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Loss of Queensland Nickel jobs like 'a Shakespearean tragedy'

Friday, 11 Mar 2016 06:07:15 | Courtney Wilson

Clive Palmer's Queensland Nickel Sales took over the troubled Yabulu refinery on Monday. (AAP)

Townsville's Mayor has labelled the loss of the remaining 550 jobs at Queensland Nickel as being "worse than a Shakespearean tragedy".

Key points:

  • 550 workers at Clive Palmer's nickel refinery, near Townsville, will lose their jobs at 5:00pm
  • Queensland Nickel owes more than 1,500 creditors a total of $100 million
  • Townsville Mayor Jenny Hill calls on Federal Government to extend lifeline

Queensland Nickel Sales, owned by Clive Palmer, took over as manager of the troubled refinery, near Townsville, on Monday, after former manager Queensland Nickel, another of Mr Palmer's businesses, went into voluntary administration.

But, a hitch in that plan emerged, when it was revealed that the new management company does not have the relevant State Government approved licenses to run the plant.

Workers have been told their employment will be terminated at 5:00pm today, unless the new management company can secure the required environmental licenses from the State Government.

Townsville Mayor Jenny Hill said it was a tragedy for the workers, their families and the whole community.

"These are real people we're dealing with here whose lives and livelihoods are heavily affected by the actions and decisions made by a handful of people," she said.

"It's worse than a Shakespearean tragedy."

I've always taken Clive Palmer on his word, but after the events of the last week, God only knows what's going to happen.

Jenny Hill, Townsville Mayor

Cr Hill said she had been assured the remaining Queensland Nickel workers would be paid up until their final shift, but after that she too was uncertain.

"I've always taken Clive Palmer on his word, but after the events of the last week, God only knows what's going to happen," she said.

Queensland Nickel fell into voluntary administration in January, when 237 workers were sacked.

They're yet to be paid their entitlements.

Administrators FTI Consulting said the refinery owed more than 1,500 creditors a total of $100 million.

The ABC can reveal that of those creditors, more than 300 are businesses.

It includes government departments and corporations such as Stanwell Energy and Powerlink, the Australian Tax Office, and the Queensland State Office of Revenue.

Resource companies, electrical suppliers, and crane-hire and shipping firms are among the other businesses yet to be paid for their services.

Queensland Nickel also owes the 237 workers sacked earlier this year more than $30 million in entitlements.

A second creditors meeting for the Townsville refinery will be held in April.

'Just as bad' as SA carmakers' collapse

Cr Hill has called on the Federal Government to extend a lifeline, comparing the situation to that of the car manufacturing industry collapsing in South Australia.

"I've had people say to me it's as bad as what's been happening in Adelaide," she said.

"I would say to you that we are in the same position, and I really now want the Government to move in and support us with a similar package as they've done in South Australia.

"If you want to grow north Queensland, if you want to grow northern Australia, you need to put your money where your mouth is."

The Federal Government has so far pledged more than $2 million towards a support package for sacked workers.

But Opposition Leader Bill Shorten said north Queensland needed more.

He said Prime Minister Malcolm Turnbull should allow sacked workers to access the Federal Government's entitlement scheme immediately, without having to wait for Queensland Nickel to be liquidated.

He has also pushed for the Government to boost jobs growth by backing local construction projects.

More on this story:

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