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Only parliament should make this decision
The United Workers Union, which according to the Electoral Commission of Queensland Electronic Disclosure register, has contributed $708,376.52 to the ALP over this electoral cycle, is pressuring the Steven Miles Labor government to bailout Star Entertainment to “prioritise the jobs of 8000 workers”, only 3,000 of which are in Queensland. The amount of the bailout is unquantified but is likely to be in the hundreds of millions of dollars, with the latest financials for Star showing taxes and charges of $183 m in a year. The United Workers Union represents the workers at Queen’s Wharf. Any bailout would represent an unacceptable conflict of interest for the government if it is to be handled by the premier and cabinet. - The premier, and a number of his ministers and backbenchers are members of the United Workers Union. According to the “Thirty-seventh report on the Register of Members’ Interests” these are Nikki Boyd, Don Brown, Jonty Bush, Craig Crawford, Mick de Brenni, Di Farmer, Aaron Harper, Ali King, Melissa McMahon, Barry O’Rourke, Curtis Pitt, Kim Richards, Peter Russo, Tom Smith.
- The premier’s PhD thesis was supported by the Liquor, Hospitality and Miscellaneous Workers Union, one of the precursor unions to the UWU. It was about how to enlist more union members.
- Gary Bullock, the National President of United Voice, is reputed to have done the deal which made Steven Miles the premier, rather than either Shannon Fentiman or Cameron Dick.
- The UWU is the fourth largest donor to the ALP over the election period.
None of the UWU members should be party to any negotiations, and on the basis of the size of the donation the government needs to be very transparent about any decisions it makes. Voters have every reason to be cynical about the proposed bailout. - ASIC statistics show that the number of companies entering administration in Queensland has more than doubled since 2021-22 from 952 to 2,036 in 2023-24. In 2021-22 172 accommodation and food businesses went into administration, and by 2023-24 this had grown to 393. In the first two months of this financial year 67 more accommodation and food businesses have gone into administration. Why is Star worthy of a bailout, and 4 Brothers Brewing, Barolos Italiano, CJ’s Fortitude Valley, and the 64 other, mostly non-unionised, businesses on the list at the end of this release aren’t?
- Queen’s Wharf is itself the catalyst for the destruction of other entertainment businesses in Brisbane. How many other businesses will shut because of Queens’ Wharf, and why don’t they deserve government money.
- In the event that Star were itself to go into liquidation or administration, the government would lose its money. On the basis of Star’s 22/23 financials this would be $183 million for 3,000 jobs or $61,000 each, and at the end of it the workers would see none of it and might well be in the same position they are today. The beneficiaries would be the secured creditors – the banks. This would be a bad deal.
- Government policies have undoubtedly led to this position. The hike in building costs is partly due to union featherbedding in the industry which raises prices at least 30% over where they should be. And the RBA governor recently specifically mentioned Queensland government spending as an inflation threat. While there is a threat of inflation interest rates are staying up. Spending more money they don't have will only make inflationary pressures worse and business failures more frequent.
The only way the government could act on this is to take it to parliament. That would require an unscheduled sitting between now and when parliament is dissolved for the election. None of the UWU members in parliament should vote on any arrangement. Any other course of action would be tainted because of the conflicts of interest of members of parliament and the Labor Party itself. For further information contact Graham Young 0411 104 801 or graham.young@aip.asn.au
List of food and accommodation companies who have gone into administration in last two months4 BROTHERS BREWING PTY LTD 4S HOSPITALITY PTY LTD A.C.N. 679 046 452 PTY LTD AUNITED BNC MANAGEMENT PTY LTD BAROLOS ITALIANO PTY LTD BEAR BOY PTY LTD BLACKWOOD CORPORATE GROUP PTY LTD BOSTON FERN PTY LTD BROWNLIE PATTERSON INVESTMENTS PTY LTD BURROWS & MAYES PTY LTD CAMPION COTTAGES PTY LTD CATNAPPER PTY LTD CINARGO PTY LTD CJ'S FORTITUDE VALLEY PTY LTD CLADCO ENTERPRISES PTY LTD CLUB 2112 PTY LTD COFFEE NOOK PTY LTD CUISINIER AUSTRALIS PTY LTD DEATH BEFORE DECAF PTY. LTD. EVE'S SWEETS PTY LTD FLOPPY NUTS PTY LTD FRANKIE'S SMOKEHOUSE PTY LTD GOLD COAST QSR CONCEPTS MIAMI PTY LTD GREENLAND INVESTMENT PTY LTD GROUNDED @ BUDERIM PTY LTD GROUNDED @ WOOMBYE PTY LTD GULLY TRAP PTY LTD HASN PTY LTD HIKARU BRISBANE PTY LTD HOGS ON THE RANGE PTY LTD JAD FRESH PTY LTD JAP AUSTRALIA PTY LTD JD'S CHICKEN CO PTY LTD JRH FAMILY GROUP HOLDINGS PTY LTD JWX HOLDINGS PTY LTD KJ ASSETS QLD PTY LTD LILLIPAD PTY. LTD. LUX VENUE GROUP PTY LTD MAISONNETS PTY LTD MASU IZAKAYA PTY LTD MR KOJIMA PTY LTD NGF (QLD) PTY LTD NICKEL TO DIME PTY LTD NOURISH TO FLOURISH CAFE PTY LTD PEPPERJETTS PTY LTD PIRES HOSPITALITY GROUP PTY LTD RED ROOSTER FOREST LAKE PTY LTD RIYAN PTY LTD SANDWICH BAR 79 PTY LTD SELINA OPERATION BRISBANE PTY LTD SELINA OPERATION MAGNETIC ISLAND PTY LTD SUR AUSTRALIA PTY LTD SUZY HOSPITALITY PTY LTD THE BREW BARON BEER COMPANY PTY LTD THE DISPENSE STATION PTY LTD TRAWZLOE PTY LTD TREVBRO PTY LTD VEND MARKET PLACE PTY LTD VERAZ PTY LTD VERONA SC PTY LTD WHAT'S IN THE POT? PTY LTD WHITE HORSE RANCH PTY LTD WHY NOT CONNECT 1 PTY LTD WORTHY PIE CO. PTY LTD YZ CHINESE CUISINE PTY LTD
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