By Hamish Hastie
The High Court has rejected an attempt by mining billionaire Clive Palmer to scrap legislation that shielded the state of Western Australia from a compensation bill of up to $28 billion.
On Wednesday morning, the full court rejected Mr Palmer’s arguments that the legislation was unconstitutional.
The eleventh-hour bill, which altered a state agreement between Mr Palmer and the government, was rushed through WA Parliament in August 2020 to block the billionaire from claiming compensation he said he was owed over the stalled Balmoral South iron ore project in the Pilbara.
At the time the legislation was tabled, WA Premier Mark McGowan said that compensation figure could reach up to $28 billion and bankrupt the state.
The dispute stems from former WA premier Colin Barnett’s refusal in 2012 to formally assess Mr Palmer’s company Mineralogy’s proposed mine 80 kilometres south-west of Karratha, which the billionaire claims breached a state agreement inked in 2002.
Mr Palmer wanted to develop the project and sell it to a Chinese-owned entity, which the government refused to allow.
He said the government’s intervention to strip him of his right to compensation was unconstitutional and would deter companies from investing in WA in the future.
The High Court hearing, in which Mr Palmer represented himself, concluded in June after four days of legal arguments from Mr Palmer, his company Mineralogy, and the State of Western Australia.
The full bench assessed various questions of law raised by Mr Palmer but found the amendments were valid.
“The facts and documents identified in the special case provide no basis on which to be satisfied of the necessity of answering questions as to the validity of any other provision of the State Act,” they said.
WA Premier Mark McGowan described it as a “monumental victory” for West Australians.
“The judgment in the High Court confirms we did the right thing. We did the right thing in stopping Clive Palmer taking this state for $30 billion. That would have been $12,000 each for every man, woman and child in this state,” he said.
“We win every single time in the courts against Mr Palmer. I think it’s time he cut his losses.”
Attorney-General John Quigley said the case would see Mr Palmer pay about $1 million in costs to the state government, which would take his tally of costs owed to the state to about $2 million after his failed border challenge last year.
Mr Quigley said if Mr Palmer didn’t cough up the money, he would seize the billionaire’s luxury jet.
“All I can say is that if he brings that luxurious huge jet back into Western Australia and lands that here I’m going to have the sheriff seize it, and he can go back east by train,” Mr Quigley said.
During his final submissions to the case, Mr Palmer said the multibillion-dollar figure quoted by the WA government was hypothetical and speculative and his company may have received nothing if another arbitration over the Balmoral South proposal was allowed to go ahead.
The High Court challenge was one of several legal battles waged by Mr Palmer against the WA government over the past 18 months, including an unsuccessful challenge to WA’s hard border, and a defamation action between Mr Palmer and Mr McGowan in the Federal Court.
The defamation action is excepted to be heard before Justice Michael Lee in Sydney in January.
Last month, Justice Lee said he would prefer the witnesses, including Mr McGowan, to testify in person however WA’s ongoing hard border with NSW is expected to complicate the case.
With Heather McNeill