Martin Ferguson (Batman, Australian Labor Party, Minister for Resources and Energy) Share this | Hansard source

The only thing that saved Queensland in terms of those job losses in the coal sector is the fact that we have attracted $55 billion in new investment into coal seam, methane and LNG construction jobs in Queensland during the same period.

That has saved the bacon of Queensland and also saved the bacon of the Queensland government, because it has one of the highest unemployment rates at the moment of state and territory governments because of those foolish decisions. On the issue of royalties, we are not breaking our agreement. This was touched on in full at pages 16 and 17 of the Argus-Ferguson report and I quote:

… the royalties entities pay on iron ore and coal are to be credited against the MRRT liability of a project—

accepted by government. It goes on to say:

It provides a way to meet the needs of the States and Territories and captures more of the profits at the peak of the resources cycle, in a way royalties alone cannot, for the benefit of all Australians.

That is the objective of the MRRT and the PRRT.

Importantly, it says:

Equally, the MRRT should not be used as a mechanism to enable States and Territories to increase inefficient royalties on MRRT taxable commodities—

iron ore and coal—

Accordingly, the PTG also recommends the [Commonwealth], State and Territory Governments put in place arrangements to ensure that State and Territory Governments do not have an incentive to increase royalties on coal and iron ore. This would limit their negative impacts, while allowing the [Commonwealth’s] taxation regime to maximise the return to the community during the highpoint of the resources cycle, so achieving the balanced outcome described above.

That statement from the Argus-Ferguson report says it all. It was well designed and implemented. There is no walking away from the Argus-Ferguson report by the government. It was fully implemented. Now the government is in discussions with state and territory governments about the interface between royalties and the MRRT, as demanded by the Argus-Ferguson policy transition group. Perhaps it is about time that the Leader of the Opposition read this report rather than neglecting it, just like he neglected the BHP announcements of last August about the real reason BHP was not going on with the Olympic Dam expansion in South Australia. (Time expired)

See this speech in context