Lithium Valley Main Report 2018
● ● All “new energy” materials should be considered strategic resources, ● ● All such strategic resources to be tracked for their economic reserves and their trade commitments, ● ● All off-take commitments to be subject to approval to ensure that the ability to satisfy a diversity of domestic and international customers is assured, and ● ● All off-take agreements to include a domestic value-add requirement. 3.3.6. Smart royalties Review the royalties scheme in the light of New Energy metals. This review is needed in order to ensure an equitable return for the State from its New Energy metals, to encourage the supply of strategic resources to Australia and secondary processing in WA, to discourage the exporting of unprocessed resources (especially strategic resources) and to ensure that local job creation is maximized. Resources are finite global commodities and it is further recommended that a review be conducted of comparable jurisdictions to ensure consistency of approach in this rapidly evolving industry as well as to maximize the benefits to the owners of the resources, its citizens. 3.3.7. Incentives Investigate the provision of direct and/or indirect support to strategic industries using New Energy metals. Support for mining and resource development is not without precedence in WA as the state geological survey continues to provide information to resource companies and the oil/gas industry was established through the WA Government’s West Australian Petroleum Pty Ltd and was supported by the take-or-pay contract that brought natural gas south from the Pilbara. Other incentives can be applied to assist companies that are now wanting to establish value-added processing, for example, South Australia offers interest-free loans, payroll tax holidays, direct bulk buying orders and cheap land as incentives for targeted companies. Other Governments offer many more incentives, such as tax holidays, subsidised utilities and light regulations. WA could be more proactive to be more competitive. This approach is widely used around the world including throughout Asia, Europe and the US for attracting high value industry. It could be argued WA is in the minority by not offering such incentives for priority industries. Beyond the provision of subsidies, it is recommended that the State Government establish well- capitalised investment funds to focus on investment in priority companies and industries. These investment funds should be commercially run and sit outside of political interference and political processes. This would be a replacement for grant schemes that are often conservative in fund allocation and are inefficient due to government processing costs. There would also need to be an assessment of State and Federal programs to deliver a more coordinated and seamless approach. 3.3.8. Facilitate governance of the Western Trade Coast and SIP. Establish a dedicated management authority to facilitate development for the WTC and Lithium Valley. Currently, businesses in the WTC deal with a multiple of government departments each with different approvals, monitoring and reporting regimes. Ideally there should be only one body responsible for the Government interface, especially when an SIP is established with a focus on New Energy Industries. This would speed up approvals while also reducing costs and at the same time it would also be expected to improve compliance with regulations. It is recommended and considered critical that a statutory authority or similar be established for the development, management and marketing of new industries in the Western Trade Coast / Specialised Industrial
Page 26
Made with FlippingBook Ebook Creator