NewsBite

Palmer blames Turnbull for nickel plant failures

Clive Palmer wrote to Malcolm Turnbull to blame his government for the collapse of Queensland Nickel.

Clive Palmer accused the government of failing to give business a level playing field.
Clive Palmer accused the government of failing to give business a level playing field.

Mining magnate and one-time ­politician Clive Palmer wrote to Malcolm Turnbull amid the ­collapse of Queensland Nickel, criticising the federal government for allowing Australian businesses to flounder while China propped up its resources sector.

Mr Palmer, who continues to be interrogated in the Federal Court over the demise of the refinery, which left nearly 800 Townsville workers unemployed, used parliamentary stationery to “make it ­absolutely clear” to the Prime ­Minister what he believed happened to Queensland Nickel.

His audacious February 2016 letter, under Mr Palmer’s then title as federal leader of the Palmer United Party, can be made public only because The Australian appealed to the Office of the Australian Information Commissioner.

The Prime Minister’s office had refused to release correspondence between Mr Palmer and Mr Turnbull under Freedom of Information laws because the Queenslander had not responded to five attempts to consult him.

The OAIC last week found no reason to keep the correspondence secret, prompting the office to release the material almost two years after it was requested.

In his letter, Mr Palmer reminded Mr Turnbull they had previously discussed the falling nickel price and criticised the commonwealth for not trying to “counterbalance” the forces pressuring the resources sector.

He noted that the Chinese ­government had provided direct ­financial support to its metals manufacturers.

“We have to remember that 22,000 jobs have been lost in Queensland in the resource industry because of declining resource prices, international manipulation of those prices and the failure of the government to even be alive to these issues,” Mr Palmer wrote.

He added that the government had “obfuscated its duty to ensure there is a level playing field”.

Queensland Nickel’s liquidators are still in court trying to claw back $300 million owed to creditors, ­including $70m to the federal ­government.

Throughout the two-page letter, Mr Palmer defended his role at Queensland Nickel and that of his managers, and also suggesting that he had “retired from business” and was only concerned with ­industrial policy failings in ­Australia.

Mr Palmer, a former Liberal ­National Party life member and conservative donor, also seized on criticism of Queensland Nickel ­donations to the Palmer United Party.

“As you should be aware, in the years prior to 2013, the political party which you lead was the ­beneficiary of substantial donations from Queensland Nickel Pty Ltd,” Mr Palmer told Mr Turnbull.

“I have heard no such criticism in respect to those donations.”

Original URL: https://www.theaustralian.com.au/news/investigations/clive-palmer/palmer-blames-turnbull-for-nickel-plant-failures/news-story/fc5c1fd9fcf631a8e89c58d81ab80a57