Qld resources body hits 2.5% petroleum royalties hike in Budget
A State Budget measure will cost jobs and make the state’s has less competitive, Queensland’s peak resources body has claimed.
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QUEENSLAND’S peak resources body has savaged a decision to hike petroleum royalties by 2.5 per cent, claiming it will make the state’s gas less competitive and cost jobs.
About $450 million will supplement the state’s coffers from petroleum royalties in 2018-19 – soaring to $577 million during the following financial year.
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The hike, which will jump from 10 to 12.5 per cent from July 1, will see a dividend return of $476 million in coming years.
However Queensland Resources Council chief executive Ian Macfarlane slammed the move, claiming the hike equated to 25 per cent.
“This will make Queensland gas less competitive and will risk jobs and future investment and the creation of new jobs,’ he said.
“It will also make lower emission energy generated from gas more expensive and increase the cost of gas to manufacturers such as Incitec Pivot in Brisbane.”
Mr Macfarlane said Queensland was the only state on the east coast that was developing its gas resources.
“This tax hike risks the gas supply for all Australians, not only Queenslanders, given Queensland gas suppliers have been doing all the heavy lifting for the gas market,” he said.
Treasurer Jackie Trad yesterday defended the hike, insisting it was “still a very fair outcome”.
“10 years we were exporting zero,” she said.
“As of last year we were one of the top three exporters.
“To get that industry up and running there are a number of arrangements that were put in place to really stimulate investment in the industry and those arrangements, I think it’s time for us to review them.
“At 10 per cent royalty rate particularly when LNG exports are growing at a rate of over 40 per cent, we believe it’s time for that industry to do a bit more.”
As promised, there was no royalty hike for coal in 2019-20 following the Government’s ultimatum that miners pay $70 million into a “voluntary” infrastructure fund in exchange for a three-year royalty freeze.
However while the sector is yet to chip into the fund, the Government has allocated its $30 million as part of the deal.
Budget papers revealed while the state’s coal royalties were expected to decrease by $24 million during the next financial year, the Palaszczuk Government will rely on the sector to contribute more than three times any other royalty during 2019-20.
However despite the state’s dependence on coal royalties, Treasurer Jackie Trad failed to mention the word “coal” while directly spruiking Queensland’s resources sector in her official budget speech yesterday.
Instead, she said the North West Minerals Province’s potential needed to be unlocked.
“That’s why this Budget invests in new initiatives to promote exploration, mining and exports in the North West Minerals Province,” she said.
“This includes common-user facilities at the Port of Townsville – open for use by any above-rail operator.”
Opposition Leader Deb Frecklington said the gas hike would drive investment offshore and cost jobs.
“It proves Labor is anti-resources, anti-regions and anti-jobs,” she said.
“It shows Annastacia Palaszczuk hasn’t listened to regional Queenslanders.”
Anglo American’s Moranbah North Mine’s health and environment manager Chris Moger, who lives in Moranbah with wife Emma and their two young daughters, said as a mining family, they welcomed any support given to mining companies.
Ms Moger also said the Moranbah community was heavily reliant on the industry.
“Both of our jobs rely heavily on the success of the industry,” she said.
“Any investment in regional communities in Queensland is always welcomed.”
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