Taxpayers could bankroll Clive Palmer pursuit

Taxpayers could bankroll a liquidator’s pursuit of Clive Palmer, as the government aims to recover up to $74m in entitlements.

Taxpayers could bankroll a liquidator’s pursuit of Clive Palmer, as the government aims to recover up to $74 million in entitlements promised to employees of the self-described billionaire.

The MP for Fairfax also faces investigation by corporate regu­lators, with a union leader urging the Australian Securities & Investments Commission to “sink its teeth” into the businessman and his nephew and close associate Clive Mensink.

Government MPs could also refer Mr Palmer for a privileges committee investigation if they suspect Mr Palmer’s actions have been contemptuous of parliament.

Liquidation of Queensland Nickel would automatically trigger the Fair Entitlements Guarantee — a taxpayer-funded safety net that would ensure most of the workers’ unpaid entitlements — and make the commonwealth a priority creditor of the business.

Bill Shorten yesterday wrote to Malcolm Turnbull urging the government to expedite the flow of FEG funds.

The government would also be cleared to activate the FEG Recovery Programme, a public fund to support debt recovery efforts, including lawsuits, that the liquidators otherwise could not afford.

FTI Consulting voluntary administrator John Park said federal government or external funding would be sought to pay for the post-liquidation pursuit of QN’s debts from Mr Palmer’s other companies and from Mr Palmer and Mr Mensink personally.

The Coalition has resisted opposition calls to invoke the FEG ahead of liquidation, hoping the company would trade its way out of trouble or Mr Palmer would heed public pressure to shore up workers’ entitlements.

Employment Minister Michaelia Cash said the government was “carefully considering” the contents of the creditors’ report “as a matter of priority”. “We will use the report to inform any decisions on whether to release FEG funds early,” she said.