$20 million for a Queensland renewable energy fund. That’s really not good enough.

I just read Hansard which had the Borg saying “My government will pay a gross feed in tariff for all suppliers of solar energy systems. What this means is that everyone who contributes power to the grid under this policy will be paid for every kilowatt hour they generate, unlike the government’s policy under which no Queensland home based system would ever hope to generate enough electricity to be able to feed back into the system under its net tariff proposition.
My government would take first mover status and put Queensland at the forefront of the solar industry in Australia by providing certainty to the market and to the industry.”

Finally a politician who actually understands solar power and feed in tariffs.

This government has based its whole budget funding strategy on increasing levels of mining for coal despite the fact that it publicly states that the world is heading for a calamity because of the burning of fossil fuels. It is obvious that it doesn’t believe its own rhetoric.

This idea that there is a 2 tiered tax regime that will mitigate a fall in royalty payments if the price of coal falls is so much wishful thinking. If the price falls there will be an almighty hole in the budget for which the government has made ongoing commitments. Politically it will find itself unable to cut its new spending programs and so will adjust the royalty rates to preserve its revenue base.

What disappoints me the most about this Labor budget is the ongoing addiction to fossil fuels. It appears that climate change and peak oil are just vague concepts when it comes to the budget. All I can see are token ‘greenwash’ announcements but nothing serious.

I’d be keen to see if the Borg is serious about his earlier statements of building Queensland as a renewable energy capital, if he is then we may have a real choice at the next election.

It would be unwise to underestimate this appeal to regional sentiment (I know it’s the Nats’ perennial tactic but…). In the tissues on the weekend I learned that Townsville’s rental accommodation occupancy rates are under 2% - I think that’s even tighter than Brisbane, and it represents a big affordability issue in areas that aren’t accustomed to dealing with this stuff. The social housing and affordability measures have to be seen to help outside the SE or the Borg may just jump on it successfully. I guess Fraser’s move to set a statewide cut-off for the stamp duties will disproportionately advantage ppl in most regional centres where houses tend to be cheaper than in Brisbane, but may not work that well in mining centres like MV/Weipa where prices are very high. We’ll see.

Anyway… growing pains are being felt Statewide!

117 Rights of residents in States
A subject of the Queen, resident in any State, shall not be subject
in any other State to any disability or discrimination which would
not be equally applicable to him if he were a subject of the Queen
resident in such other State.

Coal is currently above $300 per tonne. In the budget allowance was made for the increased royalty from the current 7% to 10% for coal selling at over $100 per tonne. The fairness in the two tier structure that Des can’t bring himself to acknowledge is that should coal drop below $100 per tonne in the future then the royalty drops back to the 7% level. Not quite the same as the ‘Milch cow’ Des would have us believed is being milked!

This is the explanation from the budget papers:

Queensland has changed the calculations for royalty
payments for mineral and petroleum resources to ensure
the people of Queensland receive a fairer share of the
value of the State’s resources. A two-tier coal royalty
system has been introduced. The rate of royalty on
bauxite consumed within Queensland has also been
increased, as has the rate of royalty payable for many
industrial type minerals such as clay and limestone.
The increased royalties paid will mean the people of
Queensland, as owner of these resources, will benefit
through improved government services and infrastructure
including several infrastructure initiatives in the coal
mining regions.

Queensland has changed the calculations for royalty
payments for mineral and petroleum resources to ensure
the people of Queensland receive a fairer share of the
value of the State’s resources. A two-tier coal royalty
system has been introduced. The rate of royalty on
bauxite consumed within Queensland has also been
increased, as has the rate of royalty payable for many
industrial type minerals such as clay and limestone.
The increased royalties paid will mean the people of
Queensland, as owner of these resources, will benefit
through improved government services and infrastructure
including several infrastructure initiatives in the coal
mining regions.

http://www.energy.qld.gov.au/zone_files/General_PDFs/budget_highlights_2008.pdf

Des any chance of naming even one miner prepared to pull out of the boom because of a 3% tax increase? Get a grip on yourself Des the following comments make a mug out of you.

[It may even force multinationals to scrap new mines here and seek greener pastures elsewhere.
The government will reap an additional $585 million a year from the new royalty payments.

It took the miners by surprise.
Now it appears bauxite miners will face similar super royalties
In all, coal royalties will bring in $3 billion - outstripping revenues from payroll tax and stamp duty.

This is an amazing impost on an industry which in the last four years has contributed $7 billion to port and rail infrastructure.
Coal miners have become Anna Bligh’s milch cow.]

http://blogs.news.com.au/couriermail/deshoughton/index.php/couriermail/comments/you_pay_for_labors_sins/