NSW says no and so should Queensland

The Australian Institute for Progress says that the Queensland government is a soft touch if it props up Star Entertainment, which is suffering financial problems as a result of run-ins with regulators, poor trading and cost overruns on Queen’s Wharf.

Executive Director Graham Young said Queensland has taxpayers and Star has shareholders and taxpayers should never take the pain that is due to shareholders.

“If Star’s shareholders and bankers are not prepared to stump up the money because they obviously think it is too high risk, then the state government should not be considering putting taxpayer’s money in.

“Particularly in a cost-of-living crisis when taxpayers themselves are struggling financially.”

Mr Young said that it appeared the state was considering deferring payment of payroll and gambling taxes, but in the worst case where there is a liquidation, some or all of those fees could be lost as the state would become an unsecured creditor.

“There is also a fallacy that if Star fails the development will fail also. That is nonsense. A building of that quality with a gambling licence will represent value to a whole range of potential buyers, just not at what it cost Star.

“In New South Wales an inquiry by Adam Bell SC has found Star is unsuitable to hold its Sydney Casino licence.

“The development will never be lost, but with any luck it may jag a more reputable operator.”

Mr Young said it would be unfortunate for Star’s employees if the operation had to be closed for a time, but this has to be balanced against the financial pain being incurred by taxpayers.

“The money to featherbed Star will have to come from somewhere. No doubt the treasurer will claim that coal royalties will fund it, but the royalty stream is decreasing with coal prices, and has already been spent a few times over.

“So it will come from increased debt, which is the same thing as saying decreased spending on essential services like health, ambulances, schools and police.

“No doubt the hospitality workers’ union, the United Workers Union, which has plans to campaign for Labor in the state election, is telling the premier to intervene.

“I wonder how much pandering to unions like them and the CFMEU has contributed to the cost overruns on the casino.

“Independent assessments say the CFMEU “tax” is at least 30%.

“The Premier needs to govern for all Queenslanders, not special interests like related unions and favoured corporates.”

For further information contact Graham Young 0411 104 801 graham.young@aip.asn.au