Ex-Labor premier to lead Qld gas royalties review

Treasurer Jackie Trad has been accused of “outsourcing” her job, after it was revealed a former Labor premier would be reviewing Queensland’s gas royalties regime.

A FORMER Labor premier has been appointed to lead a review into Queensland’s gas royalties regime.

The Courier-Mail can reveal former South Australian premier Jay Weatherill is heading the review, announced by Treasurer Jackie Trad in June alongside a decision to increase the petroleum royalty rate from 10 per cent to 12.5 per cent, netting the state an extra $476 million over four years.

Former SA premier Jay Weatherill will review Queensland’s gas royalties regime.

Mr Weatherill’s review will be handed to the State by the end of the year. His wage has not yet been released.

The appointment earned an instant rebuke from Deputy LNP Leader Tim Mander who accused Ms Trad of “outsourcing” her job.

“Queensland taxpayers shouldn’t be slugged for a failed Labor Premier to review royalties,” he said. Ms Trad’s spokesman, however, said Mr Weatherill was appointed after a request from industry that the royalties review be independently led.

“The review of the design of Queensland’s current petroleum royalty regime will ensure greater certainty and equity for all parties,” the spokesman said.

“It will also consider if there are opportunities to simplify the current regime, while providing an appropriate return to Queenslanders.

“Mr Weatherill’s experience in developing South Australia’s gas industry gives him a unique insight into the range of factors to be considered when looking at Queensland’s gas royalty regime.”

As premier, Mr Weatherill unveiled a plan to reward SA farmers with a cut of the royalties for gas extracted from their land, among other incentives to increase domestic supply.

Australian Petroleum Production and Exploration Association chief executive Andrew McConville said the industry wanted the review to be solid and independent and he welcomed Mr Weatherill’s appointment.

“We are really keen to work with him, to work through the issues and what the options are and make sure that we ultimately get in place a model... that’s in the best interests of the state and continues to support the development of the industry,” Mr McConville said.

“We met with Jay on Monday. It was a very positive meeting. He is very open to any and all ideas and that’s what we want.

“We all want two outcomes.

“One is a good return on the resources that are owned by the people of Queensland but equally a framework that provides enough certainty and clarity to the industry to continue to invest and grow.

“That’s not going to be an easy task. The current regime certainly needs looking at in terms of its efficiency and effectiveness. We want to get it right... It needs to work and it needs to be put in place for the long term.”

Mr McConville, however, cautioned against rushing the review due to the tight, end-of-year deadline.

“The industry would prefer to make sure that we get it right rather than necessarily be stuck to a timetable,” he said.

“I understand the government’s imperative and we absolutely share the sense of urgency but let that not be our master. We have to get this right.”