Scott Stewart slams QRC Janette Hewson’s request for lower royalties
The Queensland Resources Council want lower royalties from the next state government to encourage investment, while Scott Stewart reckons it’s all part of the cost of doing business.
Mackay
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A major mining body’s call for lower royalties to encourage investment in Queensland has been rejected out of hand by resource minister Scott Stewart, who said they keep multinational coal company profits in the state.
The Queensland Resources Council outlined its priorities for the upcoming state election and intentions to “enrich regional communities” despite advocating for lower royalties.
QRC Chief Executive Officer Janette Hewson said that there was a drop off in new projects proceeding compared to previous years.
“If I were to compare it to 2013 when coal prices were at a similar level to where they’re at today, there were 440 mt of new projects in the pipeline,” Mrs Hewson said.
“Now what we’re seeing is only 170 mt.”
Mrs Hewson attributed the decrease to harsher royalties and warned Queensland Resource Council members might take their business to NSW or outside Australia.
“We’ve got to be competitive, capital can be invested anywhere around the world,” she said.
When asked if the slow in development could be attributed to an expected global peak in demand for thermal and metallurgical coal in the near future, Mrs Hewson emphasised the importance of coal as a power source and smelting fuel.
“Net zero can’t be achieved without the resources sector and Queensland and Australia must have affordable and reliable energy security while we transition to a decarbonised future,” she said.
In their election priorities, the QRC said they want a ‘fair return’ to the regions, with Mrs Hewson specifying upgrades to the Peak Downs Highway as a potential benefit.
Resources minister Scott Stewart called this commitment “fantastic” before pointing out the $157 commitment the state government had already made to Bowen Basin roads like the Peak Downs and to community infrastructure.
“The Miles government is investing $25m in a brand new hospital in Moranbah,” Mr Stewart said.
“We’re investing not only back into the infrastructure but back into the people.”
Mr Stewart staunchly defended the current royalty system saying “it’s about time every Queenslander got a bit of that money coming back”.
“Think about the $1000 you’re getting back on your energy bill, the 20 per cent discount on your registration, $200 in sports vouchers to everyone of our kids.
“That’s coal royalties.”
While Mrs Hewson stressed the need to grow the royalty pool by streamlining mining approval processes and lowering royalties Mr Stewart emphasised that royalties were introduced to keep “huge profits of multinational coal companies in Queensland”.
“Every Queenslander owns those commodities that these coal companies take out of the ground.”
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