THE resource industry is calling for a proper regulatory impact assessment of winding-up sand mining on North Stradbroke Island after a Queensland inquiry found that shutting down the Island’s major economic contributor by 2019 would be premature.

Handing down its report last week, the Queensland Government’s Parliament Finance and Administration Committee recommended the North Stradbroke Island Protection and Sustainability and Other Acts Amendment Bill 2015 and North Stradbroke Island Protection and Sustainability (Renewal of Mining Leases) Amendment Bill 2015 not be passed.

The recommendation marks an important point in a contentious and drawn out battle over when and how sand mining on North Stradbroke Island should end. Current legislation introduced by the former Liberal Government allows for the sand mining operations to continue to 2035.

However, the current Palaszczuk Government wants to bring this forward to 2019 with $20 million funding to support an economic transition.

Sand mining operations on North Stradbroke, run by Sibelco, employs 110 people directly and generates the most economic growth of any industry on the island. Sibelco has argued that transitioning the island’s economy to one primarily reliant on tourism within a three-year timeframe is unrealistic, proposing an alternative end date of 2027 at the latest.

The employer’s view was backed by Deloitte Access Economics, which in a report commissioned by the Department of State Development, estimated the direct economic loss of closing mining by 2019 instead of 2035 could exceed $1 billion.

Having participated in the inquiry’s public hearings earlier this year, AREEA is now calling on the Palaszczuk Government to undertake a proper regulatory impact assessment as a priority.

“It will be shambolic and irresponsible if the Queensland Government does not undertake a full regulatory impact statement to properly assess when and how the North Stradbroke Island community can transition away from one overwhelmingly reliant on sand mining,” said AREEA executive director Scott Barklamb.

“To date this has not occurred, despite sand mining being the Island’s major economic contributor and highest paying employer for six decades.  The people of North Stradbroke Island deserve better than for the state government to guestimate that a measly $20 million is sufficient to offset the sudden termination of sand mining.

“Highly skilled sand mining employees earning six figure salaries deserve better than their state government assuming they can or should become baristas, waiters or take up other tourism-based occupations with no guarantee of full time, continuous employment.

“If the Queensland Government is all about jobs, it is surprising that it would jeopardise hundreds of direct and indirect jobs, and detract from an industry sector that proudly employs a considerable number of Indigenous people.”

AREEA has also reasoned that with North Stradbroke Island being very large, there is nothing stopping proposed development of new tourism facilities concurrently with the gradual winding-down of sand mining over a sensible timeframe – preferably 2035 but certainly no earlier than 2027.

“If the state intends to set a timetable for ceasing sand mining, it must back this up with a thorough, responsible and realistic economic transition plan, a proper impact assessment, and with proper support for North Stradbroke Island and its residents,” Mr Barklamb continues.

Click here to read AREEA’s submission to the North Stradbroke Island Mining Inquiry.
Click here to read AREEA’s additional submission on the Draft Economic Transition Strategy and the Workers Assistance Scheme.

AREEA will continue to keep members up-to-date on this matter, however for a more in-depth briefing at this time, please contact our policy team on 1800 627 771 or [email protected].