Reducing project delays will deliver $160bn gain by 2025
A one-year reduction in delays in processing approvals for resources projects will lift Australia's national output by a total of $160 billion and create an extra 69,000 jobs by 2025, according to new research undertaken by BAEconomics.
The report is the first to quantify the potential gains from streamlining environmental approvals through the adoption of the Abbott Government's 'one stop shop' approach to project approvals.
Urgent national reform
This research demonstrates that the early adoption of the one-stop shop is an urgent national reform task. The report highlights the huge lost opportunity that will result from any efforts to slow or block those reforms.
The economic gains will be generated by a sustained recovery in Australia's global market share in key commodity exports as Australia overcomes the disadvantage of facing longer project delays than competitor nations. Work by Port Jackson Partners in 2012 found that average Australian mining project face approvals delays 1.3 years longer than our major competitors.1
The modelling results show that by 2025:
- Australia's real GDP will be 1.5 per cent higher, or $32 billion higher in today's dollars, if the average delay in project approvals is reduced by one year
- This GDP gain will increase to 2.4 per cent or $51 billion in today's dollars if the average delay is reduced by two years
- Over the 12 years from 2014 to 2025, the cumulative real GDP gains would be $160 billion and $280 billion respectively
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