Country heading for trouble

THE local head of US energy giant Chevron has warned that $100 billion worth of resources projects are “hanging in the balance” due to soaring costs and declining confidence in the federal government’s policy settings. Speaking at the In the Zone conference in Perth, Chevron Australia managing director Roy Krzywosinski cited a study that found projects in Australia were 40 per cent more expensive than the US and the local workforce was 60 per cent less productive than its American counterpart Rio Tinto’s managing director for China, Ian Bauert, told the conference that Australia had become the most expensive place to do business for Rio after being considered the cheapest place to do business five years ago. Now what happened five years ago? Ah yes, ALP formed government