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Category: Government and Politics / Corporate Governance / Business, Economics and Finance / Mining Industry / Clive Palmer / Federal Government

Federal MP in tears over fate of Queensland Nickel workers

Friday, 15 Apr 2016 08:32:20

Local federal MP Ewen Jones says no Queensland Nickel worker wants to take taxpayer money. (ABC News)

A federal Queensland MP was brought to tears while describing how the Government will pursue Clive Palmer for money owed to former nickel refinery workers.

Key points:

  • Workers will get majority of their entitlements under Commonwealth scheme
  • The Federal Government will apply to become a special purpose liquidator
  • The $73.9 million bill will be largest under the scheme for a corporate collapse

Employment Minister Michaelia Cash is bringing forward payments to the workers under the Government's Fair Entitlements Guarantee (FEG) scheme, meaning taxpayers will foot the bill.

Senator Cash said releasing funds from the FEG scheme would make the Commonwealth one of Queensland Nickel's largest creditors.

It will then pursue Mr Palmer for the funds through a special liquidator.

MP for the Townsville-based seat of Herbert, Ewen Jones, said none of the former Queensland Nickel workers wanted to take taxpayers' money.

"The big announcement here that I see in Townsville, that we will pursue the management of Queensland Nickel to ensure that we are a creditor of Queensland Nickel," he said.

"We will pursue that money that taxpayers are owed. It's the measures we want to get through to the Queensland Nickel employees.

"Because this is really important for Townsville."

Mr Jones said the Government would back the liquidators.

"I think it is up to the liquidators to ensure that they do everything they can to step in here and chase this money," he said.

"Because there's nothing surer than there are assets floating around that everyone can see that can be cashed in."

Earlier this week administrators FTI Consulting recommended Queensland Nickel be liquidated, as it owes nearly $200 million, including about $73 million to about 800 sacked workers.

Demise of Queensland Nickel 'could have been avoided'

Senator Cash said while the Government would assist, it was not responsible for the demise of the business.

"Unfortunately it could have all been avoided," she said. "A viable enterprise has been run into the ground by its managers and former owners.

"We should all be very clear where responsibility lies for this mess. It lies fairly and squarely with Clive Palmer.

What next for Queensland Nickel?


The administrators have recommended liquidation, but what does that mean for workers, creditors and Clive Palmer?

"It looks at first glance that the majority of employees should receive the majority of their entitlements.

"This is to provide financial relief to employees."

Senator Cash said the majority of employees should receive the majority of their entitlements.

"They have been the victim of bad management by Clive Palmer," she said.

"The Government will make application to the court to become a special purpose liquidator because of the unique circumstances of this case.

"We do know that there are assets out there, we need to pursue those assets."

The FEG was set up under the Howard government to ensure employees received their unpaid entitlements, and normally kicks in once a company is in liquidation.

The $73.9 million bill will be the largest payout under FEG for a corporate collapse.

Meanwhile, Townsville City Council is suing the two companies owned by Mr Palmer that run the nickel refinery, over unpaid council rates.

Documents lodged in the District Court in Townsville show the council is pursuing QNI Metals and QNI Resources for almost $700,000.

'Pathetic crocodile tears'

Labor's employment spokesman, Brendan O'Connor, said for the past three months he had been asking the Government to give Queensland Nickel workers access to the FEG.

"Bill Shorten wrote to the Prime Minister in January, wrote again to him in March calling upon him to allow these workers access to the fair entitlements guarantee," Mr O'Connor said.

"We ultimately want to see the Government pursue that company and indeed anyone who is liable for the liquidation of that company if that's to happen.

"I have to say it was quite pathetic to see the member for Herbert, Ewan Jones, cry crocodile tears today.

"Ewan Jones, along with Malcolm Turnbull and Senator Cash, voted to cut the fair entitlements guarantee down to 16 weeks."

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