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Category: Industry / Mining Industry / Business, Economics and Finance

WA Premier Mark McGowan warns mining industry on local jobs

17:02 UTC+8 April 27, 2017 | Jacob Kagi And Eliza Laschon

There have been major job cuts in WA's mining industry in recent years. (ABC News: Kathryn Diss)

WA Premier Mark McGowan has taken a swipe at the state's mining sector, urging firms to focus on local jobs, skills and apprenticeships to combat what he says is a rising tide of public hostility.

Mr McGowan has pointed to the WA Nationals' proposed mining tax on major companies BHP Billiton and Rio Tinto as an example of a shifting public attitude.

Despite the proposal costing the Nationals' previous leader Brendon Grylls his seat in the state election, Mr McGowan said it resonated with some Western Australians.

"During the last election campaign there was a rich vein of hostility that was mined by Brendan Grylls," Mr McGowan said.

"(He) did actually tap into a sentiment that some people have which is anti-mining.

"I think the mining industry needs to be very aware of that and make sure they avoid the problems occurring again."

He conceded the mining industry had "learnt their lesson" but needed to do more.

"That is more local content, more local jobs and more local apprenticeships," Mr McGowan said.

Local contribution increased dramatically: CME

The State Government proposed a bill prioritising jobs for locals during its election campaign, requiring a "skilled work agreement" be implemented on all major resource projects in mining, oil or gas with a build value exceeding $200 million.

It would require mining companies to negotiate with the relevant minister over employment on their projects.

They will need to demonstrate how local businesses will be given equal opportunity to tender for work, and how much work is being carried out in WA, which region it is being undertaken in and the number of apprenticeships and trainee positions created.

It is a promise the Government will pursue, claiming it is a better approach than mandating quotas.

"A lighter touch form of working with the industry is a ... better way to go," Mr McGowan said.

Chamber of Minerals and Energy chief executive Reg Howard-Smith said the resources was already doing most of what the Premier was calling for, but he said it needed to get better at convincing the public of that.

"The contribution has increased dramatically over the past decade, but West Australians have a perception that that is not the case," Mr Howard-Smith said.

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