Townsville Council redundancies fund $18.5 million contribution towards an airstrip for Adani’s Carmichael coal mine
MORE than 140 people are being made redundant at Townsville Council and $18.5 million in savings will go towards an airstrip for Adani’s coal mine.
GAIL Hamilton was made redundant this year after working at Townsville Council for five years — one of more than 140 staff that will be let go during a restructure.
The waste water co-ordinator, who has run as a Greens candidate at state and federal elections, has struggled to find a job since she took a voluntary redundancy on June 30.
But what makes her really angry is the realisation she was just one of many workers whose position was sacrificed so council could help Adani build its “job-boosting” coal mine in central Queensland.
The irony is not lost on the Townsville resident.
“I was so p***ed off (when I heard),” Ms Hamilton said.
“That so many hardworking council workers have been given the boot ... and we’re giving Adani money for a project that may never happen and shouldn’t happen.”
In a release titled “Jobs Bonanza for Townsville”, Townsville Council announced on October 5 that it would jointly invest with Rockhampton Council, to build a $30 million airstrip at the Carmichael mine — more than 600km away — for fly-in fly-out workers.
Each council will chip in about $15 million for the remote airstrip, with Townsville authorising expenditure of up to $18.5 million. The investment is aimed at securing 2200 construction jobs for their residents.
In the release announcing the investment, Mayor Jenny Hill said independent advice from KPMG confirmed the local economy would benefit from the deal to the tune of more than $90 million a year.
“We have further secured commitments requiring Adani to source a third of mine and infrastructure construction workers from Townsville which will mean up to another 1200 local jobs,” she said.
“This is fantastic news for the city, and offers new hope to those left without jobs when QNI (Clive Palmer’s Queensland Nickel refinery) closed its gates almost two years ago.
“North Queensland hasn’t seen a project of this size in decades that will deliver the jobs boost Townsville so sorely needs.”
It’s welcome news for an area that’s experienced the second highest rise in unemployment in Australia over the past five years.
But it was cold comfort to Ms Hamilton, who is unlikely get a job with the mine but whose redundancy is helping to fund a private airstrip located outside the council area.
At the bottom of the release, Mayor Hill noted that council’s $15 million investment would be funded from its existing resources over two financial years, “made possible by the belt tightening undertaken as a result of the reform process of the last 12 months”.
When asked whether the mayor was referring to the 144 council staff expected to be made redundant, a council spokesman said the restructure was based on recommendations from an independent management consultant — the Nous Group — and would deliver savings of $27.6 million across this financial year.
To date, savings of $14 million has been achieved.
“The restructure has reduced costs for our ratepayers while maintaining the high levels of services provided to the Townsville community,” the spokesman said.
“No forced redundancies have occurred as a result of the restructure.”
But Ms Hamilton, who recently joined Frontline Action on Coal aimed at stopping Adani’s mega mine from going ahead, said she felt like she was bullied into accepting a redundancy package as she was given no information about her alternatives, and is also not happy about where the financial savings were going.
“That is a clear statement that said council has sacked about 100 people to build an airport for a private, foreign company for a mine that still may not go ahead,” Ms Hamilton said.
“I’m highly frustrated,” she said. “My livelihood is not worth anything to council, which is investing in potential jobs for other people.”
The decision has also created a backlash among other residents, who say the decision was made in secret and don’t want their money going to Adani. A petition to reverse the funding agreement has already got more than 50,000 signatures.
Like many others Ms Hamilton, 47, is also sceptical about statements that local people will get jobs at the mine.
“There’s no guarantee any position will go to Townsville locals,” she said.
But the Townsville Mayor told news.com.au there were strong financial protections for ratepayers built into the deal.
“If Townsville doesn’t receive the amount of jobs it has been promised then council is entitled to a financial rebate,” Cr Hill said in a statement.
“There will be plenty of checks in place to make sure these 900 jobs are going to people living in Townsville as part of the deal.
“There are also protections to ensure Council doesn’t spend money on the airstrip if the mine does not proceed.
“As part of the deal, council will receive a guarantee — similar to an insurance or bank bond of our choosing — that we will get our money back if the mine doesn’t go ahead.
“Townsville ratepayers will not be financially penalised if the mine does not proceed.”
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Ben Pennings, spokesman for Galilee Blockade, said the council should be putting the money towards other priorities.
“Townsville Council should invest to fix the local water crisis rather than give ratepayer’s money to a thirsty mega-mine with an unlimited water licence,” he said.
“(The owner of the mine) Mr Adani is worth $11 billion. He should risk his own money on this dirty and dying industry, not ours.”
Concerns about Adani’s mine are threatening to become an election issue with anti-Adani protesters interrupting Queensland Premier Annastacia Palaszczuk’s launch of the state election.
Anti-Adani groups are promising to dog the premier as she makes her way around the state.
Adani’s Carmichael mine has been one of the most polarising issues of Ms Palaszczuk’s time in office, with environmental groups furious the mine is going ahead.
Queensland Greens South Brisbane candidate Amy MacMahon said Adani would be forefront of the election campaign.
“We have a Labor government that are intent on giving a dodgy multinational mining company a billion dollar loan from the federal government and a $300 million royalties deal for a project that will create next to no jobs and provide very little benefit to Queenslanders,” Ms MacMahon said. “We can be doing much better with this public money.”
— With AAP
Email: charis.chang@news.com.au | Twitter: @charischang2