Star’s obligations for Queen’s Wharf project ‘weren’t met’: Premier
Queensland Premier David Crisafulli says the Star Entertainment Group failed to honour the agreement with the government that allowed the Queen’s Wharf development to go ahead.
As he considers what – if any – tax concessions the government might offer the company to keep its casino business afloat, Crisafulli expressed concern that Star had previously failed to keep its promises in Queensland.
Star told the Australian Stock Exchange this week it faces “material uncertainty” going forward.
Queensland Premier David Crisafulli says Star has not lived up to its commitments.Credit: Joe Ruckli
As well as negotiating with lenders, Star has pleaded for help from state governments. The company runs casinos in Sydney, the Gold Coast and Brisbane, the latter through the Queen’s Wharf joint venture.
On Tuesday, Crisafulli appeared to leave the door open to Star, but made a point of saying the company had previously failed to keep their side of the bargain with taxpayers.
“We’ll have lots of conversations, provided they’re focused on keeping people in work, and that involves that building remaining open and for it to be able to serve the purpose that it was initially set up for – that was always the terms of conditions of that development occurring,” he told a William Street media conference.
Queen’s Wharf is Star’s newest casino, but one that has left the company facing high debts.Credit: Glenn Campbell
“There were also other terms and conditions that weren’t met and whilst our focus right now is only on the workers in continuing that operation, there will be a very big focus in the future about what negotiations happened behind closed doors to enable them to not fulfil their bargain that they signed up to.”
When pushed for some clarification about which terms and conditions Star had failed to meet, Crisafulli’s office remained tight-lipped.
Comment has been sought from Star.
As part of the government’s agreement for Queen’s Wharf, the Destination Brisbane Consortium – consisting of Star, Hong Kong-based Chow Tai Fook Enterprises and Far East Consortium – was required to pay the government $272 million before the new casino opened.
When asked about that agreement last September, a spokesman for then-treasurer Cameron Dick said: “In regards to the payments to the state government, the company has fulfilled its obligations.”
The agreement also required gaming tax payments totalling at least $880 million over the first decade of operation.
However, a $9.6 million gaming and payroll tax liability was reportedly deferred last year. Queensland Treasury has been contacted for comment.
There were to be 8000 employed at Queen’s Wharf once it was fully operational. About 6000 people currently work in the precinct, but it still lacks many of the promised retail and hospitality outlets and hotels.
Under the agreement, a further 2000 were to be employed during construction – a benchmark Crisafulli hinted may not have been met.
“There are job opportunities that weren’t created because deals by the company weren’t honoured, and a big part of that is because of the militant behaviour of the CFMEU, which made things in the mind of the market far more challenging than what they should have been,” he said.
Crisafulli said he had no idea about Star’s viability going forward, and that he was only interested in workers’ job security.
“My concern is the people who work for them, and whoever they work for today or tomorrow, whether it’s the same company or a different one, whether an administrator is there or not,” he said.
“I just want that place to be open, and I want as many people as possible to have a job.
“That’s it for us.”
The Queen’s Wharf Residences are due to open this year, as delays and cost over-runs continue to frustrate sales contracts for apartments across the precinct. Minor Hotels, which handles the Oaks brand in Brisbane, has been engaged to let out apartments as short-term rentals or hotel rooms.
The construction schedule for future towers has yet to be finalised, leaving heritage-listed buildings fronting George Street under a cloud.
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