In its report that was only released by Queensland’s government late last week despite being completed in July, the panel told the state government not to interfere with existing resources projects, but recommends FIFO on new projects only as a last resort.

Panel chairman Leo Zussino noted that 13 of the 41 coal mining operations in the region used more than 90% non-residential workers last year, while 10 more operated with between 70% and 90%.

“Many resource community stakeholders have expressed concern that the increased use of non-residential, fly-in, fly-out operational personnel by resource companies is having a detrimental economic impact on their communities,” he said.

The panel also said the state government should put conditions on new resource activities and devise workforce, procurement and accommodation plans which should encourage them to hire locals ahead of FIFO workers.

The panel said project proponents should develop a “robust and sustainable commitment to hiring and training personnel from resource communities first, followed by nearby regional communities and then from within the state of Queensland and beyond”

The report acknowledged that Queensland’s mining industry contributed $27.4 billion to the state’s economy in real terms in 2013-14 compared to about $15.1 billion in 1999-2000 – an annual growth rate of 4.36% over 14 years.

However, it noted there had been an increase in the non-residential proportion of the resources sector’s operational workforces located within “safe travelling distance” of a resource community.

“Whilst the resource industry contributes significantly to the economy in both value added terms and employment, many resource community stakeholders have expressed concern that the increased use of non-residential, FIFO operational personnel by resource companies is having a detrimental economic impact on their communities,” the report states.

“A number of resource activities, especially in the North West minerals region and in the oil and gas region in the southwest corner of the state, have historically operated with up to 100% non-residential, operational workforces, due to the activity being in a remote location.”

The Queensland Resources Council has cried foul, claiming there appeared to be “little evidence” that the panel actually considered the views of resources sector workers and their families.

While QRC CEO Michael Roche welcomed the panel’s recommendation against retrospective action to alter existing approvals and the existing workforce, other measures would only make it tougher for the sector – both in the hard rock and hydrocarbon spaces – struggling under low commodity prices.

“Despite the sector’s enormous contribution to the state’s coffers, it is currently in survival mode due to the commodities slump, and extra regulatory layers, in what is an already heavily-regulated environment, could adversely affect productivity and our sector’s competitiveness,” Roche said.

“Under existing arrangements a project’s environmental impact statement has to address all the matters identified in the report.”

Roche warned the report’s talk of financial penalties was a sure recipe for driving investment interest away from Queensland.

He said the concept of “100% FIFO mines” in the Bowen Basin was always a furphy, with all mines requiring support from many local businesses in addition to the site workers.

“Just last month we released our workforce accommodation survey, which found that better than four out of five employees would not change where they live even if they were given the opportunity,” Roche said.

“The important message from workers surveyed, is that they want to have the choice and they don’t want that choice taken away from them. There’s no one-size-fits-all approach to where workers live.

“QRC also acknowledges the report’s backing of the Queensland Resources and Energy Sector Code of Practice for Local Content that is designed to provide full, fair and reasonable opportunity for capable local businesses to compete for the supply of goods and services for significant projects.”

In 2013-14 the state’s resources sector made purchases of $29 billion from 17,000 Queensland businesses, which represented about 75% of all expenditure on good and services.