A new report belied federal authorities' perennial harping
that the spirited rise of the resources sector keeps the local
economy afloat amidst global declines and pressures from
On the contrary, the Australia Institute (
) said on Thursday that much of the benefits trumpeted by the
Australian government as directly caused by mining activities in
the country were actually reaped by foreign entities, which
operate and own major resources players.
Billions of dollars of profits were actually shipped out of
the country in the same manner that locally produced commodity
products were exported in staggering volumes and pace.
Worst, mining shipments actually fuelled the consistent rise
of the Australian dollar, which according to the AI report titled
'Mining the truth: The rhetoric and reality of the commodities'
only managed to apply pressures on the country's manufacturing
sector that also employs a big chunk of the local workforce.
"Much has been said about the changing face of the mining
industry, where the effects of the boom have been both
substantial and positive ... but until very recently there has
been far less discussion of the impact of the mining boom on the
rest of the economy, including those areas which have suffered as
a result," the AI report revealed.
The report also claimed that so-called spin doctors of key
miners were successful in making it appear that the industry
generates record number of jobs, contributes huge amount to the
federal coffers, kicks up the country's commodity exports and
raises the overall value of market shares.
AI said that many of these claims were actually backed by
federal pronouncements but sufficient data to support the
positive impacts being delivered by mining companies appeared to
inconsistent with available public documents.
Basing on figures provided by the Australian Bureau of
Statistics (ABS), only 1.9 percent of Australian workers were
directly employed by mining companies, which was very far from
the 16 percent estimates gathered in a survey.
Also, the ABS has reported that in fiscal 2009-2010 alone,
miners collected pre-tax profits of more than $51 billion, 83
percent of which were remitted back to parent companies of these
"If these profits were distributed evenly across Australian
households the dividend cheque received by each household would
come to more than $5000," the ABS said.
In the end, only those who are directly connected to mining
activities which can be declared as beneficiaries of the
resources boom while many sectors such as education, property,
manufacturing and tourism suffer due to the abnormal growth of
mining exports that push up the dollar.
The AI report also noted that ordinary Australians were poised
to enjoy some $200 billion revenues over the next 10 years had
the resource super profits tax (RSPT) introduced last year by
former Prime Minister Kevin pushed through.
As it turned out, Mr Rudd was outmanoeuvred by the giant
mining firms, which resulted to his exit and the RSPT's