Mining tax critics in LNP party lose bid for ‘reversal’

A move by regional federal LNP MPs to challenge their state counterparts to call for a “reversal” of Queensland’s controversial mining royalty hike has been significantly watered down amid pushback from state MPs.

A move by regional federal LNP MPs to challenge their state counterparts to call for a “reversal” of Queensland’s controversial mining royalty hike has fallen over.

The motion, moved by ­former resources minister Keith Pitt, was originally framed to support a “reversal” of the mining royalty hike. But in a closed session at the LNP’s annual convention on the weekend, it was ultimately watered down significantly amid pushback from state MPs.

In the end, the motion was understood to call for the LNP to “reaffirm” its com­mitment to “lower taxes and smaller government” and to “acknowledge” that the ­royalty hike would affect Queenslanders.

It is understood state MPs argued that while the royalty hike was not ideal, the Opposition could not reject the increased funding for health services the government promised it would bring.

The Opposition did not oppose the government’s budget in parliament, voting through the royalty rate hike.

Treasurer Cameron Dick last week insisted Queensland had a “strong relationship” with Japan after the nation’s ambassador warned the state’s controversial coal royalty hike had put future investment at risk.

Japanese Ambassador to Australia Shingo Yamagami warned the royalty hike had been a “huge shock” for Japanese companies.