Premier snubs annual Resources Council lunch after miners launch attack on Qld royalties

The Premier has lashed out at $40m campaign by mining companies targeting her government’s royalties regime, saying the money could have been spent on helping Queenslanders.

• Explained: How coal royalties tax works

Annastacia Palaszczuk has snubbed today’s Queensland Resources Council annual lunch, with the Premier taking aim at the lobby group for spending millions of dollars attacking her government.

The QRC will unleash the massive campaign on Wednesday in response to the state government’s new royalties regime, warning of its impact on regional jobs and future investment in the state.

The industry group will unveil the campaign at its annual lunch in Brisbane – to run across television, digital radio, and print, and which urges the government to dump its new super profits tax, which the Queensland Resources Council says is the highest in the world – which Ms Palaszczuk and her Ministers will be boycotting in protest.

Premier Annastacia Palaszczuk. Picture: Tertius Pickard

“I was invited to today’s lunch. I have made it very clear that my ministers will not be attending this lunch because of the campaign – the $40m campaign,” she said.

“I am angry about this.”

The Australian newspaper had previously reported that the campaign will cost about $40m – a figure Ms Palaszczuk seized on as she returned fire at the QRC.

“If they have $40m … for an advertising campaign, I can build a special school in Queensland for $40m,” the Premier said.

“I could put money into housing with $40m. I can put $40m to very, very good use – towards another satellite hospital.

“If companies are making $40m to go into a campaign, that money can be very well spent in the lead up to Christmas helping Queenslanders.”

Queensland Resources Council chief executive Ian Macfarlane.

Ms Palaszczuk insisted she had a strong working relationship with a range of mining companies as she hit out at Mr MacFarlane – saying she was “extremely disappointed” in him.

Resources Council chief executive Ian Macfarlane said the campaign, Keep Queensland Competitive, was about the entire sector being subjected to a fallout on jobs and investment as a result of the change – not just coal.

“The Queensland government has severely damaged the state’s international reputation as a reliable place for resources investment by more than doubling the coal royalty tax rate to the highest in the world, without warning and without consultation,” he said.

“Queensland’s top tier rate is now an incredible five times that of NSW.

“The global resources market is extremely competitive, and companies have plenty of other regions and countries in which to invest their capital if a particular government decides to start imposing exorbitant royalty tax rates.”

In response to Ms Palaszczuk’s snub, Mr Macfarlane showed an image from last year’s lunch to the 800-strong crowd at today’s event.

“What a difference a year makes,” he said as he showed a photo of himself posing with Ms Palaszczuk, Deputy Premier Steven Miles and other premiers.

“Last year we had the Premier, the Deputy Premier, the Treasurer and a host of ministers,” Mr Macfarlane said.

“Now (they) are no shows to the resources sector’s biggest event of the year. I wonder if she would have come if it was a tourism event?

“Not only did they pull the plug on the lunch, but they have also pulled the plug this year from underneath the resources sector by introducing the world’s highest royalty tax.

“And let’s not forget, this is from a state government that went to the last election promising Queenslanders now new or increased taxes.”

It was understood the Premier had already declined an invitation to the event, despite her saying today she had “boycotted” the event due to a new $40m marketing campaign against the state government’s royalty regime increase.

However, The Courier-Mail understands resources minister Scott Stewart, small business minister Di Farmer and deputy-general Rachel Hunter were last minute no-shows.

A number of LNP members attended, including leader David Crisafulli and shadow treasurer David Janetski.

Mr Macfarlane also released the QRC’s annual economic contribution to Queensland, which showed the sector had contributed $94.6b to the state, and supported more than 450,000 jobs.

Treasurer Cameron Dick has repeatedly stood by the hike. Picture: NCA NewsWire / Dan Peled

The QRC lunch was to feature an address from Japanese Ambassador to Australia Shingo Yamagami, who also previously hit out at the changes, and will deliver a keynote address.

“Our major trading partner, Japan, and companies as big as BHP and Peabody Energy, have already publicly questioned their future investment in new projects in Queensland, putting tens of thousands of jobs across our industry’s supply chain at risk,” Mr Macfarlane said.

“These won’t be the only companies to move their investment focus away from Queensland, with the royalty tax increase being discussed in world boardrooms.

“Concerns about the Queensland government’s attitude towards resources development are already spreading to other sectors like critical minerals because many of the same companies that invest in traditional commodities like coal, metals and gas are also major investors in this emerging and important sector.”

Ms Palaszczuk on Wednesday insisted the state’s trade to Japan had increased substantially in recent times, with a trade mission to Japan and South Korea planned for next year.

“What I have always said and I maintain I’ve always given the Japanese government security of supply,” the Premier said.

“That is very important when other countries around the world cannot provide that security of supply.”

Treasurer Cameron Dick has repeatedly stood by the increase, saying it was “fair” Queenslanders got their share of mining royalties, as coal prices hit record levels.

It has been forecast the new rate would deliver a further $1.2bn over the next four years, though some in the sector believe it would be higher.

Originally published as Premier snubs annual Resources Council lunch after miners launch attack on Qld royalties