Cracks show in the Queensland LNP over coal royalties

Opposition leader David Crisafulli says he supports the government’s revenue measures, including the new royalties, but some members are grumbling.

The future shape of Queensland’s lucrative coal royalty regime is uncertain, with opposition LNP members split in their support for the high-taxing measures.

In his budget reply speech, Opposition Leader David Crisafulli said he backed the government’s revenue measures, which include the three new royalty tiers Treasurer Cameron Dick introduced in June 2022, but still slammed the tax increases.

“It was a betrayal of Queensland families and those investing in our state,” he said.

“A deliberately deceitful plan but one tied to the attempt to revive service delivery and the cost-of-living relief Queenslanders need because of the failings of this Government.

“I will never stand in the way of these things.”

Queensland LNP leader David Crisafulli speaks in parliament on June 15. Picture: Tertius Pickard

When this publication pressed the leader’s office for clarity on whether an LNP government would maintain the same rates if elected, a spokesman returned to Mr Crisafulli’s speech.

But though LNP leadership is presently backing the new regime, which forces coal businesses to pay out 20 cents, 30 cents and 40 cents on the dollar as prices rise, some LNP members are grumbling.

Burleigh MP Michael Hart expressed direct opposition to the royalties in a tete-a-tete with Assistant Health Minister Brittany Lauga in parliament on June 15.

“I call on those opposite to answer this very basic question: do you or do you not support progressive coal royalties?” Ms Lauga asked.

Mr Hart interjected: “No”.

Later, Mr Hart dismissed the budget’s $15.3bn royalty haul as a “one-off sugar hit”.

Burdekin MP Dale Last has also raised the possibility of consultation between a future LNP government and the mining industry over the rates.

“We have given a commitment that we will sit down with the Queensland Resources Council, we will sit down with these mining companies and we will genuinely consult with them before we make any decision on coal royalty hikes and changes,” he said at the Queensland Mining and Engineering Exhibition in Mackay on July 20, 2022.

But even if an LNP government does consult with miners, it is unlikely royalties will fall to their pre June 2022 levels.

BHP CEO Mike Henry, speaking on the sidelines of the World Mining Congress in Brisbane last week, suggested he would be willing to negotiate higher rates.

“I think as we demonstrated in Chile, of course we understand the pressures governments face and want to work collaboratively towards solutions that meet the needs of governments but also meet the needs of industry,” he said.

“There is always going to be an interest in ensuring that our business is as profitable and competitive as possible but we generally try to work in the national interest as well, in this case the state interest.”

The next election is set for 2024.