Brisbane Economic Series Issue 5: Energy and Resources

brisbaneeconomic seriesissue five: oct 2012 energy and resources

2 BRISB A NE ECONOMIC SERIE S – IS SUE 5: ENER GY A ND RE S OUR CE S

forewordWelcome to the fifth edition of the Brisbane Economic Series, a bi-monthly publication

providing insights into the city’s business, investment and growth opportunities. Australia’s energy and resources sector and how Brisbane can maximise the economic

opportunities it brings to our city will be the focus of this edition.We are fortunate to gain insights from industry leaders Mark Ingham and Ben

Hensmann, Geoff Dickie, Keira Brennan and Ben Willis. Brisbane’s economy is worth $114 billion, of which $25 billion is generated from the

resource industry.Leveraging this industry and building Brisbane’s capacity and reputation as Australia’s

new world city and a leading global resource hub is one of my key priorities. In my latest Economic Development Plan, I have outlined a number of initiatives

to ensure Brisbane remains a competitive global resource hub, attracting talent and investment from this sector.

I have committed to ensuring Council and Brisbane’s economic development agency Brisbane Marketing are actively focussed on growing Brisbane’s reputation in this industry.

Some initiatives I have endorsed include the planning and delivery of infrastructure to meet projected population growth; ensuring Brisbane has the capacity to be a global fly-in-fly-out hub; and proactively encouraging resource companies to choose Brisbane for future investment, head offices and procurement of goods and services.

Brisbane is headquarters to some of the world’s leading mining and energy companies, in fact 170 mining companies are currently based in Greater Brisbane, supporting many other sectors including professional services and technology.

This cluster of mining and energy headquarters represents almost two thirds of the sector in resource-rich Queensland, and underpins the demands of much of Australia and many parts of the world.

Now more than ever the City must harness the major opportunities this sector presents for the future growth of our economy.

Graham Quirk Lord mayor of BrisBane

3 BRISB A NE ECONOMIC SERIE S – IS SUE 5: ENER GY A ND RE S OUR CE S ACK NO W L EDGEMEN T S // CREDI T S

07With ever-advancing technology and an entrepreneurial spirit, mineral explorers will continue to be rewarded by Queensland’s rich lands.

dr Geoff dickie chairman, QueensLand expLoration

counciL

05Queensland’s emergence as a world-leading LNG exporter brings both opportunities and challenges for Brisbane.

mark inGham partner, deLoitte access economics

Ben hensman anaLyst, deLoitte access economics

Issue five


Issue five

14International recruitment in Queensland’s LNG sector to leave strong economic legacy.

Ben WiLLis practice Leader and speciaL counseL, fraGomen

11Common user infrastructure agreements can deliver significant advantages if risks are managed.

keira Brennan partner, cLayton utz

ACK NO W L EDGEMEN T S // CREDI T S


Despite the patchwork nature of the Queensland economy, development expenditure in resources has kept the state’s economy in positive territory this year, bringing both challenges and opportunities. While demand concerns are likely to be prevalent over the short- to medium-term, the longer-term trend of energy demand and industrial transition remains in place, particularly for the economies of India and China. These forces have seen commodity prices rise to unprecedented levels in recent years, leading to an equally unprecedented supply response from market players, particularly in the coal and LNG space. However, construction-related commodities demand is now predicted to grow at a slower rate than in recent years.

The Australian Bureau for Resources and Energy Economics has forecast annual demand for metallurgical coal, thermal coal and gas to grow 2.6%, 3.6% and 1.4%, respectively to 2025, leading to large, long-life projects in Queensland’s key coal and gas basins. The Galilee Basin has received particular attention, due to the sheer size of the proposed projects for the area, as well as the investment required in infrastructure to bring the product to port.

Between 2015 and 2035, the expansion of the gas industry is projected to boost Queensland’s real gross state product by approximately $320 billion (AUD). A key advantage enjoyed by Australia-based LNG exporters is the proximity to Asia: shipping costs are usually lower, particularly compared to the Middle East and the eastern seaboard of the United States.

The four large Queensland CSG-to-LNG plants in Gladstone represent approximately US$78.9 billion in capital expenditure. With a backdrop of increased long term demand from Asia, these projects do face several issues including regulatory delays, feed-in gas supply, cost increases and negative public perceptions around CSG drilling. An additional challenge is the emergence of immense domestic gas supply in the United States, which provides the potential for that country to become a net exporter of LNG. However, domestic demand for CSG as a clean fuel source will also drive growth, particularly for smaller players with less exposure to the CSG-LNG export market. CSG is likely to become the fuel of choice for domestic energy generation, particularly for the traditionally coal-dependent eastern seaboard.

Queensland’s emergence as a world-leading LNG exporter brings both opportunities and challenges for Brisbane.

mark inGham partner, deLoitte access economics

Ben hensman anaLyst, deLoitte access economics


Cost increases, and events such as the scaling back of the Abbot Point coal port expansion to fit the new growth profile will continue to make the news, as will the struggling housing sector. But despite a slowing of Queensland’s recent record breaking project investment, there will be continuing investment in the state. Queensland has a proud history of its economic growth outpacing that of Australia as a whole, and Deloitte projects that broad trend to continue over time. Or, as we often put it, Queensland is on the right side of history, perfectly positioned to sell its resources, tourism, agribusiness and other products into the growth of emerging Asia, which is the dominant driver of today’s business landscape.

It has been suggested that natural gas as a fuel source for power generation will play a role in achieving the Australian Government’s clean energy target of a five percent cut in carbon emissions from 2000 levels by 2020, and an 80 percent cut by 2050.

Despite slowing growth in the resources sector, engineering and construction services will continue to be required. The beneficiaries will be Brisbane-based professional and financial services firms, particularly given the presence in Brisbane of the head offices of many resources firms. In addition to costing, feasibility and legal assistance, resources firms will likely require assistance in developing a response to increasing project costs, especially due to international competition, the strong Australian dollar and lower commodity prices. Given the State’s importance to the seaborne coal industry, Brisbane has become a global resources hub; this global significance has been recognised through the choice of Brisbane as host of the next G-20 Summit.

When discussing the economic strength of Queensland, resources is usually the focal point and understandably so. While the State is well-positioned to serve the growing energy and industrial needs of Asia, another future theme is food security. The global food supply and demand imbalance has been foreshadowed by many: by 2050 the world population will grow by a third and food demand is forecast to increase by 70%. Food demand in Asia is forecast to double by 2050 due to changes in diet (an increasing proportion of protein), increasing affluence (allowing the purchase of more food, and more expensive food), and population growth.

For more information on the Queensland economy, please visit www.deloitte.com/au/queensland_index, or contact: mark ingham Partner, Deloitte Access Economics Phone: +61 (7) 3308 7206 Email: [email protected] Ben hensman Analyst, Deloitte Access Economics Phone: +61 (7) 3308 7389 Email: [email protected]

CSG is likely to become the fuel of choice for domestic energy generation, particularly for the traditionally coal-dependent eastern seaboard.

This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively the “Deloitte Network”) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/au/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Touche Tohmatsu Limited © 2012 Deloitte Touche Tohmatsu

mark ingham is a Partner within Deloitte Access Economics, and is the leader of the Deloitte Brisbane Economics & Infrastructure Advisory business.

Ben hensman is an Analyst within Deloitte Access Economics, and is the Editor of the Deloitte Queensland Index.{

http://www.deloitte.com/au/queensland_index

mailto:[email protected]

mailto:[email protected]


Observing at close quarters the enthusiasm with which more than 6000 delegates embraced the 34th International Geological Congress in Brisbane in August I was reminded of just how far the minerals exploration story has come and how far it has to run in Queensland.

After more than 150 years of statehood and progress anchored to mining and agriculture you could be forgiven for thinking that all Queensland’s minerals and energy wealth has been discovered.

However, that perception denies a host of variables underscoring the dynamic environment in which mineral exploration occurs.

To begin, Queensland is more than 1.7 million sq km, and only a fraction of that has been explored to any meaningful extent.

And by ‘meaningful’, I mean that all its possibilities are known in the context of the era when exploration occurs.

For example, a mineral of marginal or non-economic value 100, 50 or even five years ago could become the most sought-after component in the world for the next wave of technology.

Queensland is more than 1.7 million sq km, and only a fraction of that has been explored to any meaningful extent

With ever-advancing technology and an entrepreneurial spirit, mineral explorers will continue to be rewarded by Queensland’s rich lands.

dr Geoff dickie chairman, QueensLand expLoration

counciL


Silicon makes up more than one quarter of the earth’s crust and started making its most significant contribution as a foundation for modern society in the mid 1950s when it was used to host the first integrated circuit.

Fast forward to the 21st century and the computer-dependent world is looking for a semi-conductor to replace the silicon chip.

Graphene and molybdenite are two of the substances being touted as potential substitutes for silicon. Graphene is derived from carbon and Molybdenite – the most important ore of the metal molybdenum – is available in Queensland in economically demonstrated resources.

Either one of them could become a household name alongside a growing number of Queensland minerals being refined and used in highly productive partnerships.

Consider for a moment that the modern compact energy-efficient fluorescent light bulb is a combination of bauxite, lead, copper, limestone, nickel and phosphorous.

Even humble toothpaste contains silica, limestone, aluminium, phosphate, fluoride and titanium.

Another important aspect of the exploration story and future is technology.

Historical accounts imply that in 1923 John Campbell Miles was more lucky than observant when he camped

by the banks of Queensland’s Leichhardt River while on a gold prospecting trip to the Northern Territory.

Literally poking out of the ground he is reported to have ‘stumbled’ on a heavily mineralised rock outcrop signposting to one of the world’s richest copper, silver, lead and zinc ore bodies.

After almost 90 years of continuous production from Mount Isa Mines, all Australians have something to show for Miles’ awareness and tenacity.

In the 1980s, it was aerial gravity survey technology that delivered Queensland and Australia the Cannington ore body from beneath a paddock south-east of Mount Isa.

Today there’s much enthusiasm among geologists that the ‘next Mount Isa’ is still waiting to be discovered, but like Cannington, it will not be found by accident.

Its discovery will demand technology not only capable of looking beneath landscape but also defining ore bodies with three-dimensional accuracy. The good news for Queensland is that this technology is available to the many geoscience service companies locating in Brisbane.

Exploration’s voracious appetite for goods and services means that the industry has as much relevance to metropolitan Queensland as it does to more isolated parts of the state.

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The QEC also runs monthly investor forums at the Polo Club to allow exploration companies to attract the essential investor support to test exploration ideas.

All that said, it takes a special type of individual to be a mineral explorer.

Coupled with an extensive knowledge of how the earth was formed (aka geology) and an unbridled thirst for discovery, a modern mineral explorer’s position description must also include:

• An intimate knowledge of financial instruments and risk management

• The ability to live out of suitcases and/or swags for extended periods

• The skill to move seamlessly between the bush and boardrooms

• Levels of persistence and optimism far in excess of any other profession.

The risks are high, but so are the rewards, as history confirms.

James Nash’s discovery of gold near the Mary River in 1867 was the salvation of the infant colony following closure

Brisbane fits seamlessly into the bigger exploration picture.

Its business diversity and growth prospects are inherently linked to innovation – an essential point of difference with other cities in the Asia-Pacific region.

Brisbane was identified as a ‘hot-spring’ for innovation in 2009 by McKinsey & Company and since then has emerged as a leader in knowledge-based industries.

Nowhere is there more demand for ‘high-tech’ services than in exploration and another reason why the Queensland Exploration Council (QEC) that I chair was formed under the initial patronage of the Queensland Resources Council and its Chief Executive Michael Roche.

The QEC’s vision is clear in aiming to make Queensland a minerals and energy exploration leader by 2020 with Brisbane as its heart.

The QEC’s membership comprises a ‘who’s who’ of the resources sector, together with leaders from the worlds of finance, events and marketing, R&D and government.

Its focus is on influencing perceptions about the importance of exploration, and promoting Queensland’s prospectivity to investors and businesses that support the exploration sector.

Among its flagship events is the Queensland Exploration Breakfast, which this year is being held on 2 November in conjunction with the Mining 2012 Resources Convention.

Our keynote speaker is the Chief Executive of the Australian Stock Exchange Mr Elmer Funke Kupper whose address will focus on the capital-raising environment for minerals and energy explorers.

We will also use this opportunity to update governments and industry on the Queensland Exploration Scorecard launched in 2011.

It provides a snapshot of the state’s performance measured by drivers including Queensland’s resources prospectivity and endowment, resource prices, political stability, explorer/investor confidence and access to the essential factors of production (capital, land, skills).

The risks are high, but so are the rewards, as history confirms.


of the Bank of Queensland and large scale civil unrest as thousands of unemployed took to the streets of Brisbane.

A few years later, a gold mine opened at Ironstone Mountain, south of Rockhampton.

The wealth created from the copper, gold and silver unearthed at Mount Morgan funded William Knox D’Arcy’s exploration for oil in Persia, from which the Burmah Oil Company (later known as BP) was formed.

D’Arcy’s legacy was described at his recent and overdue induction into the Queensland Business Leaders’ Hall of Fame as ‘instrumental in changing the course of human history’.

QUT Vice Chancellor Professor Peter Little observed that had D’Arcy not poured money into the exploration and mining for gold at Mt Morgan, he would not have had the funds to explore for oil in the Middle East, thereby giving Britain access to oil that not only changed the course of history in World War 2 but also day-to-day life as we know it.

A more recent example was the persistence of Ken Talbot and his associates to find some of the untapped coal resources in the Bowen Basin which led to the formation of Macarthur Coal and the additional value that created for Brisbane and Queensland.

Similarly, a number of exploration companies recognised the potential of coal-seam gas in Queensland over 20 years ago and in spite of many challenges, drilled the early fields that have translated into the creation of a liquefied natural gas (LNG) export industry.

As the exploration landscape changes, the entrepreneurial spirit of mineral explorers will ensure Queensland’s rich lands will continue to be fruitful. potential of coal-seam gas in Queensland over 20 years ago and in spite of many challenges, drilled the early fields that have translated into the creation of a liquefied natural gas (LNG) export industry.

As the exploration landscape changes, the entrepreneurial spirit of mineral explorers will ensure Queensland’s rich lands will continue to be fruitful.

A number of exploration companies recognised the potential of coal-seam gas in Queensland over 20 years ago and in spite of many challenges, drilled the early fields that have translated into the creation of a liquefied natural gas (LNG) export industry.

dr Geoff dickie is a former Queensland Deputy Coordinator-General and now provides advisory services to the resources sector. As Deputy Coordinator-General his responsibilities included facilitation and impact assessments of significant public and private sector projects, industrial land planning through State Development Areas, and the commercial aspects of infrastructure provision. Geoff has tertiary qualifications in economics and geology and worked previously in mining and petroleum exploration and development in Australia and Canada and was Managing Director of a junior mining company. In ensuing years he managed government resource departments at both commonwealth and state levels, including as Special Advisor, Native Title and Mining, and Executive Director, Minerals and Petroleum Division in the Department of Natural Resources and Mines. {


common user infr astructure (cui) and the resources industry

In recent years, once-in-a-generation highs in commodity prices have led to a dramatic increase in demand for additional infrastructure capacity to support the continuing development of the resources sector. To meet this demand, companies are considering alternative ways to fund infrastructure, including the option of entering a common user agreement, where multiple organisations commit to a project.

Rail and rolling stock, port facilities, water and power are essential infrastructure for most resource companies and common user agreements are providing a viable option for their development.

Infrastructure which can be utilised by more than one user has a number of advantages:

• For future infrastructure users (including small and medium-sized resource project proponents), it provides an infrastructure solution that they may otherwise lack the scale or means to provide on their own (in contrast to some larger resources companies).

Common user infrastructure agreements can deliver significant advantages if risks are managed.

keira Brennan partner, cLayton utz

Companies are considering alternative ways to fund infrastructure, including the option of entering a common user agreement, where multiple organisations commit to a project.


As the company notes: Wiggins Island will be a first for Queensland - a privately funded terminal owned by the industry members that will use the terminal to export the coal they produce. the curtis island pipeline: publicly-owned and partially privately funded

This project to deliver water and wastewater services to the various liquefied natural gas projects under development on Curtis Island off Gladstone provides an alternative model. The Gladstone Area Water Board and Gladstone Regional Council was asked to provide water and wastewater services to Curtis Island to permit the construction and operation of the APLNG project (a joint venture between Origin, ConocoPhillips and Sinopec), on the understanding that, although the project was partially financed by the private sector, the infrastructure would remain in public ownership and be made available for use by the other LNG project proponents. As the Water Services Association notes, the resulting Curtis Island Pipeline will increase the asset base on which the water board can earn a commercial return and provide an infrastructure solution for the LNG industry with less environmental and community impact than would have been the case had individual desalination plants been built on Curtis Island for each LNG project.

• For government, CUI allows the procurement of new infrastructure funded in whole or in part by future infrastructure users in a way that minimises the social and environmental impacts otherwise associated with multiple parallel infrastructure developments.

delivery modelsThe booming central Queensland town of Gladstone

provides two examples of delivery models that may be used for CUI: Wiggins island: industry-owned and privately-funded

Following a similar project owned by the Newcastle Coal Infrastructure Group that delivered a third coal export terminal in the Port of Newcastle, the Wiggins Island Coal Export Terminal project will deliver a new export coal terminal in the Port of Gladstone with the capacity to initially export an additional 27 million tonne of coal per annum (with capability of expanding to 80 million tonne per annum). A special purpose vehicle (Wiggins Island Coal Export Terminal Pty Ltd) was incorporated by a number of coal exporters to procure the project and deliver the additional export capacity for coal producers in Central Queensland. Gladstone Ports Corporation will operate the terminal. The project is being financed by a combination of preference shares, subordinated debt and senior debt to be provided by the private sector.

Wiggins Island will be a first for Queensland - a privately funded terminal owned by the industry members that will use the terminal to export the coal they produce.


some issues to considerAs with all projects, a CUI project presents many

issues for resolution and brings with it complex contractual negotiations, particularly where the interests of a number of parties need to be considered. Issues include:how will the project be structured?

This is a critical question that will have flow-on effects for the legal relationships of the proponents, and the manner in which the CUI can be financed. Options include:

• Incorporated and unincorporated joint ventures which might involve companies or trusts in which the users have equity interests

• Provision of infrastructure by government entities where the users either directly provide finance or repay all or part of the capital cost through user charges.

Financiers will be concerned with issues such as balancing credit risk (which is essentially being assessed on the viability of a number of different resources projects) and the interrelationship with other elements of the logistics chain (for example, an export coal port requires that the upstream rail and mine facilities to be constructed on time and to continue to operate). how will early and late contributions to the project be managed?

Infrastructure users will seek to become involved with and fund CUI at different times in a project’s lifespan. Future users who commit to funding a CUI project early in its development assume more risk than those that commit to involvement later in the project’s development, and generally expect to have some part of their original contribution reimbursed by late contributors. Reimbursement principles are often complex, and a variety of escrow arrangements can be used to manage

the reimbursement process. Ownership stakes may also have to be adjusted as new users are introduced, with an adjustment mechanism included in the project documents. Who has control over the performance standard the infrastructure provider must meet?

As the future users of CUI are also funding the project (whether in whole or in part), they will usually want some control over, and accountability from the infrastructure provider about, the scope of the works to be performed, the cost of the work undertaken and the timeline for the delivery. Future users may seek to exert some control over a CUI project by:

• Having an involvement in the development of the performance specification of the CUI

• Imposing regular reporting obligations on the infrastructure provider

• Including a requirement that an independent engineer or verifier certify that the works completed are consistent with the performance specification

• Having a project implementation committee oversee the delivery of the project.

The nature of the supervision will depend on the project structure and delivery model adopted.

conclusionCUI can deliver significant advantages to the

economics of a project and also reduce the social and environmental impacts. There are challenges in managing the competing interests of infrastructure users and the appetite of private sector financiers to accept some of the specific types of risk which apply to CUI.

keira Brennan is a partner in the Energy and Resources group at Clayton Utz. Keira is consistently recognised by various independent legal directories as a leading practitioner in the energy and resources sector. Most recently Keira was voted by her peers as one of Australia’s Best Lawyers in Mining. Keira has built a reputation for her insight and understanding of the issues facing the energy and resources industry and her dedication to finding innovative and pragmatic solutions not only for her clients’ legal issues but also their commercial concerns. Keira has extensive experience in mergers and acquisitions and joint venture arrangements in the resources industry (particularly the coal, gas, gold and base metals sectors), as well as extensive knowledge in access to rail and port infrastructure, the Queensland overlapping tenure regime and the operational requirements of energy and resources clients.

The assistance of Nathan Colless, Lawyer, Clayton Utz, is acknowledged.

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Sourcing highly skilled workers internationally is critical to the growth and development of Queensland’s burgeoning LNG sector and, properly implemented, will leave a legacy of positive economic multipliers including the up-skilling of locals.

Queensland has three mega-LNG projects underway with a combined value of more than $70 billion (AUD). These are part of a solid pipeline of work in Australia’s LNG sector including $80 billion (AUD) worth of projects in Western Australia and $25 billion (AUD) in the Northern Territory. Many of these projects have offtake agreements in place with Asian stakeholders and will continue to contribute significantly to economic activity regardless of speculation over mining boom or bust. In addition the Bureau of Resources and Energy Economics reports there are currently 98 mining projects with a combined value of over $260 billion (AUD) under construction in Australia.

With the Australian industry still in its infancy and this scale of competing projects requiring niche skill sets, companies have little or no alternative but to source

specialist skills from abroad, at least in the short term, to ensure project demands are met.

Fragomen works with local contractors to prepare workforce plans, often identifying skills shortfalls at the operator level in project planning. For example, with large LNG projects, it is often the case that no previous Australian project will have dealt with the size of pipe nor the scale of pipe-laying required. Training and up-skilling of Australian operators for these kinds of projects can only be done safely in an environment where there are a number of skilled operators present. Accordingly, contractors source and recruit overseas skilled operators while employing and training. In this way, foreign skilled operators build the critical mass of skills necessary to move projects forward quickly and also ensure the success of local training and up-skilling programs.

It is interesting to note the role of Australia’s Department of Immigration and Citizenship (DIAC) in the process of obtaining foreign-skilled workers for Queensland LNG mega-projects. For new skill sets, such as those discussed above, it may well be that

International recruitment in Queensland’s LNG sector to leave strong economic legacy.

Ben WiLLis practice Leader and speciaL counseL, fraGomen

Foreign skilled operators build the critical mass of skills necessary to move projects forward quickly and also ensure the success of local training and up-skilling programs


their occupation cannot be found on the current DIAC list of approved occupations. In such circumstances, contractors will need to seek a company-specific Labour Agreement, to be negotiated with DIAC. These labour agreements should not be confused with the ‘Roy Hill’ type Enterprise Migration Agreements (EMAs) as an EMA is project specific and the terms are not negotiated by the contractor. There are only a handful of EMA qualifying projects in Australia whereas a company-specific labour agreement is available to any contractor where the need requires.

Before DIAC will agree to a labour agreement the negotiating company must address a number of key requirements which include demonstrating -

• That the company is a good corporate citizen and is financially sound

• A commitment to training Australians and in particular training mechanisms to assist in reducing the reliance on foreign labour

• That the labour market analysis indicates an actual shortage of the required skills

• That foreign workers will have a minimum standard of English and qualifications and work experience at a particular level

• That the foreign worker will be remunerated and treated no less favourably than an Australian worker

• That the company has undertaken a consultation process with the relevant stakeholders including unions and employer groups.

It should be noted that the above list is not exhaustive as there are many other terms and conditions that DIAC may impose in a typical labour agreement. For example, DIAC requires an independent skills assessment process which is satisfied if the foreign worker holds an Australian qualification (typically a Certificate III) awarded by an Australian Registered Training Organisation (RTO).

providers and equipment hire businesses where significant long-term benefits can be had from servicing over the entire lifespan of some the LNG mega-projects.

Most importantly, growth in numbers of our skilled occupations and professions in Queensland will have flow-on effects for the training and up-skilling of all Australians.

The key is to have sufficient numbers of skilled operators and professionals to permit the right balance between experienced and trainee operators. This skills transition is fundamental to the proper management and deployment of overseas skilled workers in our resources and mining sectors.

There are only a handful of EMA qualifying projects in Australia whereas a company-specific labour agreement is available to any contractor where the need requires.

As to future hiring practices in Queensland, including for LNG mega-projects, a recent Hudson report shows:

• Professional services is the sector with the strongest positive hiring expectations (56.3%), followed by construction/property/engineering (40.2%).

• Industries that intend to keep a stable headcount include manufacturing (66.7%), followed by financial services/insurance (63.9%), resources (63.4%) and government (61.7%).

• The sector with the strongest negative hiring expectations is government (31.7%), followed by transport (15.2%) and manufacturing (13.6%).

No doubt the strong growth in demand anticipated in the white collar professional services highlighted above will continue to have strong and positive economic flow-on for Queensland, especially for the state’s major operational resource hub of Brisbane

However, these types of positions are also required in construction and servicing projects in the regions where the employment of these professionals, sometimes foreign workers, will also provide local businesses with additional income.

The obvious candidates in these locations range from accommodation providers through to the training

Ben Willis is the Practice Leader and Special Counsel in the firm’s Brisbane office. Ben is an Accredited Immigration Law Specialist and has practised exclusively in the area of immigration law since 2004, largely specialising in corporate immigration. Ben has a wealth of experience in dealing with clients operating in all industries and sectors. In addition to working with clients on temporary and permanent business entry programs, Ben also provides strategic and commercial advice on workforce resourcing and planning often culminating in various types of Agreements including Labour Agreements, Work Agreements, Enterprise Migration Agreements between industry and the Commonwealth Government.

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acknowledgmentsspeciaL thank sBrisbane Marketing is indebted to our special contributors for their generous involvement with the Brisbane Economic Series, namely:mark ingham, Partner, Deloitte Access EconomicsBen hensman, Analyst, Deloitte Access Economicsdr Geoff dickie, Chairman, Queensland Exploration Councilkeira Brennan, Partner, Clayton UtzBen Willis, Practice Leader and Special Counsel, Fragomen

imaGe credits© The State of Queensland. Photographer: Michael Marston. Courtesy of Queensland Government.© The State of Queensland. Photographer: Aaron Tait. Courtesy of Queensland Government.© Ray Cash Photography. Courtesy of Queensland Government.New Hope GroupQueensland Resources CouncilCSIRO

contactBrisbane Marketing’s Investment Attraction division is the city’s inward investment agency. With an international reputation for success, we work with a diverse group of clients across a range of sectors to help attract new business to Brisbane. By connecting leaders of industry and providing the critical information and introductions, we’re strategically shaping the future of Brisbane’s business environment and helping deliver long-term economic growth for the city.www.investbrisbane.com.auLevel 8, Roy Harvey House, 157 Ann Street, Brisbane, Queensland, Australia, 4000PO Box 12260, George Street, Brisbane, Queensland, Australia, 4003Phone: +61 7 3006 6200 Fax: + 61 7 3006 6250 Email: [email protected]

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Brisbane Economic Series Issue 5: Energy and Resources

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