THE MINING and gas industry of Queensland today expressed its disappointment at Premier Annastacia Palaszczuk’s refusal to guarantee it will not increase royalty rates on coal, metals and gas over the next four years if Labor is re-elected to govern Queensland.

Queensland Resources Council chief executive Ian Macfarlane said while the QRC had welcomed Labor’s pledge not to increase taxes, fees and charges, the industry was very uneasy about the failure of the Premier to commit to not raising royalties in the next term of government if elected.

In contrast, the LNP has provided a guarantee for a 10-year hold at current levels on royalty rates on these commodities.

Mr Macfarlane said Queensland’s resources companies already pay Australia’s highest royalty rates and contributed $82.6 billion to the Queensland economy in the last financial year, an increase of $5 billion on the year before.

Labor has previously committed to a three-year freeze for coal and metals, and a five-year freeze for gas, but the QRC has repeatedly asked the Labor Government to extend this to make the Queensland resources industry more competitive globally.

“The amount of time it takes to approve new projects in Queensland - Adani’s Carmichael Project took nine years and New Hope’s New Acland mine still isn’t approved after 14 years – means a longer royalty timeframe is essential for Queensland companies to attract new investors,” Mr Macfarlane said.

“Existing resources companies also need royalty stability to keep their operations competitive and maintain the jobs of the 420,000-plus men and women who rely on the resources sector to support their families and businesses.”

Mr Macfarlane said the QRC had asked the Palaszczuk Government to offer the same commitment to resources provided by the LNP to stimulate a resources-led economic recovery for Queensland.

“It’s just bad economic policy to tax a wealth-creating industry out of existence, especially an industry like resources that has demonstrated its value and resilience to Queensland during COVID,” he said.

“Resources has kept the Queensland economy financially stable and continues to support the jobs of hundreds of thousands of people in spite of the enormous and costly challenge of maintaining our operations during this pandemic.”

Mr Macfarlane said Labor’s refusal to commit to keeping royalty rates at current levels until at least June 2025 shows a short-sighted approach to growing the state economy, and a lack of understanding about how to stimulate growth and jobs.

“This doesn’t bode well for the next four years in the event of a Palaszczuk Government because resources is one of the key industries right now that can help Queensland produce, work and earn its way out of COVID,” he said.

“It’s now up to voters to decide on Saturday which candidates from which parties provide the most certainty and support for jobs in the resources sector.

“This is particularly important for voters in regional areas, who understand the value of the resources industry to jobs and the economy.”

www.qrc.org.au

ends

THE Queensland Resources Council has welcomed today’s commitment by the LNP that if elected it would work closely with the resources sector to get Queensland jobs and the economy back on track post-COVID.

As the peak body for Queensland’s coal, metals and gas explorers, producers and suppliers, the QRC has spent months seeking comprehensive commitments from both major parties and key crossbenchers in the lead-up to the state election this Saturday.

QRC chief executive Ian Macfarlane said the LNP had been very clear about its support for the resources sector during its election campaign and had acknowledged the key role resources has played during COVID to maintain production levels and keep tens of thousands of employees working and earning.

“New economic contribution data shows the mining, gas and energy sector supports one in five jobs across Queensland and has been a bedrock of financial support and stability for the state economy during COVID-19,” Mr Macfarlane said.

The QRC has welcomed the LNP’s commitment to:

• open the Galilee Basin to develop $50 billion worth of projects;
• a new Queensland Infrastructure Fund to collect and invest royalties from the Galilee Basin in new state infrastructure;
• maintain current royalty rates for coal, metals and gas for 10 years;
• grant approvals for New Hope’s New Acland Stage 3 project;
• appoint a Queensland Resources Industry Commissioner to promote the state to international investors;
• implement an industry development plan to support the sector’s future growth;
• encourage exploration to uncover new discoveries for coal, metals and gas;
• commit to a 12-week consultation period on regulatory changes that may impact on the sector;
• streamline assessment and approval processes for new and expanded projects;
• promote the development of the North West Minerals Province, particularly for critical minerals to support the growth of advanced manufacturing, battery storage and renewable energy; and
• progress the CopperString project in the state’s North West in partnership with the Federal Government.

Mr Macfarlane also welcomed the LNP’s commitment to not form a minority government or enter a power-sharing agreement with the Greens, whose policies would jeopardise the sector’s viability and push those Queenslanders who work in or because of the resources industry out of work. 

“The Greens believe it’s their job to cost hard-working Queenslanders theirs,” Mr Macfarlane said.

“The Greens have promised to increase royalty taxes imposed on the industry by five times, making the industry and those jobs unviable.”

Mr Macfarlane said the Katter Australia Party and its leader Robbie Katter had also been a strong advocate for the resources sector and had endorsed key elements of the QRC’s election agenda including the 10-year royalty freeze, streamlined approval and assessment processes and an industry development plan.

www.qrc.org.au

ends

THE Financial Services Council (FSC) has launched a research report by Rice Warner which offers some radical ideas for restructuring the model for financial advice which will start a policy debate on how to make advice more affordable and accessible.

Rice Warner proposes a future financial advice model which includes:

• All advice to be one of two categories – strategic advice and financial product advice;
• New definitions of financial advice – general information; and personal advice separated into simple personal advice, complex personal advice, and specialised advice;
• New principles to refocus the system – simplification, affordability, accessibility, consistency, and quality of advice;
• Less documentation – for example, allowing a Fact Find and a Record of Advice for the provision of Simple Personal Advice;
• Realistic and less costly levels of compliance; and
• Tax deductibility for financial advice.

FSC CEO Sally Loane said, “Quality financial advice is needed now more than ever as the economic impacts of the coronavirus pandemic are felt by individuals right across the nation. The Rice Warner Future of Advice report starts an important policy debate on how we can re-build a simpler and more affordable advice industry.

“Rice Warner’s research examines both the need for advice, and the value of advice. It shows evident benefits of financial advice to the health and wellbeing of individual consumers, as well broader economic benefits such as reduced long-term expenditure on the age pension,” Ms Loane said.

The FSC will consider Rice Warner’s research as well as engaging extensively with stakeholders, including Australia’s financial advisers, ahead of launching a policy document or Green Paper on Financial Advice next year, a critical step in policy development.

“The aim is to build a new model for financial advice which not only makes professional quality advice more affordable and accessible for consumers, but also removes the mass of costly compliance and regulatory burden on the sector," Ms Loane said.

“With advisers leaving the industry in record levels –  Rice Warner reports 15 percent last year and an anticipated fall of a further 36 percent over the next five years – we need to act now to change the system.”

A full copy of the report can be downloaded here.

About the Financial Services Council

The Financial Services Council (FSC) has more than 100 members representing Australia's retail and wholesale funds management businesses, superannuation funds, life insurers, financial advisory networks and licensed trustee companies. The industry is responsible for investing almost $3 trillion on behalf of more than 15.6 million Australians. The pool of funds under management is larger than Australia’s GDP and the capitalisation of the Australian Securities Exchange and is the fourth largest pool of managed funds in the world.

ends

A NEW REPORT into Australia’s mandatory data retention regime recommends the Federal Government implement a number of changes aimed to increasing transparency.

Andrew Hastie, chair of the Parliament’s Intelligence and Security Committee, said the report's 22 recommendations increase transparency around the use of the mandatory data retention and increase the threshold for when data can be accessed. In addition, the committee make recommendations that reduce the currently very broad access to telecommunications data under the Telecommunications Act.

"Our recommendations are aimed at improving mandatory data retention in a way that does not have a great effect on law enforcement and ASIO’s ability to do their very important work," Mr Hastie said.

"Importantly, the committee has not recommended any change to the existing two year period of data retention."

The report’s 22 recommendations include:

• access to data kept under the mandatory data retention regime will only be available under specific circumstances;
• the Department of Home Affairs develop guidelines for data collection including an ability for enforcement agencies and Home Affairs to produce reports to oversight agencies or Parliament when requested;
• the repeal of section 280(1)(b) of the Telecommunications Act which allows for access where ‘disclosure or use is required or authorised by or under law.’ It is the broad language in this subsection that has allowed the access that concerned the committee.

Mr Hastie said the review, conducted in accordance with Section 187N of the Telecommunications (Interception and Access) Act 1979, is the seventh full inquiry the Intelligence and Security Committee has completed in 2020.

"Despite the challenges of 2020 I am pleased with the high volume of work completed by the committee," Mr Hastie said.

"As the security environment continues to change, the scope and the role of the committee has expanded, as has the workload. I look forward in particular to the publication of the Richardson review, which will shape the framework of both the Australian intelligence community and its oversight bodies, including this committee."

The full report can be read or downloaded from the committee’s website.

ends