Comments from another major resources company again highlight the growing threat to investment and jobs in the sector in Queensland from the state government’s royalty tax hike.
QRC Chief Executive Ian Macfarlane says Peabody Energy has joined the list of major resources companies calling on the Queensland Government to reconsider its unprecedented royalty hike, introduced without any industry consultation earlier this year.
“It is a matter of major concern when a company the size of Peabody, a significant investor and employer in Queensland coal projects, indicates its future investment plans for Queensland are at risk because of what Peabody calls an ‘extreme royalty structure’,” he said.
“The company has confirmed the royalty increase will have a devastating impact on regional communities, where tens of thousands of jobs and new business opportunities will be in jeopardy.”
Mr Macfarlane said the comments by Peabody follow BHP’s recent warning about the impact of the Queensland Government’s royalty tax grab.
“BHP described the near tripling of top end royalties by the Queensland Government as a serious concern and threat to investment and jobs in the state.
It went further, adding BHP will be unable to make significant new investments in Queensland because of the government’s decision to dramatically increase royalty taxes.
Japan, which is such an important trading partner and investor in Queensland, has also called for the royalty increase to be reviewed if its investment is to continue.
How much more damage does the Queensland Government need to see being caused to the resources sector before it takes these warnings seriously?” Mr Macfarlane said.
“The impact of the royalty tax hike goes way beyond just affecting the coal industry – it’s affecting the whole of Queensland’s resources sector, which needs consistency in government policy to attract international investment in what is a very competitive market.
The Queensland Government must review its decision and start listening to companies like Peabody Energy and BHP as they are not the only companies with serious concerns.
The government’s short-sighted decision to impose the world’s highest royalty tax rates on Queensland coal producers will have far-reaching implications for the resources sector and its ability to continue to underpin the Queensland economy.”