Coal royalties battle continues in Budget lead-up

The Queensland Resources Council has launched a Budget-eve broadside over the State Government’s coal royalty tax increase. QRC chief executive Ian Macfarlane said the resources industry was backing the next phase of the Keep Queensland Competitive campaign to show the negative consequences of the royalty tax for new investment and jobs in Queensland’s resources sector. “Economists warned the new royalty rates would cost Queensland investment and jobs – and they have,” Mr Macfarlane said. “The royalty tax hikes have already cost Queensland a new $2 billion investment (Glencore's Valeria mine) which would have created more than 2000 jobs." But Treasurer Cameron Dick said people were doing it tough in Queensland and did not want to hear complaints from the mining lobby about paying a little bit more tax when their revenue was through the roof. He said Fraser Institute figures showed Queensland was one of the most competitive places in the world for coal industry investment. Mr Dick said the number of jobs in the coal industry in Queensland had grown since progressive coal royalties were announced. "And of course Queenslanders have already seen the benefit going back to them," Mr Dick said. "The Fitzroy to Gladstone pipeline, $500 million into the CopperString transmission line, new hospital in Moranbah, upgraded hospitals in Mackay, Townsville and Cairns. "And the greatest risk to all of that is the LNP, who've said they will not support progressive coal royalties." Mr Dick challenged the Leader of the Opposition to explain how he would fill 'that big budget black hole' if $3 billion of progressive coal royalties came out. Mr Macfarlane said Department of Industry, Science and Resources figures showed a pipeline of new resources projects worth more than $100 billion that could be at risk if Queensland continued with its uncompetitive royalty rates. “When the investment rules change so drastically and so suddenly as they did when the world’s highest coal royalty was introduced in Queensland last year, that’s a wake-up call for investors in all resources projects who have reason to rethink whether Queensland is the best place to invest," he said. “Without new resources projects, there are no new jobs, which will impact every Queenslander in one way or another. “At a time when the cost of living is increasing and mortgage rates are on the rise, the best security people can have is a job, which is what the resources sector can provide. “A stable and competitive royalty system that’s attractive to investors is also more likely to deliver consistent royalty tax returns that allow for long-term investments in hospitals, roads, schools and new energy infrastructure. “This short-sighted tax grab hurts Queensland in the long run, because it costs us new projects and new jobs. Regional Queenslanders pay an especially high price with the loss of infrastructure, services and the job-creating projects of the future. “The resources industry is asking the Queensland Government to work with us on a better way to secure the state’s resources future.” https://www.youtube.com/watch?vhoqq8XxBKQs

Coal royalties battle continues in Budget lead-up

Industry Queensland

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