Queensland Nickel: Early release to cover wages and leave

UPDATE: A Queensland MP has broken down at a press conference as he discussed the future of his constituents — but another politician reckons it’s “crocodile tears” and “pathetic”.

Member for Herbert Ewen Jones with the Minister for Employment, Senator the Hon Michaelia Cash in Townsville. Picture: Evan Morgan

THE federal government will take unprecedented action to ensure Clive Palmer and his businesses repay money stripped from Queensland Nickel.

Employment Minister Michaelia Cash says the government will fund some of the more than $70 million in entitlements owed to almost 800 sacked workers.

“The commonwealth is now one of the largest creditors of Queensland Nickel. The commonwealth will use its rights as a creditor under the Corporations Act, to seek to appoint a special purpose liquidator to pursue the recovery of this $73 million that has been ripped off from employees,” she told reporters in Townsville on Friday.

Senator Cash said early indicators suggested most workers would get most of what they’re owed under the Fair Entitlements Guarantee scheme.

“It looks at first glance that the majority of employees should receive the majority of their entitlements,” she said.

Herbert MP Ewan Jones broke down when speaking about the announcement.

“This is a tough day, even though this is a great announcement,” he said.

“This is a tough day in Townsville because this says this is the end of the line for a lot of these people.

“This is taxpayers’ money and no-one in Queensland Nickel who has lost their job wants to have taxpayers’ money.”

Mr Jones said every responsible Queensland Nickel member would be pursued.

“It’s not just Clive Palmer,” he said.

“Our city is bigger than Clive Palmer and we’ll get over him.

Member for Herbert Ewen Jones with the Minister for Employment, Senator the Hon Michaelia Cash in Townsville. Picture: Evan Morgan

“But everyone has been part of this, everyone who has signed a cheque to send money that should be going towards the operation of the nickel refinery that has gone to something else.”

The Australian reports Labor’s Brendan O’Connor has attacked Townsville-based MP Ewen Jones as “pathetic” for the emotional display.

Mr O’Connor trained his attack on Mr Jones, accusing him of trying to “rip off” refinery workers by supporting an Abbott-era bill to pare back the taxpayer-funded safety net for the sacked workers.

“I have to say it was quite pathetic to see the Member for Herbert, Ewen Jones, cry crocodile tears today because Ewen Jones, along with Malcolm Turnbull and Senator Cash, voted to cut the Fair Entitlements Guarantee down to 16 weeks … so they were seeking to rip off QNI workers,” he said in Melbourne.

“Ewen Jones hasn’t been speaking to these workers. Instead, he voted to cut their entitlements under law … I think he has concern for one job, and that’s his own job.”

State Treasurer Curtis Pitt has welcomed the Federal Government’s decision to help cover the entitlements of Townsville’s retrenched Nickel refinery workers.

But he slammed the Commonwealth for taking so long to step in.

“We really think that the Federal Government could have acted sooner,” Mr Pitt said.

“The writing has been on the wall for some time.

“Whilst we have only just seen a report from the administrators, it’s been very clear that there is a lot of people that are hurting in the Townsville region.

Not only those people directly affected by the retrenchments at the plant but of course more broadly into that community, people affected as suppliers, people who rely on people spending in that local community.

“People have had a great deal of uncertainty.

“We welcome the Federal Government’s acceptance that they need to implement the Fair Entitlements guarantee but of course also the fact that they are going to go after and try to recoup additional money to offset any taxpayer payment of the entitlements.”

The state-owned Port of Townsville is a Queensland Nickel creditor and Mr Pitt said it was hoped the entity could recoup some of the money it is owed as well.

OVERNIGHT: Clive Palmer’s empire faces being picked apart in a protracted battle as the Federal Government vows to reclaim $73 million in entitlements owed to scorned ex-workers.

Employment Minister Michaelia Cash last night flew into Townsville where she will today announce an early release of money under the Fair Entitlements Guarantee to cover the wages and leave owed to retrenched Queensland Nickel workers.

The move ratchets up the pressure on the self-­proclaimed billionaire as the Commonwealth imme­diately moves to recoup the money flowing from the ­taxpayer-funded safety net.

As bureaucrats fly into north Queensland to help workers access payments, Senator Cash will seek the appointment of Stephen Parbery from PPB Advisory as Special Purpose Liquidator to work alongside the ­appointed liquidator to maximise the recovery of money to meet employee ­entitlements.

And she said the Government would use “every power” to fully investigate the “many suspect issues” identified by administrators FTI Consulting, who reported Mr Palmer had used the company as his personal “piggy bank” and acted as shadow director — a claim Mr Palmer denies.

“We are doing this because of the unique and alarming circumstance in this case where a current member of Parliament and self-reported wealthy Australian businessman is directly involved,” Senator Cash said last night.

“The Government wants to send a clear message that in appropriate cases the Government is prepared to step in to assist in ensuring that employee entitlements are recovered in full from any companies or individuals that have profited from the endeavours of hardworking Australians.”

Senator Cash said taxpayers could “rest assured that the Government will use every power at its disposal to ensure the corporate dealings of this joint venture arrangement are thoroughly investigated and responsible company officers are held to account”.

The report by FTI Consulting identified more than $224 million in payments made in the five years to January to Mr Palmer’s related parties, including the Palmer Leisure Coolum, Blue Star Line (Titanic II builder) and Mineralogy.

QN also financed $11.55 million for the Gold Coast’s Avica Resort and the purchase of 60 vintage cars and a Cessna aircraft, which left it a further $10 million out of pocket.

The report said a liquidator could potentially pursue the payments.

Senator Cash said the release of money under the Fair Entitlements Guarantee meant an end to the financial uncertainty that has plagued nearly 800 sacked workers for months. “The release earlier this week of the administrator’s report to creditors makes it clear there is no ­rescue option on the table for Queensland Nickel Refinery,” she said.

Creditors vote next week on whether to accept FTI Consulting’s recommenda­tion to wind up QN.