The Queensland Resources Council (QRC) has again accused the Queensland government of short sightedness with its record coal royalty grab.
According to the QRC, this week’s Queensland budget revealed the government would collect a record $15.3 billion from coal royalties – including $5.7 billion from new royalty taxes.
QRC chief executive Ian Macfarlane said the resources sector continues to make an enormous contribution to the Queensland economy through royalties and taxes as well as employment and business opportunities.
However, he added that there needed to be a balance or the state would lose out in the long run.
“A $2 billion investment in Central Queensland that would have created more than 2000 jobs has been cancelled and a number of companies have indicated they are reconsidering their investment plans,” he stated.
Importance of confidence for investors
The former Federal Resources Minister said there needed to be a balance between what the Queensland Government takes from the resources sector and what it provides in support to provide confidence for investors to keep providing the capital required to get large-scale, multi-decade projects off the ground.
“The reason Queenslanders are benefiting today from the resources sector is because of investment decisions made years, if not decades, ago by resources companies which saw Queensland as a safe and secure place in which to invest.
“That long-held perception of Queensland has now changed, for the worse.
“A pipeline of more than $100 billion in a range of projects, including the minerals needed for lower emissions energy and technologies, could also be at risk because of the uncertainty that now exists for companies weighing up whether to invest in Queensland.”
Maintaining a pipeline of projects
Mr Macfarlane said those involved in mining and petroleum in the state were proud of the significant contribution the resources sector makes to help provide the services and support Queenslanders need.
“Over $18 billion in royalty taxes paid by the Queensland resources sector has enabled the State Government to deliver a budget that provides cost-of-living relief to Queenslanders.
“But if the Government wants the resources sector to be able continue to provide that support into the future, it needs policies that encourage investment to maintain a stable pipeline of projects in the years and decades to come.”
Concerns over investor perception
According to a QRC survey, the Queensland resources sector generated $94.6 billion of economic activity in the 2021/22 financial year and supported the jobs of 450 thousand Queenslanders. It found that resource companies had also spent a record $28 billion supporting local businesses across the state.
“It was very concerning to see Queensland drop seven places in the Fraser Institute’s latest international survey of mining companies in terms of investor perception of policy settings in this state,” Mr Macfarlane said.
“Queensland is only just ahead of Brazil and Victoria, and 16 places behind Tasmania which is an indication of the concern held by the international investment community over the State Government’s decision to change the royalty policy without proper consultation.”
Resource community funding
In its budget response, the Queensland government has promised that five Queensland resource communities will be eligible to share in a $120 million round three of Resources Community Infrastructure Fund.
Notably, the government said the fund has a special focus on the coal producing regions of Isaac, Central Highlands, Banana, Western Downs and the Whitsunday local government areas.
According to the Government, RCIF assists eligible organisations with the construction of community infrastructure including upgrades, extensions, or replacement of existing buildings.
“RCIF is an acknowledgement of the importance of our resource communities and the work they carry out for Queensland,” Deputy Premier, Steven Miles, said.
“Our coal producing communities have been the backbone of our economy for generations, and it is only right that we do all we can to ensure they are as liveable as possible.”
Treasurer and Minister for Trade and Investment, Cameron Dick, said the fund was established to reward the coal mining communities of Queensland.
“It is these hard working coal mining communities that deliver for the people of Queensland.
“The $120 million RCIF round 3 will deliver infrastructure to meet each community’s needs, maximise its potential and enhance community wellbeing.
“It’s imperative that we put back into those coal producing communities that have played such an important role in Queensland’s economic strength for so long.
“They deserve their fair share, and through $120 million fully funded by the Palaszczuk Government, the lives of those communities will be further enhanced.”
Exploration support funding
The new budget also included $50 million to be allocated to exploration initiatives for the state’s resources sector.
This funding includes a new $21 million Frontier Gas Exploration program targeting the identification of new gas reserves in the Bowen and Galilee Basins.
The Government will continue to implement the Queensland Resources Industry Development Plan, a 30-year vision to grow and transform the sector.
Premier Annastacia Palaszczuk admitted the resources sector is one of the key drivers of Queensland’s economy supporting about 75,000 good jobs mainly in regional areas.
Resources Minister, Scott Stewart, said exploration is the lifeblood of new resources projects and jobs.
“Our new $21 million Frontier Gas Exploration program also recognises the important role of gas for firming renewable energy generation in Queensland as we work to achieve 70 per cent renewable energy by 2032 and 80 per cent by 2035 under the Queensland Energy and Jobs Plan.
“Queensland continues to do the heavy lifting when it comes to gas and we continue to support the sector.”
