Web address: http://www.usyd.edu.au/ fasts/
3 April 2000
Senator the Hon. Nick Minchin
Minister for Industry Science and Resources
Parliament House
Canberra
Dear Minister
Economic benefits of exploration
activity, publicly funded geoscience information, and geoscience research in
Australia
Last
August, Peter Cullen discussed with you the issue of funding for AGSO.
The discussion originated from our concern that some science-related
issues were not being addressed with a whole-of-government approach.
Policy changes which may appear logical from one portfolio’s
perspective can be less attractive when taken in the full context of actions in
other portfolio areas. We offered
as an example the effect on the geosciences of a number of unrelated events:
·
the downturn in minerals prices
internationally
·
the failure of two
geoscience-based CRCs to gain funding
·
cuts to universities which have
impinged heavily on geoscience departments
·
reductions in exploration
activities by mining companies
·
reductions in the funding to AGSO
FASTS
suggested an inquiry into the value of the geoscience sector by a group such as
ABARE, and Professor Cullen agreed to write to you on this issue.
We
have held extensive discussions with industry and geoscience bodies over the
draft terms of reference and the matter has taken some time to work through the
proper channels. I am pleased, now,
to be able to set out these draft terms of reference in the context of the
geoscience industry.
As
you are aware the mineral and petroleum resources of Australia are natural
endowments that belong to all Australians.
Governments both State and Federal are custodians of these public assets
and have a responsibility to their constituents to ensure that the latent value
of the endowment is realised for the benefit of its owners, the people of
Australia. During the second half
of the last century the resource industries have made major contributions to the
Australian economy and currently contribute over 45% of the nation’s
merchandise exports.
FASTS
believes that, although we are entering an era where the service sectors of our
economy will grow rapidly, we need to maintain a healthy, resource sector for
the foreseeable future. This
requires a successful exploration industry because eventually all
mines/oilfields are depleted and only with successful exploration will new
resources be discovered to maintain the industry.
Furthermore we will need to be competitive international to attract
exploration investment
We
are concerned that at present there has been no definitive study to estimate the
value and benefits of mineral and petroleum exploration activity in Australia,
our investment in publicly funded geoscience research activities, and geoscience
information provided by State/Territory and the Commonwealth governments to
encourage exploration. In view of
the importance of these industries to Australia we believe it important that
these factors are examined from a socio-economic viewpoint.
We
are therefore writing to recommend that in the 2000/2001 financial year, your
Department commission, through ABARE or a similar provider, fund a study of
these important issues.
We
would suggest the following Terms of Reference:
To estimate the value of:
1) Mineral and petroleum exploration in the context of
the:
a) value of future discoveries resulting from exploration
activity,
b) flow-on economic effects in regional Australia as a result of exploration
activity;
and
c) returns to governments;
2) regional geoscience information provided by the
Commonwealth and the States/NT in the context of encouraging exploration; and
3) publicly funded geoscience research in the context of
developing new ideas/methodologies/innovations that can be applied to assist
the exploration and geoscience service industries and generate wealth for the
nation.
Each of these issues
involve major studies but we believe the results will be very important in the
context of where we invest our public sector research efforts in the future.
Yours
sincerely
Sue
Serjeantson
President.
