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Business group’s icy reception as Canberra joins Qld Labor’s freeze of resources sector

Labor’s rift with the resources sector has expanded with a Western Downs delegation rebuffed in Canberra and told the gas industry was guilty of wartime profiteering.

Mar 09, 2023, updated Mar 09, 2023
Toowoomba Surat Basin Enterprise chief executive Ali Davenport.

Toowoomba Surat Basin Enterprise chief executive Ali Davenport.

It follows a deep freeze in relations in Queensland which has included an investment strike by BHP after a massive hike in coal royalties was imposed on the industry.

But it also extends back to the Adani debacle and the political capital Labor lost in its early support and then rejection of the central Queensland coal mine. Federally, Labor was punished in the 2019 election for its anti-coal stance with big swings recorded in central Queensland.

Business group the Toowoomba-Surat Basin Enterprise and Western Downs mayor Paul McVeigh recently went to Canberra to lobby the Government over its gas price cap policies which had already led to Senex putting a $1 billion gas project on hold. Several other projects in the area had also cancelled or postponed projects.

However, the group was told by Office of the Prime Minister that the gas industry was guilty of wartime profiteering. Regional Development Minister Kristy McBain also said that companies were price gouging, a reference to the huge price gains in gas since Russia invaded Ukraine. One company, Santos, had a 220 per cent profit increase for 2022.

TSBE chief Ali Davenport said the decision by Senex to ice its gas project “speaks volumes of the impact of this intervention”.

She said during Covid when gas prices fell significantly, the industry never once considered stalling projects.

Western Downs mayor Paul McVeigh said that to hear the industry demonised because they were making profits didn’t seem fair and did not consider the fluctuations in prices.

Queensland Resources Council chief executive Ian Macfarlane said the comments from the Government were disgraceful, although Resources Minister Madeline King did give the group a good hearing.

“It’s concerning that Government representatives instead used the meetings to push an anti-resources ideology, demonising the sector to score political points with no regard to the damage being caused to future project investment.”

Regional Development Minister Kristy McBain has been asked for comment.

 

 

 

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