Broderick

TEN YEARS after the signing of a memorandum of understanding (MoU) between players in the bauxite sector, trade unions and the Government, a state minister is calling for a review of the agreement.

Laurie Broderick, state minister for mining and telecommunications, said the tripartite accord inked in 1998 should be revisited.

Fine-tuning

In his contribution to the 2008-2009 Sectoral Debate in the House of Representatives on Wednesday, Broderick said the objectives and mechanisms of the MoU should be fine-tuned to effectively respond to local and global developments in the sector.

He said failure to review the MoU at this time could have negative consequences on the competitiveness of the sector, particularly in light of escalating production costs.

Commenting on the impact of rising energy cost on the bauxite sector, Broderick noted that, because of the sector's dependency on imported fuel, the spiralling cost of energy was a major threat to its continued viability and international competitiveness.

He argued that, between September 2007 and July 2008, the average price for a barrel of oil increased by 100 per cent.

Broderick said the crisis facing the energy sector required a diversification of the energy mix, as well as the sources of supply.