Roche noted the concerns of QRC members who fear some circles within government view resource sector companies as having a “‘limitless ability to pay more and more in royalties, taxes and charges, and to take on expenditure responsibilities of government”

He said the resources in the ground might not be mobile but capital was very mobile indeed.

“Increasingly, Queensland resource sector leaders are having to weigh up the sovereign risk associated with operating in Queensland against new opportunities in expanding minerals and energy provinces in Africa, Asia and South America,” he said.

The state government committed to making no increases in royalties for the looming 2009-10 budget, after what has been considered the 2008 state budget “royalty raid”

“We therefore expect that the government will honour the written promise of the deputy premier that a re-elected Bligh government would consult with industry on any changes to the royalty regime for minerals, oil and gas and undertake a regulatory impact statement prior to contemplating significant royalty changes,” Roche said.

In his submission Roche also called for the Queensland government to continue to support the Smart Exploration and Smart Mining programs which are due to expire at the end of June.

“These programs have added enormously to the bank of pre-competitive geoscience knowledge about Queensland’s minerals and energy prospectivity.

“However, much more needs to be done if Queensland is to catch up and pass the quality of pre-competitive geoscience in other states.

“The Queensland government needs to provide the Geological Survey of Queensland with the resources it needs to keep advancing the state towards the government’s 2020 exploration leadership goal.”