A year after it first launched, the Queensland Resources Council’s (QRC) public awareness campaign against the State Government’s sudden introduction of the highest coal royalty taxes in the world continues to gain momentum.
A new advertisement released today at the QRC’s annual lunch in Brisbane shows in graphic terms how much is at risk from the government’s decision to move Queensland’s investment goal posts.
QRC Chief Executive Ian Macfarlane says the ad focuses on the simple message that when the government hurts Queensland resources, it hurts Queensland’s future.
“For decades, Queensland’s resources sector has been the driving force behind the state’s economic prosperity on the back of quality resources, good management and the development of a global reputation as a safe and reliable place to invest,” Mr Macfarlane said.
“The result has been a multi-billion dollar annual ‘nest egg’ that’s protected Queensland from economic headwinds, including during the pandemic, and made us the envy of other states and countries.
“The latest Economic Contribution report released today shows our sector contributed a record amount of $116.8 billion to the state economy in the last financial year and supported over half a million Queensland jobs.
“This includes billions of dollars spent by mining and energy companies with Queensland businesses throughout our supply chain as well as supporting charities and community groups.”
Mr Macfarlane said the Queensland Government’s decision to impose the world’s highest royalty taxes on the coal industry has placed the state’s ‘nest egg’ at risk.
“Since the royalty tax increase last year, billions of dollars of investment has been cancelled, frozen or is under review and thousands of future jobs have been lost, and that’s just in the first 12 months,” he said.
“The State Government’s short-term thinking for short-term gains is killing the golden goose and doing long term damage to Queensland by deterring investment in new, greenfield projects and drying up that pipeline of future projects.
“The loss of investment confidence threatens new projects across all commodities, including battery minerals and renewable energy projects, so the impact is broader than the coal sector.”
“Under the former tax regime, coal producers would have paid about $14 billion in royalties over this period, so it’s about an extra $6.5 billion impost on the sector in just two years.
“This is from a government that promised no new taxes before the last election.
Mr Macfarlane said Queenslanders have a growing understanding of how important the resources sector is to the economy and community.
“Through this campaign, we want people to understand that unless there’s ongoing investment in new resources projects, the nest egg the resources sector delivers each year to Queenslanders will shrink,” he said.
“Mining is a long-term game, so once investment sentiment moves to other regions, it’s very difficult to get it back.
“We again ask the Queensland Government to reconsider its coal royalty tax increase and to work with the resources sector, instead of against it, for the long-term benefit of all Queenslanders.”
