Local workers can do jobs cheaper: MP

Hedland businesses can complete mining and resources contracts cheaper than Perth or interstate companies because they have access to cheaper labour, Pilbara MP Brendon Grylls says.

Speaking at the Chamber of Commerce’s Hedland Economic and Resources Forum, Mr Grylls’ comments came in response to an earlier talk by BHP Billiton WA iron ore asset president Edgar Basto.

Mr Basto said BHP had been increasingly working with local companies and cited the example of Hedland’s Barmelco Electrical Services, which was able to submit a tender 40 per cent cheaper than its out-of-town rivals.

Mr Grylls said he had long argued residential workers were cheaper than fly-in, fly-out workforces.

“For all of the businesses in this room that are tired of losing out in tenders to non-local businesses, (this shows) there are opportunities for you,” he said.

“(But) the question I’ve got is, if Barmelco can be 40 per cent cheaper by being locally based, why don’t we have many (more) locally based contractors?” “That must mean we are making decisions to pay more than we have to (by choosing to instead) get FIFO (workers) up here.”

With Mr Basto also stating his company intended to operate out of Hedland for at least another 100 years, Mr Grylls argued it was time for miners to begin making the shift to residential workforces.

“The comparison between an electrician living locally, working for Barmelco … compared to a FIFO electrician is somewhere between $50,000 and $70,000 … difference,” he said.

“Do we really think that for the next 100 years that chief financial officers are going to be allowing (their mining companies to employ expensive FIFO workers)?”

“I tell you right now, I’m putting (their) royalties up. If the businesses are that profitable that they can afford to pay nearly double per unit of labour, then the Govern-ment should be charging them more.

“I get really angry when I talk to companies that say ‘we can’t attract a workforce to live here’.

“I don’t think they are trying.”