Australia’s resource industries are under threat due to the falling commodity prices and the rising operational costs. Much of the cost comes from the exorbitant salaries paid to employees, and despite the various arguments that have been made to counter this claim, some recent news has come to light that even the most ardent supporters of high wages in Australia are finding hard to justify.
Forbes has discovered that a cook on an offshore oil and gas rig in Australia gets paid $240,000 a year.
Gary Gray, the Australian Resources Minister finally admitted that they “do have unreasonable wage demands in the LNG industry.”
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Even Anthony Albanese, the Minister for Infrastructure, who has been the governments staunchest defender a high pay packets, has found himself unable to stand up for this claim after it was pointed out to him that they cook would actually take home a bigger pay check than he would.
Ian Macfarlane, a spokesman for Opposition Resources, said, “a cook on an oil rig gets paid more money than Anthony Albanese, if he thinks that’s the way we remain internationally competitive he’s on his own.”
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At the annual Australian Petroleum Production & Exploration Association (APPEA) conference Roy Krzywosinski, the managing director of Chevron Australia, warned that whilst Australia is currently experiencing a boom in development of LNG projects valued in the region of $160 billion, the high costs, amongst other factors are threatening a further $100 billion worth of new projects.
“Governments and industry must make changes now to capture the second wave of investment. There is an 18-to-24 month window in which to do so.” Reducing wages would be a good place to start.
By. James Burgess of Oilprice.com