‘Sort it out’: Call for Albanese to intervene on Qld coal tax

Prime Minister Anthony Albanese has been challenged to come to the defence of Queensland mining communities after the State Government hiked royalties.

Prime Minister Anthony Albanese needs to step in and “sort out” the State Government’s royalties hike to show he is serious about coal workers, federal Liberal National MPs say, as another BHP executive unleashes at the controversial move.

BHP minerals president Edgar Basto, speaking to a room of business executives and politicians on Wednesday, warned resources companies would “think twice” about investing in Queensland with the impact not to be seen immediately.

BHP president (Minerals Australia) Edgar Basto

“The impact won’t be seen immediately, but over time it will affect investment, jobs and business opportunities, especially in Central Queensland,” Mr Basto said at The Australian’s Strategic Business Forum.

Federal Liberal National MPs have jumped on the growing war between the resources sector and State Labor Government.

Federal Opposition Resources spokeswoman Senator Susan McDonald said snap decisions on royalties, or broader regulatory change, created sovereign risk when it came to investment.

“The Federal Government should encourage the State Government to be more consistent and more reliable in their decisions. It affects all of Australia,” she said.

Member for Hinkler Keith Pitt said it was an opportunity for the Prime Minister to show support for the coal sector.

“The workers in the resources sector weren’t sure whether to trust Mr Albanese or not, but this will be a nail in the political coffin of the federal Labor Government if they don’t sort it out,” he said.

“Mr Albanese needs to pick up the phone and sort it out, because they need to protect the hard working coal workers.”

Opposition resources spokeswoman Senator Susan McDonald

A spokesman for Federal Resources Minister Madeline King said coal royalties in Queensland were a matter for the State Government.

“Royalties for coal are not set or received by the Commonwealth,” the spokesman said.

“There is always a balance to be struck to ensure the Australian people receive a fair return for the development of the resources that are their birthright.

“Australia has always been, and will remain, a long-term reliable energy supplier and a stable and secure destination for investment.”

Under the scheme companies now pay 20 per cent on the dollar when prices exceed $175 per tonne, 30 per cent on the dollar beyond $225 per tonne and 40 per cent when they exceed $300.

Treasurer Cameron Dick has previously defended the scheme, saying the resources sector is booming and the companies will still enjoy high profits.

“If prices go higher, any additional royalties generated would only be a fraction of the additional profits that coal companies would enjoy,” he said earlier this month.