Ian Macfarlane pledges to ‘fight’ coal royalties in ferocious Mackay speech

The powerful QRC says the impact of Queensland’s royalties increases will be worse for the coal sector than the Ukrainian conflict and China ban. SEE THE INTERVIEW

The impact of the state government’s royalties hike will do more damage to Queensland’s prosperity than the Ukrainian conflict and China’s import ban, the Queensland Resources Council chief says.

Ian Macfarlane has pledged to “fight back” against the increase and used the mining sector’s night of nights to call out Treasurer Cameron Dick.

“China’s trade ban on Australian coal, Russia’s invasion of Ukraine and its impact on global markets, a third wave of the global pandemic, a critical skilled worker shortage, but out of everything resources companies have had thrown at them recently, nothing compares to the direct action taken against our sector last month by the Queensland government when it increased coal royalties to the highest rates in the world,” he said.

“This was done almost overnight, without consultation.”

Mr Macfarlane elaborated on the full impact on the sector the following day.

“An extra $7bn to 10bn will be collected from the industry over this current financial year on top of the $7bn or $8bn which it was already going to collect,” he said.

“So we’re looking at a royalty number of $16bn.

“That comes out of the pockets of investors.

“Shareholders, superannuation funds, those people who have made a long-term commitment to this industry and it affects the long-term viability of the industry and the appetite that investors have to invest here in Queensland.

“So jobs will go in the future, new mines won’t be opened, existing mines won’t be expanded and regional Queensland will be hit the hardest.”

Mr Macfarlane said the state’s powerful mining companies would not take the government’s policy lying down.

“Our industry will campaign very hard against this rise,” he said.

“We will continue to work with government where we can but they need to understand we need to be able to ride the highs and the lows in this industry.”

Mr Macfarlane said one part of the campaign would involved a messaging blitz aimed directly at Queenslanders from Brisbane to Moranbah.

“If the government wants to talk to us we will but in the meantime we will talk directly to Queenslanders,” he said.

“We will explain to people how much they need the resources sector, how they use coal every day, for the roof on their house, for the steel in their buildings, for the steel in their cars and to keep warm at night when the sun is not shining.”

Mr Macfarlane hinted the QRC and its members could do more than run advertising or persuasion campaigns, but would not be drawn on details.