Stable royalties required - don’t risk regional recovery from COVID-19
8 June 2020
The Queensland Resources Council has repeated its call for the Palaszczuk Government to match the LNP Opposition commitment to a 10-year freeze on all resource royalties.
QRC Chief Executive Ian Macfarlane said the industry noted the Palaszczuk Government’s commitment today to a five-year freeze for new petroleum royalty arrangements, following its earlier commitment to freeze the rate and threshold for coal and metal royalties for three years.
“The Government has recognised that stable royalties provide greater investment and employment certainty for the resources industry. The LNP promised 12 months ago, if elected, it would stabilise royalties for 10 years,” Mr Macfarlane said.
“The resources sector has been paying more than $5 billion in royalties to the Queensland Government to reinvest in services and infrastructure for all Queenslanders.
“The role of the resources sector is even more important to Queensland with COVID-19’s impact across the State’s economy. The resources sector employs one in seven jobs in Queensland and it contributes more than $220 million to the State’s economy each week.
“The last royalty increase, under the Newman Government in 2012, compounded the regional impact of a global downturn in commodity prices and led to a significant reduction in resource investment and jobs.
“QRC welcomes the use of actual sales rather than an index for calculating gas royalties and the lower rates the model will offer for domestic production.”
Mr Macfarlane said QRC would have preferred the Government to continue dialogue with the gas industry to better inform the development of the new petroleum royalty arrangements.
“QRC will continue to work with its gas members to ensure the Government’s new royalty arrangements are workable and do not detract from their planned investment and employment, particularly in the COVID-19 recovery,” he said.
Media contact: Anthony Donaghy 0412 450 360