PERTH (miningweekly.com) – The Australian resources sector has welcomed the federal government’s response to a 2013 inquiry into fly-in, fly-out (Fifo) practices.

Deputy Prime Minister and Minister for Infrastructure and Regional Development, Warren Truss, this week said that the government had agreed to four of the 21 recommendations made in the report, while noting 14 others.

He said that responses to several other of the recommendations were already under way.

The committee's 2013 inquiry led to the suggestion that Fifo practices could lead to the hollowing-out of established regional towns, and suggested a number of measures to provide incentives for Fifo workers to become residential workers.

The recommendations included further study into the economic impact of Fifo, funding allocations for communities that receive Fifo workers, and a review of the fringe benefit tax (FBT).

“The Australian government has carefully considered the recommendations made by the committee and is addressing each recommendation individually,” Truss said.

“The recommendations have a broad range of regional implications and a number of areas for action across all tiers of government. The government's commitment to the regions is demonstrated through a broad suite of investments aimed at assisting regions to meet the challenges they face and to create and capitalise on new opportunities for growth.”

Truss said that this included a A$2.1-billion Roads to Recovery programme, the A$1-billion National Stronger Regions fund, the A$500-million Black Spot programme, as well as other initiatives such as the A$300-million Community Development Grants programme.

“These investments will ensure small regional communities are supported by the infrastructure and services they need.”

The Minerals Council of Australia has welcomed the government’s response to the report, with deputy CEO John Kunkel saying that the government had recognised the essential point that Fifo is used within the mining industry to address a lack of skilled employees in remote parts of Australia and that the economy as a whole has benefited from labour mobility.

The Western Australian Chamber of Minerals and Energy (CME) pointed out that Fifo was about providing choice for workers in a competitive labour market.

“In recent years, we’ve seen a greater variety in Fifo rosters available, dramatic improvements in accommodation quality and facilities offered. Additionally most companies provide support groups and employee assistance programmes to help new employees adjust to the Fifo lifestyle,” said CME CEO Reg Howard-Smith.

Howard-Smith said that the government had “responded correctly” to each of the recommendations made in the report, adding that the resources sector had been concerned with a number of elements in the report.

Queensland Resources Council CEO Michael Roche also welcomed the federal government response, saying that Truss had rightly pointed out that many of the recommendations were already covered by federal, state or local government processes, or had already been announced, such as changes to zone tax rebates for Fifo workers.

While the industry bodies have responded positively to the government’s announcement, workers union CFMEU warned that Fifo concerns raised in the report were being dismissed at the government’s own peril.

CFMEU national president Tony Maher said the government's response to the report revealed that it did not appreciate the scale of the damage caused by the growing insistence of big mining companies for itinerant over local workforces and the damage being done to vital local businesses by companies refusing to source their goods and services at competitive rates. 

“At the moment we have the absurd situation where skilled and experienced mineworkers living in local communities and regional centres are locked out of jobs because mining companies insist 100% of their employees must fly in from the big cities,” Maher said.

“Once thriving communities are now hurting as whole families are forced to pack up and move out of town to find jobs, and local businesses are shutting down. The report offered a clear path to mitigate the fallout for workers, families and communities but the government has rejected key recommendations.”

Maher warned that by ignoring regional communities the government faced a backlash from Central Queenslanders at the next election.