Billionaires must pay way

Clive Palmer has no excuse for dipping into the public purse.

Queensland Treasurer Curtis Pitt has plenty of good reasons to be extremely cautious about handing over $40 million to bail out Clive Palmer’s Queensland Nickel refinery in Townsville. The jobs of almost 800 workers and their family finances are at stake. But the refinery is not a state enterprise. Mr Palmer owns it, which is why he was entitled to sink $15 million from the enterprise into his Palmer United Party last year. Nor are his financial problems at the refinery anything to do with Citic, his estranged Chinese business partner. On Monday, during a West Australian Supreme Court case over disputed royalties at the Sino Iron magnetite project in the Pilbara, Mr Palmer’s barrister warned that unless Citic handed over $US48 million ($66m) the Townsville refinery would collapse the next morning. It didn’t. And Mr Palmer, begging bowl in hand, flew to Brisbane to lobby Mr Pitt to provide a $40m loan guarantee.

Mr Palmer’s attempts to lever Citic and Queensland taxpayers to solve his cash flow crisis was a poor reflection of his concern for his workforce. The refinery is vital to Townsville’s economy and the jobs it provides are a cornerstone of the city’s economy. But Mr Palmer’s case to be allowed to dip into the public purse is weak. Any direct assistance provided to a private firm would set a bad precedent. As Mr Pitt said on Wednesday, most people would expect Mr Palmer to “pull out all the stops to ensure he is using his broader wealth and his broader business empire to ensure this plant remains open’’. Last week, responding to a reported offer of $32m for his resort on Queensland’s Sunshine Coast, Mr Palmer said he would reject offers for the complex, set on 150ha with a championship golf course and a tennis centre. Mr Palmer’s other assets are extensive.

For years, much of the media has given Mr Palmer an easy run. But his approach to Queensland’s Labor government has prompted increased scrutiny of his claims and business record. In April 2013, when he flounced out of Queensland’s Liberal National Party, of which he was a life member, Mr Palmer, became an avowed enemy of Tony Abbott and former Queensland Premier Campbell Newman. As such, he was courted by the green-Left media, especially the ABC. As the love media focused on Mr Palmer’s rantings against federal and state budget austerity measures, essential to reverse worsening deficits, he was allowed emerge with an image as a billionaire socialist with a taste for flashy cars. While Hedley Thomas doggedly pursued Mr Palmer’s record, few others subjected him or the Palmer United Party candidates such as Jacqui Lambie in Tasmania or Glenn Lazarus in Queensland to the pre-election scrutiny voters had a right to expect. Both senators left the PUPs shortly after being elected.

Five years ago, to celebrate making $200m from the nickel refinery, Mr Palmer staged a $10m Christmas bash with Fijian holidays and new Mercedes-Benz B180s as gifts for staff. The extravaganza is long over, but Mr Pitt believes Queensland Nickel should be able to trade through its financial difficulties and remain viable. It is now up to its self-proclaimed billionaire owner, not taxpayers, to provide the resources.