, prices also have diminished. The supply and demand situation for our commodities is now out of kilter. A lot of mining companies are finding it difficult to operate with the prices that are available in the world market at present. A classic case is nickel. The world price of nickel is at a very low level; it is about $US3 a pound, if my memory serves me correctly. However, it was significantly higher than that only 12 months ago. The crash that has been associated with the global economic crisis has been dramatic. Indeed, probably one year ago most people were still thinking in boom terms. It caught everybody, including me, by surprise. Many people had predicted a continuation of the boom; very few people had predicted the crash that we are experiencing at present. As a consequence, the state government can do very little in any real sense to save the mining industry. However, I remind the member that the mining industry is very resilient. It has gone through ups and downs over the entire history of the mining industry in Western Australia. In my experience, I have been associated with five mining operations that closed down for a number of reasons—sometimes because the ore body ran out and sometimes because the economic circumstances were such that the mine could not operate. I do not think the Labor Party is suggesting that the state government should say to BHP Billiton Ltd that it will subsidise the operation of the Ravensthorpe nickel operation. I do not know whether that is what the Labor Party is saying, but if it is, it should say so. I would be very interested to know whether that is the attitude of the opposition. Interestingly, a question was asked earlier today about how many employees had lost their jobs in Western Australia. I think about 4 700 employees in the mining industry is the best estimate at the moment. However, I know that a large number of those people have been re-employed in other operations. It was not all that long ago that the biggest problem facing the mining industry was a serious shortage of labour, to the point at which the cost of doing business in the mining industry was in excess of what it should have been, with workers being paid very high salaries at great expense to companies. There is a balancing out of the labour market in the mining industry, and, in the long term, that might not be altogether a bad thing. However, for the time being, we regret that there is a world economic crisis. I am confident, from what I have heard about the Chinese economy, that there will be about eight per cent domestic growth in China this year. One can only hope that in the out years that will go back to the double-digit growth rate that we have experienced in recent times. That will be part of the solution to the situation facing the mining industry in Western Australia.
Hon NORMAN MOORE : A green new deal? Why does the member not send it up? I am happy to listen to anything that anyone might like to suggest. However, based on past performance, I do not know that it is something we would necessarily accept with both arms wide open. The honourable member who asked the question wanted to know what the state government can do to save the mining industry from the global economic crisis. I suspect that it can probably do very little. The problem that we face in the world, which is unprecedented in modern history, is such that the demand for resources and commodities from Western Australia has diminished. Indeed, prices also have diminished. The supply and demand situation for our commodities is now out of kilter. A lot of mining companies are finding it difficult to operate with the prices that are available in the world market at present. A classic case is nickel. The world price of nickel is at a very low level; it is about $US3 a pound, if my memory serves me correctly. However, it was significantly higher than that only 12 months ago. The crash that has been associated with the global economic crisis has been dramatic. Indeed, probably one year ago most people were still thinking in boom terms. It caught everybody, including me, by surprise. Many people had predicted a continuation of the boom; very few people had predicted the crash that we are experiencing at present. As a consequence, the state government can do very little in any real sense to save the mining industry. However, I remind the member that the mining industry is very resilient. It has gone through ups and downs over the entire history of the mining industry in Western Australia. In my experience, I have been associated with five mining operations that closed down for a number of reasons—sometimes because the ore body ran out and sometimes because the economic circumstances were such that the mine could not operate. I do not think the Labor Party is suggesting that the state government should say to BHP Billiton Ltd that it will subsidise the operation of the Ravensthorpe nickel operation. I do not know whether that is what the Labor Party is saying, but if it is, it should say so. I would be very interested to know whether that is the attitude of the opposition. Interestingly, a question was asked earlier today about how many employees had lost their jobs in Western Australia. I think about 4 700 employees in the mining industry is the best estimate at the moment. However, I know that a large number of those people have been re-employed in other operations. It was not all that long ago that the biggest problem facing the mining industry was a serious shortage of labour, to the point at which the cost of doing business in the mining industry was in excess of what it should have been, with workers being paid very high salaries at great expense to companies. There is a balancing out of the labour market in the mining industry, and, in the long term, that might not be altogether a bad thing. However, for the time being, we regret that there is a world economic crisis. I am confident, from what I have heard about the Chinese economy, that there will be about eight per cent domestic growth in China this year. One can only hope that in the out years that will go back to the double-digit growth rate that we have experienced in recent times. That will be part of the solution to the situation facing the mining industry in Western Australia.
The honourable member who asked the question wanted to know what the state government can do to save the mining industry from the global economic crisis. I suspect that it can probably do very little. The problem that we face in the world, which is unprecedented in modern history, is such that the demand for resources and commodities from Western Australia has diminished. Indeed, prices also have diminished. The supply and demand situation for our commodities is now out of kilter. A lot of mining companies are finding it difficult to operate with the prices that are available in the world market at present. A classic case is nickel. The world price of nickel is at a very low level; it is about $US3 a pound, if my memory serves me correctly. However, it was significantly higher than that only 12 months ago. The crash that has been associated with the global economic crisis has been dramatic. Indeed, probably one year ago most people were still thinking in boom terms. It caught everybody, including me, by surprise. Many people had predicted a continuation of the boom; very few people had predicted the crash that we are experiencing at present. As a consequence, the state government can do very little in any real sense to save the mining industry. However, I remind the member that the mining industry is very resilient. It has gone through ups and downs over the entire history of the mining industry in Western Australia. In my experience, I have been associated with five mining operations that closed down for a number of reasons—sometimes because the ore body ran out and sometimes because the economic circumstances were such that the mine could not operate. I do not think the Labor Party is suggesting that the state government should say to BHP Billiton Ltd that it will subsidise the operation of the Ravensthorpe nickel operation. I do not know whether that is what the Labor Party is saying, but if it is, it should say so. I would be very interested to know whether that is the attitude of the opposition. Interestingly, a question was asked earlier today about how many employees had lost their jobs in Western Australia. I think about 4 700 employees in the mining industry is the best estimate at the moment. However, I know that a large number of those people have been re-employed in other operations. It was not all that long ago that the biggest problem facing the mining industry was a serious shortage of labour, to the point at which the cost of doing business in the mining industry was in excess of what it should have been, with workers being paid very high salaries at great expense to companies. There is a balancing out of the labour market in the mining industry, and, in the long term, that might not be altogether a bad thing. However, for the time being, we regret that there is a world economic crisis. I am confident, from what I have heard about the Chinese economy, that there will be about eight per cent domestic growth in China this year. One can only hope that in the out years that will go back to the double-digit growth rate that we have experienced in recent times. That will be part of the solution to the situation facing the mining industry in Western Australia.
Interestingly, a question was asked earlier today about how many employees had lost their jobs in Western Australia. I think about 4 700 employees in the mining industry is the best estimate at the moment. However, I know that a large number of those people have been re-employed in other operations. It was not all that long ago that the biggest problem facing the mining industry was a serious shortage of labour, to the point at which the cost of doing business in the mining industry was in excess of what it should have been, with workers being paid very high salaries at great expense to companies. There is a balancing out of the labour market in the mining industry, and, in the long term, that might not be altogether a bad thing. However, for the time being, we regret that there is a world economic crisis. I am confident, from what I have heard about the Chinese economy, that there will be about eight per cent domestic growth in China this year. One can only hope that in the out years that will go back to the double-digit growth rate that we have experienced in recent times. That will be part of the solution to the situation facing the mining industry in Western Australia.
(1) What can be done to mitigate these job losses and assist the mining industry to keep existing mines open? (2) What is the minister’s strategy to mitigate these job losses and assist the mining industry to keep existing mines open? Hon NORMAN MOORE replied: I thank the member for the question. (1)-(2) I suspect that the Greens (WA) might be quite comfortable with what is happening in Western Australia at present. Hon Paul Llewellyn interjected. Hon NORMAN MOORE : Sorry; I thought that is what the member was suggesting in his interjection. Hon Paul Llewellyn : We are suggesting that a green new deal might help provide you with a plan. Hon NORMAN MOORE : A green new deal? Why does the member not send it up? I am happy to listen to anything that anyone might like to suggest. However, based on past performance, I do not know that it is something we would necessarily accept with both arms wide open. The honourable member who asked the question wanted to know what the state government can do to save the mining industry from the global economic crisis. I suspect that it can probably do very little. The problem that we face in the world, which is unprecedented in modern history, is such that the demand for resources and commodities from Western Australia has diminished. Indeed, prices also have diminished. The supply and demand situation for our commodities is now out of kilter. A lot of mining companies are finding it difficult to operate with the prices that are available in the world market at present. A classic case is nickel. The world price of nickel is at a very low level; it is about $US3 a pound, if my memory serves me correctly. However, it was significantly higher than that only 12 months ago. The crash that has been associated with the global economic crisis has been dramatic. Indeed, probably one year ago most people were still thinking in boom terms. It caught everybody, including me, by surprise. Many people had predicted a continuation of the boom; very few people had predicted the crash that we are experiencing at present. As a consequence, the state government can do very little in any real sense to save the mining industry. However, I remind the member that the mining industry is very resilient. It has gone through ups and downs over the entire history of the mining industry in Western Australia. In my experience, I have been associated with five mining operations that closed down for a number of reasons—sometimes because the ore body ran out and sometimes because the economic circumstances were such that the mine could not operate. I do not think the Labor Party is suggesting that the state government should say to BHP Billiton Ltd that it will subsidise the operation of the Ravensthorpe nickel operation. I do not know whether that is what the Labor Party is saying, but if it is, it should say so. I would be very interested to know whether that is the attitude of the opposition. Interestingly, a question was asked earlier today about how many employees had lost their jobs in Western Australia. I think about 4 700 employees in the mining industry is the best estimate at the moment. However, I know that a large number of those people have been re-employed in other operations. It was not all that long ago that the biggest problem facing the mining industry was a serious shortage of labour, to the point at which the cost of doing business in the mining industry was in excess of what it should have been, with workers being paid very high salaries at great expense to companies. There is a balancing out of the labour market in the mining industry, and, in the long term, that might not be altogether a bad thing. However, for the time being, we regret that there is a world economic crisis. I am confident, from what I have heard about the Chinese economy, that there will be about eight per cent domestic growth in China this year. One can only hope that in the out years that will go back to the double-digit growth rate that we have experienced in recent times. That will be part of the solution to the situation facing the mining industry in Western Australia.
(2) What is the minister’s strategy to mitigate these job losses and assist the mining industry to keep existing mines open? Hon NORMAN MOORE replied: I thank the member for the question. (1)-(2) I suspect that the Greens (WA) might be quite comfortable with what is happening in Western Australia at present. Hon Paul Llewellyn interjected. Hon NORMAN MOORE : Sorry; I thought that is what the member was suggesting in his interjection. Hon Paul Llewellyn : We are suggesting that a green new deal might help provide you with a plan. Hon NORMAN MOORE : A green new deal? Why does the member not send it up? I am happy to listen to anything that anyone might like to suggest. However, based on past performance, I do not know that it is something we would necessarily accept with both arms wide open. The honourable member who asked the question wanted to know what the state government can do to save the mining industry from the global economic crisis. I suspect that it can probably do very little. The problem that we face in the world, which is unprecedented in modern history, is such that the demand for resources and commodities from Western Australia has diminished. Indeed, prices also have diminished. The supply and demand situation for our commodities is now out of kilter. A lot of mining companies are finding it difficult to operate with the prices that are available in the world market at present. A classic case is nickel. The world price of nickel is at a very low level; it is about $US3 a pound, if my memory serves me correctly. However, it was significantly higher than that only 12 months ago. The crash that has been associated with the global economic crisis has been dramatic. Indeed, probably one year ago most people were still thinking in boom terms. It caught everybody, including me, by surprise. Many people had predicted a continuation of the boom; very few people had predicted the crash that we are experiencing at present. As a consequence, the state government can do very little in any real sense to save the mining industry. However, I remind the member that the mining industry is very resilient. It has gone through ups and downs over the entire history of the mining industry in Western Australia. In my experience, I have been associated with five mining operations that closed down for a number of reasons—sometimes because the ore body ran out and sometimes because the economic circumstances were such that the mine could not operate. I do not think the Labor Party is suggesting that the state government should say to BHP Billiton Ltd that it will subsidise the operation of the Ravensthorpe nickel operation. I do not know whether that is what the Labor Party is saying, but if it is, it should say so. I would be very interested to know whether that is the attitude of the opposition. Interestingly, a question was asked earlier today about how many employees had lost their jobs in Western Australia. I think about 4 700 employees in the mining industry is the best estimate at the moment. However, I know that a large number of those people have been re-employed in other operations. It was not all that long ago that the biggest problem facing the mining industry was a serious shortage of labour, to the point at which the cost of doing business in the mining industry was in excess of what it should have been, with workers being paid very high salaries at great expense to companies. There is a balancing out of the labour market in the mining industry, and, in the long term, that might not be altogether a bad thing. However, for the time being, we regret that there is a world economic crisis. I am confident, from what I have heard about the Chinese economy, that there will be about eight per cent domestic growth in China this year. One can only hope that in the out years that will go back to the double-digit growth rate that we have experienced in recent times. That will be part of the solution to the situation facing the mining industry in Western Australia.
Hon NORMAN MOORE replied: I thank the member for the question. (1)-(2) I suspect that the Greens (WA) might be quite comfortable with what is happening in Western Australia at present. Hon Paul Llewellyn interjected. Hon NORMAN MOORE : Sorry; I thought that is what the member was suggesting in his interjection. Hon Paul Llewellyn : We are suggesting that a green new deal might help provide you with a plan. Hon NORMAN MOORE : A green new deal? Why does the member not send it up? I am happy to listen to anything that anyone might like to suggest. However, based on past performance, I do not know that it is something we would necessarily accept with both arms wide open. The honourable member who asked the question wanted to know what the state government can do to save the mining industry from the global economic crisis. I suspect that it can probably do very little. The problem that we face in the world, which is unprecedented in modern history, is such that the demand for resources and commodities from Western Australia has diminished. Indeed, prices also have diminished. The supply and demand situation for our commodities is now out of kilter. A lot of mining companies are finding it difficult to operate with the prices that are available in the world market at present. A classic case is nickel. The world price of nickel is at a very low level; it is about $US3 a pound, if my memory serves me correctly. However, it was significantly higher than that only 12 months ago. The crash that has been associated with the global economic crisis has been dramatic. Indeed, probably one year ago most people were still thinking in boom terms. It caught everybody, including me, by surprise. Many people had predicted a continuation of the boom; very few people had predicted the crash that we are experiencing at present. As a consequence, the state government can do very little in any real sense to save the mining industry. However, I remind the member that the mining industry is very resilient. It has gone through ups and downs over the entire history of the mining industry in Western Australia. In my experience, I have been associated with five mining operations that closed down for a number of reasons—sometimes because the ore body ran out and sometimes because the economic circumstances were such that the mine could not operate. I do not think the Labor Party is suggesting that the state government should say to BHP Billiton Ltd that it will subsidise the operation of the Ravensthorpe nickel operation. I do not know whether that is what the Labor Party is saying, but if it is, it should say so. I would be very interested to know whether that is the attitude of the opposition. Interestingly, a question was asked earlier today about how many employees had lost their jobs in Western Australia. I think about 4 700 employees in the mining industry is the best estimate at the moment. However, I know that a large number of those people have been re-employed in other operations. It was not all that long ago that the biggest problem facing the mining industry was a serious shortage of labour, to the point at which the cost of doing business in the mining industry was in excess of what it should have been, with workers being paid very high salaries at great expense to companies. There is a balancing out of the labour market in the mining industry, and, in the long term, that might not be altogether a bad thing. However, for the time being, we regret that there is a world economic crisis. I am confident, from what I have heard about the Chinese economy, that there will be about eight per cent domestic growth in China this year. One can only hope that in the out years that will go back to the double-digit growth rate that we have experienced in recent times. That will be part of the solution to the situation facing the mining industry in Western Australia.
I thank the member for the question. (1)-(2) I suspect that the Greens (WA) might be quite comfortable with what is happening in Western Australia at present. Hon Paul Llewellyn interjected. Hon NORMAN MOORE : Sorry; I thought that is what the member was suggesting in his interjection. Hon Paul Llewellyn : We are suggesting that a green new deal might help provide you with a plan. Hon NORMAN MOORE : A green new deal? Why does the member not send it up? I am happy to listen to anything that anyone might like to suggest. However, based on past performance, I do not know that it is something we would necessarily accept with both arms wide open. The honourable member who asked the question wanted to know what the state government can do to save the mining industry from the global economic crisis. I suspect that it can probably do very little. The problem that we face in the world, which is unprecedented in modern history, is such that the demand for resources and commodities from Western Australia has diminished. Indeed, prices also have diminished. The supply and demand situation for our commodities is now out of kilter. A lot of mining companies are finding it difficult to operate with the prices that are available in the world market at present. A classic case is nickel. The world price of nickel is at a very low level; it is about $US3 a pound, if my memory serves me correctly. However, it was significantly higher than that only 12 months ago. The crash that has been associated with the global economic crisis has been dramatic. Indeed, probably one year ago most people were still thinking in boom terms. It caught everybody, including me, by surprise. Many people had predicted a continuation of the boom; very few people had predicted the crash that we are experiencing at present. As a consequence, the state government can do very little in any real sense to save the mining industry. However, I remind the member that the mining industry is very resilient. It has gone through ups and downs over the entire history of the mining industry in Western Australia. In my experience, I have been associated with five mining operations that closed down for a number of reasons—sometimes because the ore body ran out and sometimes because the economic circumstances were such that the mine could not operate. I do not think the Labor Party is suggesting that the state government should say to BHP Billiton Ltd that it will subsidise the operation of the Ravensthorpe nickel operation. I do not know whether that is what the Labor Party is saying, but if it is, it should say so. I would be very interested to know whether that is the attitude of the opposition. Interestingly, a question was asked earlier today about how many employees had lost their jobs in Western Australia. I think about 4 700 employees in the mining industry is the best estimate at the moment. However, I know that a large number of those people have been re-employed in other operations. It was not all that long ago that the biggest problem facing the mining industry was a serious shortage of labour, to the point at which the cost of doing business in the mining industry was in excess of what it should have been, with workers being paid very high salaries at great expense to companies. There is a balancing out of the labour market in the mining industry, and, in the long term, that might not be altogether a bad thing. However, for the time being, we regret that there is a world economic crisis. I am confident, from what I have heard about the Chinese economy, that there will be about eight per cent domestic growth in China this year. One can only hope that in the out years that will go back to the double-digit growth rate that we have experienced in recent times. That will be part of the solution to the situation facing the mining industry in Western Australia.
(1)-(2) I suspect that the Greens (WA) might be quite comfortable with what is happening in Western Australia at present. Hon Paul Llewellyn interjected. Hon NORMAN MOORE : Sorry; I thought that is what the member was suggesting in his interjection. Hon Paul Llewellyn : We are suggesting that a green new deal might help provide you with a plan. Hon NORMAN MOORE : A green new deal? Why does the member not send it up? I am happy to listen to anything that anyone might like to suggest. However, based on past performance, I do not know that it is something we would necessarily accept with both arms wide open. The honourable member who asked the question wanted to know what the state government can do to save the mining industry from the global economic crisis. I suspect that it can probably do very little. The problem that we face in the world, which is unprecedented in modern history, is such that the demand for resources and commodities from Western Australia has diminished. Indeed, prices also have diminished. The supply and demand situation for our commodities is now out of kilter. A lot of mining companies are finding it difficult to operate with the prices that are available in the world market at present. A classic case is nickel. The world price of nickel is at a very low level; it is about $US3 a pound, if my memory serves me correctly. However, it was significantly higher than that only 12 months ago. The crash that has been associated with the global economic crisis has been dramatic. Indeed, probably one year ago most people were still thinking in boom terms. It caught everybody, including me, by surprise. Many people had predicted a continuation of the boom; very few people had predicted the crash that we are experiencing at present. As a consequence, the state government can do very little in any real sense to save the mining industry. However, I remind the member that the mining industry is very resilient. It has gone through ups and downs over the entire history of the mining industry in Western Australia. In my experience, I have been associated with five mining operations that closed down for a number of reasons—sometimes because the ore body ran out and sometimes because the economic circumstances were such that the mine could not operate. I do not think the Labor Party is suggesting that the state government should say to BHP Billiton Ltd that it will subsidise the operation of the Ravensthorpe nickel operation. I do not know whether that is what the Labor Party is saying, but if it is, it should say so. I would be very interested to know whether that is the attitude of the opposition. Interestingly, a question was asked earlier today about how many employees had lost their jobs in Western Australia. I think about 4 700 employees in the mining industry is the best estimate at the moment. However, I know that a large number of those people have been re-employed in other operations. It was not all that long ago that the biggest problem facing the mining industry was a serious shortage of labour, to the point at which the cost of doing business in the mining industry was in excess of what it should have been, with workers being paid very high salaries at great expense to companies. There is a balancing out of the labour market in the mining industry, and, in the long term, that might not be altogether a bad thing. However, for the time being, we regret that there is a world economic crisis. I am confident, from what I have heard about the Chinese economy, that there will be about eight per cent domestic growth in China this year. One can only hope that in the out years that will go back to the double-digit growth rate that we have experienced in recent times. That will be part of the solution to the situation facing the mining industry in Western Australia.
Hon Paul Llewellyn interjected. Hon NORMAN MOORE : Sorry; I thought that is what the member was suggesting in his interjection. Hon Paul Llewellyn : We are suggesting that a green new deal might help provide you with a plan. Hon NORMAN MOORE : A green new deal? Why does the member not send it up? I am happy to listen to anything that anyone might like to suggest. However, based on past performance, I do not know that it is something we would necessarily accept with both arms wide open. The honourable member who asked the question wanted to know what the state government can do to save the mining industry from the global economic crisis. I suspect that it can probably do very little. The problem that we face in the world, which is unprecedented in modern history, is such that the demand for resources and commodities from Western Australia has diminished. Indeed, prices also have diminished. The supply and demand situation for our commodities is now out of kilter. A lot of mining companies are finding it difficult to operate with the prices that are available in the world market at present. A classic case is nickel. The world price of nickel is at a very low level; it is about $US3 a pound, if my memory serves me correctly. However, it was significantly higher than that only 12 months ago. The crash that has been associated with the global economic crisis has been dramatic. Indeed, probably one year ago most people were still thinking in boom terms. It caught everybody, including me, by surprise. Many people had predicted a continuation of the boom; very few people had predicted the crash that we are experiencing at present. As a consequence, the state government can do very little in any real sense to save the mining industry. However, I remind the member that the mining industry is very resilient. It has gone through ups and downs over the entire history of the mining industry in Western Australia. In my experience, I have been associated with five mining operations that closed down for a number of reasons—sometimes because the ore body ran out and sometimes because the economic circumstances were such that the mine could not operate. I do not think the Labor Party is suggesting that the state government should say to BHP Billiton Ltd that it will subsidise the operation of the Ravensthorpe nickel operation. I do not know whether that is what the Labor Party is saying, but if it is, it should say so. I would be very interested to know whether that is the attitude of the opposition. Interestingly, a question was asked earlier today about how many employees had lost their jobs in Western Australia. I think about 4 700 employees in the mining industry is the best estimate at the moment. However, I know that a large number of those people have been re-employed in other operations. It was not all that long ago that the biggest problem facing the mining industry was a serious shortage of labour, to the point at which the cost of doing business in the mining industry was in excess of what it should have been, with workers being paid very high salaries at great expense to companies. There is a balancing out of the labour market in the mining industry, and, in the long term, that might not be altogether a bad thing. However, for the time being, we regret that there is a world economic crisis. I am confident, from what I have heard about the Chinese economy, that there will be about eight per cent domestic growth in China this year. One can only hope that in the out years that will go back to the double-digit growth rate that we have experienced in recent times. That will be part of the solution to the situation facing the mining industry in Western Australia.
Hon NORMAN MOORE : Sorry; I thought that is what the member was suggesting in his interjection. Hon Paul Llewellyn : We are suggesting that a green new deal might help provide you with a plan. Hon NORMAN MOORE : A green new deal? Why does the member not send it up? I am happy to listen to anything that anyone might like to suggest. However, based on past performance, I do not know that it is something we would necessarily accept with both arms wide open. The honourable member who asked the question wanted to know what the state government can do to save the mining industry from the global economic crisis. I suspect that it can probably do very little. The problem that we face in the world, which is unprecedented in modern history, is such that the demand for resources and commodities from Western Australia has diminished. Indeed, prices also have diminished. The supply and demand situation for our commodities is now out of kilter. A lot of mining companies are finding it difficult to operate with the prices that are available in the world market at present. A classic case is nickel. The world price of nickel is at a very low level; it is about $US3 a pound, if my memory serves me correctly. However, it was significantly higher than that only 12 months ago. The crash that has been associated with the global economic crisis has been dramatic. Indeed, probably one year ago most people were still thinking in boom terms. It caught everybody, including me, by surprise. Many people had predicted a continuation of the boom; very few people had predicted the crash that we are experiencing at present. As a consequence, the state government can do very little in any real sense to save the mining industry. However, I remind the member that the mining industry is very resilient. It has gone through ups and downs over the entire history of the mining industry in Western Australia. In my experience, I have been associated with five mining operations that closed down for a number of reasons—sometimes because the ore body ran out and sometimes because the economic circumstances were such that the mine could not operate. I do not think the Labor Party is suggesting that the state government should say to BHP Billiton Ltd that it will subsidise the operation of the Ravensthorpe nickel operation. I do not know whether that is what the Labor Party is saying, but if it is, it should say so. I would be very interested to know whether that is the attitude of the opposition. Interestingly, a question was asked earlier today about how many employees had lost their jobs in Western Australia. I think about 4 700 employees in the mining industry is the best estimate at the moment. However, I know that a large number of those people have been re-employed in other operations. It was not all that long ago that the biggest problem facing the mining industry was a serious shortage of labour, to the point at which the cost of doing business in the mining industry was in excess of what it should have been, with workers being paid very high salaries at great expense to companies. There is a balancing out of the labour market in the mining industry, and, in the long term, that might not be altogether a bad thing. However, for the time being, we regret that there is a world economic crisis. I am confident, from what I have heard about the Chinese economy, that there will be about eight per cent domestic growth in China this year. One can only hope that in the out years that will go back to the double-digit growth rate that we have experienced in recent times. That will be part of the solution to the situation facing the mining industry in Western Australia.
Hon Paul Llewellyn : We are suggesting that a green new deal might help provide you with a plan. Hon NORMAN MOORE : A green new deal? Why does the member not send it up? I am happy to listen to anything that anyone might like to suggest. However, based on past performance, I do not know that it is something we would necessarily accept with both arms wide open. The honourable member who asked the question wanted to know what the state government can do to save the mining industry from the global economic crisis. I suspect that it can probably do very little. The problem that we face in the world, which is unprecedented in modern history, is such that the demand for resources and commodities from Western Australia has diminished. Indeed, prices also have diminished. The supply and demand situation for our commodities is now out of kilter. A lot of mining companies are finding it difficult to operate with the prices that are available in the world market at present. A classic case is nickel. The world price of nickel is at a very low level; it is about $US3 a pound, if my memory serves me correctly. However, it was significantly higher than that only 12 months ago. The crash that has been associated with the global economic crisis has been dramatic. Indeed, probably one year ago most people were still thinking in boom terms. It caught everybody, including me, by surprise. Many people had predicted a continuation of the boom; very few people had predicted the crash that we are experiencing at present. As a consequence, the state government can do very little in any real sense to save the mining industry. However, I remind the member that the mining industry is very resilient. It has gone through ups and downs over the entire history of the mining industry in Western Australia. In my experience, I have been associated with five mining operations that closed down for a number of reasons—sometimes because the ore body ran out and sometimes because the economic circumstances were such that the mine could not operate. I do not think the Labor Party is suggesting that the state government should say to BHP Billiton Ltd that it will subsidise the operation of the Ravensthorpe nickel operation. I do not know whether that is what the Labor Party is saying, but if it is, it should say so. I would be very interested to know whether that is the attitude of the opposition. Interestingly, a question was asked earlier today about how many employees had lost their jobs in Western Australia. I think about 4 700 employees in the mining industry is the best estimate at the moment. However, I know that a large number of those people have been re-employed in other operations. It was not all that long ago that the biggest problem facing the mining industry was a serious shortage of labour, to the point at which the cost of doing business in the mining industry was in excess of what it should have been, with workers being paid very high salaries at great expense to companies. There is a balancing out of the labour market in the mining industry, and, in the long term, that might not be altogether a bad thing. However, for the time being, we regret that there is a world economic crisis. I am confident, from what I have heard about the Chinese economy, that there will be about eight per cent domestic growth in China this year. One can only hope that in the out years that will go back to the double-digit growth rate that we have experienced in recent times. That will be part of the solution to the situation facing the mining industry in Western Australia.
Hon NORMAN MOORE : A green new deal? Why does the member not send it up? I am happy to listen to anything that anyone might like to suggest. However, based on past performance, I do not know that it is something we would necessarily accept with both arms wide open. The honourable member who asked the question wanted to know what the state government can do to save the mining industry from the global economic crisis. I suspect that it can probably do very little. The problem that we face in the world, which is unprecedented in modern history, is such that the demand for resources and commodities from Western Australia has diminished. Indeed, prices also have diminished. The supply and demand situation for our commodities is now out of kilter. A lot of mining companies are finding it difficult to operate with the prices that are available in the world market at present. A classic case is nickel. The world price of nickel is at a very low level; it is about $US3 a pound, if my memory serves me correctly. However, it was significantly higher than that only 12 months ago. The crash that has been associated with the global economic crisis has been dramatic. Indeed, probably one year ago most people were still thinking in boom terms. It caught everybody, including me, by surprise. Many people had predicted a continuation of the boom; very few people had predicted the crash that we are experiencing at present. As a consequence, the state government can do very little in any real sense to save the mining industry. However, I remind the member that the mining industry is very resilient. It has gone through ups and downs over the entire history of the mining industry in Western Australia. In my experience, I have been associated with five mining operations that closed down for a number of reasons—sometimes because the ore body ran out and sometimes because the economic circumstances were such that the mine could not operate. I do not think the Labor Party is suggesting that the state government should say to BHP Billiton Ltd that it will subsidise the operation of the Ravensthorpe nickel operation. I do not know whether that is what the Labor Party is saying, but if it is, it should say so. I would be very interested to know whether that is the attitude of the opposition. Interestingly, a question was asked earlier today about how many employees had lost their jobs in Western Australia. I think about 4 700 employees in the mining industry is the best estimate at the moment. However, I know that a large number of those people have been re-employed in other operations. It was not all that long ago that the biggest problem facing the mining industry was a serious shortage of labour, to the point at which the cost of doing business in the mining industry was in excess of what it should have been, with workers being paid very high salaries at great expense to companies. There is a balancing out of the labour market in the mining industry, and, in the long term, that might not be altogether a bad thing. However, for the time being, we regret that there is a world economic crisis. I am confident, from what I have heard about the Chinese economy, that there will be about eight per cent domestic growth in China this year. One can only hope that in the out years that will go back to the double-digit growth rate that we have experienced in recent times. That will be part of the solution to the situation facing the mining industry in Western Australia.
The honourable member who asked the question wanted to know what the state government can do to save the mining industry from the global economic crisis. I suspect that it can probably do very little. The problem that we face in the world, which is unprecedented in modern history, is such that the demand for resources and commodities from Western Australia has diminished. Indeed, prices also have diminished. The supply and demand situation for our commodities is now out of kilter. A lot of mining companies are finding it difficult to operate with the prices that are available in the world market at present. A classic case is nickel. The world price of nickel is at a very low level; it is about $US3 a pound, if my memory serves me correctly. However, it was significantly higher than that only 12 months ago. The crash that has been associated with the global economic crisis has been dramatic. Indeed, probably one year ago most people were still thinking in boom terms. It caught everybody, including me, by surprise. Many people had predicted a continuation of the boom; very few people had predicted the crash that we are experiencing at present. As a consequence, the state government can do very little in any real sense to save the mining industry. However, I remind the member that the mining industry is very resilient. It has gone through ups and downs over the entire history of the mining industry in Western Australia. In my experience, I have been associated with five mining operations that closed down for a number of reasons—sometimes because the ore body ran out and sometimes because the economic circumstances were such that the mine could not operate. I do not think the Labor Party is suggesting that the state government should say to BHP Billiton Ltd that it will subsidise the operation of the Ravensthorpe nickel operation. I do not know whether that is what the Labor Party is saying, but if it is, it should say so. I would be very interested to know whether that is the attitude of the opposition. Interestingly, a question was asked earlier today about how many employees had lost their jobs in Western Australia. I think about 4 700 employees in the mining industry is the best estimate at the moment. However, I know that a large number of those people have been re-employed in other operations. It was not all that long ago that the biggest problem facing the mining industry was a serious shortage of labour, to the point at which the cost of doing business in the mining industry was in excess of what it should have been, with workers being paid very high salaries at great expense to companies. There is a balancing out of the labour market in the mining industry, and, in the long term, that might not be altogether a bad thing. However, for the time being, we regret that there is a world economic crisis. I am confident, from what I have heard about the Chinese economy, that there will be about eight per cent domestic growth in China this year. One can only hope that in the out years that will go back to the double-digit growth rate that we have experienced in recent times. That will be part of the solution to the situation facing the mining industry in Western Australia.
Interestingly, a question was asked earlier today about how many employees had lost their jobs in Western Australia. I think about 4 700 employees in the mining industry is the best estimate at the moment. However, I know that a large number of those people have been re-employed in other operations. It was not all that long ago that the biggest problem facing the mining industry was a serious shortage of labour, to the point at which the cost of doing business in the mining industry was in excess of what it should have been, with workers being paid very high salaries at great expense to companies. There is a balancing out of the labour market in the mining industry, and, in the long term, that might not be altogether a bad thing. However, for the time being, we regret that there is a world economic crisis. I am confident, from what I have heard about the Chinese economy, that there will be about eight per cent domestic growth in China this year. One can only hope that in the out years that will go back to the double-digit growth rate that we have experienced in recent times. That will be part of the solution to the situation facing the mining industry in Western Australia.
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