Queensland election 2017: Premier says Adani veto shows leadership

Annastacia Palaszczuk insists her veto of a $1bn loan for the Adani mining project shows leadership

Annastacia Palaszczuk at Oxenford on the Gold Coast yesterday. Picture: AAP

Queensland Premier Annastacia Palaszczuk insists her bid to veto a $1 billion loan for the Adani mining project shows leadership and honours a Labor commitment — even though a rival ­project with links to the government will still be considered for funding.

Labor’s re-election campaign has been overshadowed by integrity issues after Ms Palaszczuk, in an attempt to eliminate a conflict of interest involving her partner, on Friday announced she would veto any loan to Adani from the federal Northern Australian Infrastructure Facility.

It was the opposite of what the state’s Integrity Commissioner, Nikola Stepanov, advised the Premier to do, but Ms Palaszczuk yesterday declared she acted in accordance with a Labor commitment not to provide taxpayer funds to the Indian conglomerate. The proposed loan — to build a common user rail line in the Galilee coal province — is one of the most contentious aspects of the $16.5bn project, which is fiercely opposed by the Greens and environmentalists.

Constitutionally, any federal loan must be signed off by Queensland. The controversy has raised questions about investment certainty in the state.

The Premier’s partner, Shaun Drabsch, works for PricewaterhouseCoopers and helped handle Adani’s application for the NAIF loan. Ms Palaszczuk on Friday claimed to be pre-empting a smear campaign being ­orchestrated by federal conservatives, and sought Liberal Nat­ional Party support for the veto without success. To manage the conflict of ­interest, Ms Palaszczuk had initially proposed to sit out of Cabinet Budget Review Committee meetings involving Adani. But when she sought the approval of the Integrity Commissioner she was advised to sit out of all NAIF discussions.

Ms Palaszczuk yesterday said she would instruct CBRC to veto the loan altogether if Labor was re-elected and consider other NAIF matters without her. That could potentially include an application from Aurizon, Australia’s largest rail freight operator, which has sought NAIF funding for a rail line to the Galilee Basin that it says would cost less than Adani’s proposal. The state government is a major shareholder in Aurizon and it is unclear whether advice has been sought on any conflict of interest. Ms Palaszczuk said she was not aware of matters going before CBRC and it wouldn’t meet again until after the election.

It also emerged Mr Drabsch had been involved in work on the Gold Coast light rail and Rookwood Weir projects, which both need state government approvals and investment for future works. Ms Palaszczuk — who said she found out about her partner’s involvement with Adani only last Tuesday — was initially unaware of those links yesterday but her office later suggested his involvement was only at a council level.

Federal Resources and Northern Australia Minister Matt Canavan last night said that by going against the Integrity Commissioner’s advice Ms Palaszczuk had “tainted the Queensland government’s NAIF processes” and failed to provide a level playing field. “This is no way to run a state because Queensland investments and jobs are now held hostage by what the Premier’s partner may say in his sleep,” Senator Canavan said.

Although controversial, the Adani project has had bipartisan support in Queensland, with the loan considered a necessity after Australia’s big four banks turned their backs on the project amid protests.

Ms Palaszczuk said she did not go back to the Integrity Commissioner to discuss a veto. “I accept the Integrity Commissioner’s advice, however, in relation to the loan, in relation to Adani, I’ve made it very clear, and I’ve said this to Queenslanders before, our previous commitment was not one single dollar of taxpayers’ money would go towards that project, and I stand by that commitment,” he said.

While the decision brings Queensland Labor in line with the national policy position — Opposition Leader Bill Shorten yesterday reiterated “federal Labor will not support taxpayer money going to the Adani coalmine, full stop” — its 2015 election commitment had centred on state funding. For months, the Palaszczuk government, particularly Treasurer Curtis Pitt, has backed NAIF funding for Adani, at one stage suggesting the money go directly to the Indian conglomerate and then calling for the process to be fast-tracked.

LNP leader Tim Nicholls yesterday said Ms Palaszczuk’s sudden change of heart was “clearly designed to win Green preferences” ahead of the November 25 election.

“It certainly seems to be overkill and it may well kill a project that would create 10,000 jobs in regional Queensland,” Mr Nicholls said.

Senator Canavan questioned whether Ms Palaszczuk’s decision would affect business confidence in Queensland under Labor but when The Australian attempted to ask the Premier a similar question she walked away without answering.

Adani has yet to comment. Fortescue chief executive Nev Power and Woodside Petroleum chief Peter Coleman yesterday said business needed certainty of policy and processes and for governments not to stand in the way of investment.