PERTH (miningweekly.com) – The Queensland Resources Council (QRC) on Monday launched a new campaign against the state government’s royalty rates.
QRC CEO Ian Macfarlane said the resources industry was backing the next phase of the ‘Keep Queensland Competitive’ campaign to show the negative consequences of the royalty tax for new investment and jobs in Queensland’s resources sector.
“Economists warned the new royalty rates would cost Queensland investment and jobs – and they have,” Macfarlane said.
“The royalty tax hikes have already cost Queensland a new A$2-billion investment which would have created more than 2 000 jobs.
“Figures from Australian government Department of Industry, Science and Resources reports show there is a pipeline of new projects worth more than A$100-billion including investments in the minerals needed for renewables and lower-emissions technologies. Those projects could be at risk if Queensland continues with its uncompetitive royalty rates,” said Macfarlane.
The state government last year increased the coal royalty rates to 20% for prices above A$175/t, 30% for prices above A$225/t, and a 40% tier that would apply when prices exceed A$300/t.
“When the investment rules change so drastically and so suddenly as they did when the world’s highest coal royalty was introduced in Queensland last year, that’s a wake-up call for investors in all resources projects who have reason to rethink whether Queensland is the best place to invest,” Macfarlane said
“Without new resources projects, there are no new jobs, which will impact every Queenslander in one way or another.
“At a time when the cost of living is increasing and mortgage rates are on the rise, the best security people can have is a job, which is what the resources sector can provide.
“A stable and competitive royalty system that’s attractive to investors is also more likely to deliver consistent royalty tax returns that allow for long-term investments in hospitals, roads, schools and new energy infrastructure.
“This short-sighted tax grab hurts Queensland in the long run, because it costs us new projects and new jobs. Regional Queenslanders pay an especially high price with the loss of infrastructure, services and the job-creating projects of the future.
“The resources industry is asking the Queensland government to work with us on a better way to secure the state’s resources future.”