[Land-and-Labor] We've got mining on the mind, survey shows

[lev.lafayette at isocracy.org]

Clancy Yeates
September 8, 2011


THE public thinks mining contributes far more to the economy and job
creation than it really does, while underestimating the level of foreign
ownership in the industry, a survey says.

The Australia Institute survey shows the public believes mining provides
an average of 16 per cent of the jobs across the economy.

In contrast, official figures show the industry's share of employment is
1.9 per cent, or 217,000 jobs.

Read more:
http://www.smh.com.au/national/weve-got-mining-on-the-mind-survey-shows-20110907-1jxvr.html#ixzz1XL5V6Wsd

Respondents thought mining made up 35 per cent of the economy, when in
fact it accounts for about 9 per cent of the gross domestic product.

Respondents also believed about half the mining industry was foreign-owned
- but a recent Reserve Bank report said the figure could be about 80 per
cent.

The institute's executive director, Richard Denniss, said the public had
''clearly'' been affected by mining advertising in recent months and
during last year's tax stoush.

The survey of 1370 people is part of a new report on the costs and
benefits of the mining bonanza, titled Mining the Truth, to be published
today by the left-leaning institute.

As well as making life harder for many exporters by driving up the dollar,
the boom has widened the current account deficit by increasing overseas
money flowing into Australia to fund the investment.

''We are in the middle of the biggest mining boom in history and our
current account is heading back towards record highs,'' Dr Denniss said.

''The mining boom is simply cannibalising other exports. It's not driving
a substantial increase in the total level of exports.''

The report also challenges claims household wealth has become heavily
exposed to mining through indirect ownership of shares via superannuation.

For the typical super fund of an employee nearing retirement, worth
$71,731, the report says a 10 per cent fall in mining shares would cut the
value by $287.

After yesterday's national accounts revealed the economy expanded by a
solid 1.2 per cent in the June quarter, the Treasurer, Wayne Swan,
stressed there was more to the growth than mining.

The managing director of Rio Tinto's Australian operations, David Peever,
said people were becoming more aware that the community benefited
''enormously'' from the boom.

http://www.smh.com.au/national/weve-got-mining-on-the-mind-survey-shows-20110907-1jxvr.html#ixzz1XL5YAf5r