Queen’s Wharf closure ‘worst case scenario’ as Steven Miles toys with Star lifeline

Steven Miles says the $3.6bn Queen’s Wharf precinct is too important to Brisbane to fail, adding ‘we want to do everything that we can to avoid that’.

Premier Steven Miles says the Star Casino is too important for Brisbane to lose. Picture: Richard Walker

Embattled casino giant Star Entertainment is pushing for the state government to defer its tax obligations in a last-ditch effort to keep the lights on at the new $3.6bn Queen’s Wharf precinct.

Premier Steven Miles said discussions about taxpayer help for Star were ongoing, but suggested the most likely support would be in the form of delayed gambling and payroll tax payments.

“There is a significant amount that would be due to be paid by them over the coming period of time while they are also experiencing financial difficulties,” he said.

Star Entertainment Group was suspended from trading on the ASX this week following delays lodging its financial results – where it is expected to post a $1bn impediment and reveal a battle to remain solvent.

New chief executive officer Steve McCann is lobbying the Queensland and New South Wales governments and banks for financial support

New South Wales has refused to intervene, declaring any support would fund the company’s Queensland expansion.

Premier Steven Miles at the opening of the Neville Bonner Bridge as part of the launch of Queen’s Wharf and the Star Grand Casino. Picture: Richard Walker

Mr Miles said it was a “pretty disappointing” response from NSW and said his focus was on supporting the thousands of workers at its newly opened Queen’s Wharf precinct.

“The worst case scenario would be that they have to close their doors not long after opening them, but we want to do everything that we can to avoid that,” he said.

“This is a fantastic asset for our city, it is a big job generator, it is a major attraction to our city and state.

“It is an important platform for Brisbane 2032 and everything that we’re going to do in our city over the next decade.”

The Premier said it was “not unusual” for the state government to support projects with large capital costs where significant employment is the dividend.

The Star Grand has only just opened at the Queen's Wharf precinct in Brisbane. Picture: Richard Walker

Star’s tax obligations would not be waived, but could be deferred, Mr Miles said.

“Star will be required to pay all of its taxes, all of its license fees,” he said.

“We’ve just received those approaches, and there’s ongoing discussions.”

One possible scenario would see the break up of the company, with Queen’s Wharf being taken over by Star’s Chinese partners in the Destination Brisbane Consortium.

Pub king Bruce Mathieson, whose company is the biggest single shareholder in Star, could acquire the Gold Coast casino, while Star Sydney would be acquired by Blackstone, the owner of Melbourne-based Crown Resorts.

Deputy Opposition Leader Jarrod Bleijie said Queenslanders should see a probity report into the suitability of Chow Tai Fook to operate the casino, and said the LNP wouldn’t commit to financial support until it had seen it.

“I am concerned, obviously, about the staff, but I’m also concerned about probity, accountability and transparency, and until those questions are answered we’re not going to have a position on what the outcome may be after the election,” he said.

Health Minister Shannon Fentiman - who ordered the report while Attorney-General - said the Department of Liquor and Gaming had viewed the report and deemed Chow Tai Fook suitable to operate Queen’s Wharf.

“There are a number of conditions that Star has to meet and I think people should have confidence that all of that work has been done,” she said.

Amid media reports the state government had joined Chow Tai Fook to block the release of the probity report, a spokesman for Attorney-General Yvette D’Ath said it was “not a party to the private civil proceedings involving Chow Tai Fook Enterprises”.

Originally published as Queen’s Wharf closure ‘worst case scenario’ as Steven Miles toys with Star lifeline