Mining Leaders Criticise State Dependence on Industry to Build Communities

Mining leaders in Australia want to distinguish the fine line between subsidising rents for medical personnel in hospitals mining firms open in far flung communities and other basic services needed by these areas.

The need for a distinction is the result of an observation by the industry of extraordinary demands placed by Australian states for the government to approve permits. The demands include providing for housing facilities for police officers to be assigned to mining towns.

Although mining firms are open to subsidising rents for medical workers or teachers in alternative hospitals and schools they open, the fine line has been crossed if the state government does not take responsibility for housing their employees and making best use of housing stock, Queensland Resources Council Chief Executive Michael Roche said.

"We are in danger of the magic pudding phenomenon whereby governments continually load up the community service conditions.... What we are keen to do with the next government is have a conversation about who does what," News.com.au quoted Mr Roche.

An example of the pressure on mining firms is BHP Billiton (ASX: BHP) and its partners were required to construct 400 housing units in the Bowen Basin in exchange for approval of the $4-billion Cavil Ridge mine near Moranbah. The partners also provide over $30 million a year in workers' rental assistance and $1 million a year in subsidised accommodation assistance to communication organizations that provide childcare centres, emergency and health services.

Rio Tinto Alcan (ASX: RIO) spent about $500 million since the 1960s for housing, water, sewerage and childcare in Gladstone, the miner claims.

The housing and other incentives are come-on for miners to work in remote mines which are the cash cow of the mining companies.

The BHP complaint was prompted by the state government's plan to rent 91 Community Services homes to BHP in Moranbah, the site of Billiton's coal mining operations. The government is expected to earn $6 million from the lease if it charges up to $1,400 rent per week for each unit.

In a bid to attract more mining firms in the outback, Labour promised $300 million assistance for regional communities over the next four year, while the Liberals said it would invest $130 million in Queensland resource community social infrastructure projects over the next four years through the Resource Community Building Fund.