State firm pulls plug on Queensland Resources Council campaign
CS Energy and Powerlink will quit the Queensland Resources Council over the industry association’s campaign against the Palaszczuk government’s royalty hike.
State-owned power generator CS Energy and transmission operator Powerlink will pull the plug on their membership of the Queensland Resources Council over the industry association’s campaign against the Palaszczuk government’s royalty hike.
As a full member of the QRC, CS Energy had been asked to pay a levy to help fund the advertising blitz, reported to be worth $40m.
The company has refused and told the QRC it was opposed to its membership fees being used for the campaign.
After pressure from Treasurer Cameron Dick and Energy Minister Mick de Brenni, who are shareholding ministers of CS Energy and Powerlink, the companies have decided not to renew their membership.
“Neither CS Energy nor Powerlink will be renewing their membership of the QRC,” a government spokesman said.
“Nor will they be contributing to the QRC’s $40m campaign.”
The royalty hike, announced in the June budget, has led to a bitter falling out between the Palaszczuk government and the QRC, which says the increase in royalty rate risks making the state’s lucrative resources sector uncompetitive.
The tension was exacerbated last week when the QRC launched a two-year Keep Queensland Competitive campaign, prompting Premier Annastacia Palaszczuk to order that none of her ministers was to attend the QRC’s annual State of the Sector forum.
The advertising blitz will run across print, television and radio until the 2024 state election.
“The campaign is being run by the QRC on behalf of the state’s diverse resources sector to raise awareness about the world’s highest coal royalty taxes,” QRC chief executive Ian Macfarlane said.
“Membership subscription fees are not being used.
“Resources companies are extremely concerned about the impact of the Queensland government’s coal royalty increase on investment and jobs.
“We are asking the government to engage with the industry to keep Queensland’s resources industry competitive.”
The spat came after the government reneged on a pre-election commitment to not increase taxes by introducing a three-tier system that increased the state’s top royalty rate for coal from 15 per cent to 40 per cent.
It was forecast to raise an extra $1.2bn over the next four years, but the industry says that is an understatement and the sector would contribute about $4.5bn to the government’s coffers this year alone.
Mr McFarlane has slammed the decision as “short-sighted” and accused Mr Dick of using the resources sector as a “cash cow to plug up budget holes”.
TAFE Queensland is also a service member of the QRC but it is unknown if it will continue its membership.
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