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Strict conditions for potential loan to save Palmer's Queensland Nickel

Sunday, 6 Mar 2016 13:32:54

Queensland Nickel went into voluntary administration in January. (AAP)

The Queensland Government has spelled out a strict set of conditions under which it might help Clive Palmer's ailing Queensland Nickel refinery in Townsville.

FTI Consulting was appointed to run Mr Palmer's Yabulu refinery when it was put into voluntary administration on January 17 after sacking 237 workers.

In a final bid to save the refinery, administrators had asked the State Government to step in as guarantor for a $10 million loan.

The State Government has been considering the risk in guaranteeing the loan.

Queensland Treasurer Curtis Pitt then sent the request to Federal Treasurer Scott Morrison, who rejected the plea.

Mr Pitt said on Sunday he was still considering the loan proposal very cautiously and the Government was demanding full access to the company's books.

"Our independent advisers would have full access to the books to understand clearly the position of the company," he said.

"We would need to ensure that there was going to be new ownership, which would mean Mr Palmer exited the business.

"We would also need to be very clear that any funding provided by the Government — if we were to provide any — would be fully secured against the administrators themselves through the creditors process.

"All of those things have been very clearly signalled to FTI [Consulting] as the administrators representing QN [Queensland Nickel] and of course, we will be continuing to engage with them."

Palmer played games: Pitt

Mr Pitt said the State Government must undertake with this process with "the greatest of meticulous scrutiny because of course every move we make is involving the taxpayers' money".

"In order for Queensland taxpayers to have any faith in the process that we would undertake as a Government, we would need to ensure that any funding would be fully secure and of course, we would need to be dealing with an independent group that weren't playing games — and we saw Mr Palmer play games for some time," he said.

"Sadly, the Townsville people — particularly the employees who have already lost their jobs — have been the victims in that process."

The ABC has contacted FTI Consulting for comment.

The company's collapse would be devastating to the north Queensland economy as it had been Townsville biggest private employer before the redundancies.

The company donated more than $21 million to Mr Palmer's political party in the past two years.

AustraliaPlus


 

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