QUEENSLAND Resources Council has received assurances from the Queensland Government that increases of the rate of coal royalties, which are now at record levels, were not part of the preparations for the June 11 State Budget.

QRC chief executive Ian Macfarlane said the industry welcomed Treasurer Jackie Trad’s comments that the Labor Government was "proud to be a resource State here in Queensland," in response to a question from Katter's Australian Party (KAP) Member for Hinchinbrook Nick Dametto on coal royalties. 

“I understand the Treasurer did not want to disclose Budget details in Parliament, the reality is that the QRC has already sought and received assurances from the Palaszczuk Government that there is no plans to increase royalties,” Mr Macfarlane said.

"Queensland coal set an export record last year – every extra tonne we export delivers more dollars for the Treasurer’s budget and predictions are that the Government will receive an extra $1 billion in royalty taxes this year."

Mr Macfarlane said the State Government was on track to receive a record $5.2 billion in royalty taxes from the 316,000 men and women who work in the resources sector. Coal royalties are at record levels with $4.2 billion expected this financial year, compared to $1.6 billion under the last Budget of the previous Government.

“The Treasurer knows that Queenslanders are already seeing a strong return on coal exports and her answer in Parliament also acknowledged the importance of royalty stability to attract and retain investors in developing resources,” Mr Macfarlane said.

“With the Treasurer’s attack in Parliament today of the previous Government’s decision to increase royalties, it would be totally hypocritical for the Palaszczuk Government to consider an increase.

“It’s important in all Budgets not to kill the goose that lays the golden egg,” Mr Macfarlane said.

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THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell today welcomed Labor’s commitment to establish a free legal advice service for small businesses and farmers in dispute with financial service providers.

“Through this initiative, small businesses and farmers would get free legal advice as soon as a dispute arises,” Ms Carnell said. “This service would continue to provide legal advice if the dispute is escalated to the Australian Financial Complaints Authority (AFCA) or is taken to court.

“Small businesses and farmers would also be able to call on this advice to prepare for past cases to be considered by AFCA under its extended remit – to consider eligible financial complaints from small businesses dating back to January 1, 2008.

“We support measures that ensure small businesses have access to justice, particularly in cases where there's an imbalance of bargaining power.

“The court system is expensive and is extremely time-consuming; money and time are two key things that small business owners don’t have," Ms Carnell said.

“Phase I of our Access to Justice Inquiry found three out of five small business owners sought legal advice from a lawyer. Even with legal advice, small businesses find the cost of any action to achieve justice outweighs the potential gain.

“The proposed initiative would have the ability to actually fund cases, which is a real step to achieving justice for small businesses and farmers with valid cases against their financial service providers.”

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CONSUMERS will once again be left vulnerable to raids on their super accounts by financial advisers if a government proposal to allow grandfathered conflicted remuneration to continue goes ahead, according to Industry Super Australia.

Industry Super Australia has strongly opposed the move in its submission to the Exposure Draft Treasury Laws Amendment (Ending Grandfathered Conflicted Remuneration) Regulations 2019.

Despite a clear recommendation by the Royal Commission that grandfathering arrangements should cease, the government’s draft regulations effectively give an exemption for financial institutions to continue provisions for conflicted remuneration by allowing a rebate or monetary benefit scheme to be established.

Industry Super Australia chief executive Bernie Dean slammed the proposal and called on the provisions for conflicted remuneration to be repealed as soon as possible – "in line with Commissioner Hayne’s recommendation".

“Let’s not forget that grandfathered commissions remove money from consumers' accounts without their express consent. This is akin to stealing money,” Mr Dean said.

“This is money that would otherwise have been maintained, in a consumer’s account, and instead was siphoned off to pay financial advisers for nothing.

“To claim administrative inconvenience as an excuse to try and water down what should be a blanket ban on grandfathered commissions, is astounding given the disgraceful conduct that was exposed during the Royal Commission.”

Mr Dean said this was not the first time the retail fund sector had tried to persuade the government – previously through the FoFA legislation – to put in place a backdoor arrangement that would have seen grandfathered commissions allowed into perpetuity.

“While some parts of the super sector will fight tooth and nail to keep grandfathered conflicted remuneration provisions – at the expense of consumers – our position is clear," Mr Dean said.

“We do not support a watering down of the blanket prohibition on grandfathered commissions. Any attempt to provide exemptions for conflicted remuneration will only erode consumer protections and leave consumers worse off.”

Industry Super Australia’s full submission can be found at https://www.industrysuper.com/media/ending-grandfathered-conflicted-remuneration/

THE Queensland Resources Council has urged the Palaszczuk Government to focus on moving the multi-billion-dollar pipeline of resource sector projects from planning to purpose.

QRC chief executive Ian Macfarlane said while he welcomed the Government’s advertisement promoting the fact $20 billion worth of resource projects had been approved with the creation of 7000 jobs over the last four years, there was in excess of $60 billion of resource project investment in the pipeline.

“We are competing with the world for investment in the development of our resources -— coal, gas and metals. Our resources are first class. We have dedicated and skilled workers. We need the confidence that stable policy settings from government gives to secure the new projects and new jobs for Queensland,” he said.

“It’s great to celebrate the investment secured over the last four years, but no one won a race running backwards. We are in a race — commodity prices and demand is strong.

“Abrupt and unpredictable government policy and decision-making from government is our biggest threat.

“With Queensland’s unemployment rate now back over 6%, there is no better time to give the resources sector the renewed confidence to invest, employ and export for all Queenslanders.”

Mr Macfarlane said since the 2017 State election, full-time equivalent jobs in the Queensland resources sector had grown at the rate of one every 57 minutes.

www.qrc.org.au

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