Article by Jessica Page and Shannon Hampton, courtesy of The West Australian
20.08.2025
Australia’s economic engine room — the multibillion-dollar iron ore industry — would never get off the ground under today’s onerous approvals regime.
And Kerry Stokes, one of Australia’s most successful businessmen, has warned that as a nation, bad policies mean we are in danger of missing out on the next wave of success that will threaten the standard of living for generations to come.
In a major speech to the nation’s top resources executives as well as State and Federal ministers in Perth, Mr Stokes also warned that our top companies may not be “battle ready” to take on expansion of union activity in the sector.
“My message today is do not take for granted what we have got,” he said.
“We are here because of the sweat, hard work, ingenuity and persistence of the people who came before us.
“We shouldn’t take history for granted but instead use it to define our future to create an environment where we can build and use our resources for future generations to have a better standard of living.”
Mr Stokes also said there were growing concerns that major companies would look to divert their investment dollars to other regions, arguing capital was “very undervalued” in Australia.
He said it was important to understand the three primary drivers of economics — labour, capital and land.
“When they get out of balance, we end up with major issues,” he said.
“I would suggest capital is very undervalued now. Therefore, it will go to where it is valued the highest and that may well not be Australia.”
Mr Stokes, the chairman of Seven West Media, which is the owner of West Australian Newspapers, said through the sheer will of a handful of visionary West Australians and strong political leaders the Pilbara was rapidly built from almost nothing.
When iron ore was discovered in the Pilbara region there was a rapid expansion of critical infrastructure that kickstarted one of Australia’s most successful export stories.
“Building railway lines through the country that had never been contemplated before. Building ports. Building cities. The dredging of harbours and wharves — all to allow the big iron ore ships to dock. All this was done within a few years,” Mr Stokes said.
He said it wasn’t just the industry pioneers that got it done, it was government departments that helped make it happen.
“Today we probably couldn’t replicate it no matter how beneficial it would be,” Mr Stokes said.
“The end result is if we can’t do this, we will not continue to improve the standing of living for the next generation.
“To achieve this standard of living for the next generation the same proportions we have had in the past will need a total change of the way we consider major developments. So at the end of the day, we actually wouldn’t be able to get it approved today if starting now.”
Mr Stokes also warned about the increasing presence of unions, highlighting that miners went through a “really rough patch” in the 1990s when the unions exerted control over the Pilbara and brought the sector to a standstill.
“Management worked through those issues by providing the workers with better alternatives than what the unions could achieve,” he said.
“As a result, there has been no union activity in the Pilbara for nearly 30 years. Until now.
“I am concerned our major companies are actually not battle ready to deal with unions in the way we had to in the 70s and the 80s.”
Mr Stokes said WA had come a long way from the time he arrived in 1959, when there were few prospects and even fewer jobs.
“The discovery and development of iron ore and the opening up of the State changed everything,” he said.