Legislate to secure resource role in COVID-19 recovery

The Queensland Resources Council will tell a state parliamentary committee (Economics and Governance Committee) today that a stable royalty regime sends a very strong message that Queensland is open for business to potential investors, and gives companies the confidence to invest, plan and create new jobs.

QRC chief executive Ian Macfarlane said keeping royalty rates on coal, metals and gas at current levels for the next 10 years would create a “jobs boom across the state”.

Queensland’s resource companies, which already pay the highest resource royalties in Australia, contribute a staggering $70 billion each year to the state’s economy.

Mr Macfarlane said the best way for the State Government to create new jobs and stimulate the economy in response to the COVID-19 downturn was to remove barriers to investment in the resources sector.

“The resources industry has identified Queensland’s very high royalty rates as a major impediment to investors, at a time when we need new jobs and investment more than ever before,” he said.

“Keeping royalty rates at current levels for the next 10 years will ensure Queensland is more competitive and attractive to investors, and has the potential to generate billions more royalty dollars and thousands of long-term jobs for the state.”

Mr Macfarlane said the chair of the Queensland Petroleum Royalty Review, Jay Weatherill, had recently expressed the view the resources industry would benefit from an extended period of royalty certainty, due to the long-term and costly nature of mining and energy projects.

“While the QRC has previously welcomed the State Government’s commitment to three years of royalty stability for coal and metals, and five years for gas, today we’re asking for a much longer commitment to give investors the confidence to bring their dollars and jobs and opportunities to Queensland.

“We’re asking for legislation to be put in place to allow royalties to remain at current levels for the next 10 years, and for a more streamlined project assessment and approval process.”

Media contact: Anthony Donaghy 0412 450 360