The Queensland Resources Council and its relentless lobbying for coal
Since former Liberal ministers Christopher Pyne and Julie Bishop have stirred the debate about the ministerial code of conduct, given their recent appointments to consulting giant EY and aid consultancy firm Palladium, this week we’re taking a look at Ian Macfarlane and the Queensland Resources Council (QRC).
Ian Macfarlane, the former Resources Minister under John Howard, and Minister for Industry and Science under Tony Abbott and Malcolm Turnbull, left parliament in June 2016.
Just before Macfarlane’s retirement from politics, Tony Abbott lauded Macfarlane for scrapping the Gillard government’s mining tax:
“The member from Groom, Ian Macfarlane, was the resources minister who scrapped the mining tax. This was the job-destroying, investment-killing tax which did not raise any revenue. It was a magnificent achievement by the member for Groom in his time as minister reborn, as it were. I hope this sector will acknowledge and demonstrate their gratitude to him in his years of retirement from this place.”
A few months later, in September 2016, the mining sector duly showed its gratitude, appointing Macfarlane as the chief executive of the QRC, a job that would earn him in excess of $500,000 per year. It’s worth noting that that particular revolving door is still turning — last year Kirby Anderson started a new job at the QRC, less than a week after leaving his job as a former senior advisor to Premier Palaszczuk.
The mining sector had long appreciated the work of Macfarlane. At a Minerals Council of Australia (MCA) parliamentary dinner in June 2013, Macfarlane received a standing ovation from the mining community. During Macfarlane’s departure from parliament, MCA CEO Brendan Pearson, also heaped praise.
The QRC, which Macfarlane now leads, is the peak industry association for the mining and energy sectors in Queensland.
Its 70-odd full members include local companies BHP, Downer Group, Origin Energy, Rio Tinto, Santos and Whitehaven Coal, as well as foreign giants Anglo American, ConocoPhillips, Glencore and Shell. The QRC is also an associate member of the Minerals Council of Australia (MCA).
The QRC signed on to a rather meaningless set of “climate change policy principles” in 2011, which features buzzwords like “revenue neutral” and “market-based mechanism” — but doesn’t actually commit the industry to any particular policy mechanism or targets. The QRC hasn’t updated the principles since 2011.
In 2011 the QRC also lobbied against Australia’s price on carbon warning of the negative impact it would have on the economy and the resources sector, and welcomed its repeal in July 2014.
Just before Macfarlane joined the QRC, in a submission to a Queensland government consultation on “Advancing Climate Action in Queensland”, the QRC declared that the deployment of High Efficiency, Low Emission (HELE) coal fired power plants is a “key first step along a pathway to near-zero emissions”.
The QRC’s lobbying style
The QRC have a fairly conspicuous lobbying style. Like the MCA, they garner an enormous amount of media coverage. In their media/external communications, the QRC often collaborates closely with its member companies, the Queensland government, and others including the CSIRO.
For example, in a case study discussing media coverage of the Santos Arcadia gas project announcement, QRC describes how Santos, the QRC and the office of the Queensland Natural Resources, Mines and Energy Minister Anthony Lynham all coordinated messaging and media. They shared materials prior to the announcement, and then each ‘party’ to this process distributed a press release:
“all with slightly different messaging to maximise media coverage. For example, the Minister focused on jobs, Santos detailed the components of the project while the QRC called on southern governments to back the gas industry”
QRC encourages its member companies to collaborate with it on media:
“The media is a fundamental stakeholder for the resources industry to take control of its own messaging, forge closer relationship with government and improve its social licence to operate. Understandably, the industry has a wide-spread reluctance to engage with this stakeholder however working with the QRC can minimise many risks through pre-recording interviews and assistance with reactive media”
In May, leaked market research commissioned by the QRC showed that the mining sector was “nearing crisis” in Queensland, particularly among young people. One of the primary findings of the research was that participants believed that the resources industry is “aligned with government in continuing reliance on coal power stations”. So, despite representing corporate miners of various commodities, the QRC is best known for just one — coal.
‘Clean coal’
The general public’s perception that the QRC is a supporter of coal-fired power stations is a fairly accurate one. Like the Minerals Council of Australia, Macfarlane and the QRC are big believers in HELE coal, or high efficiency, low emissions coal-fired power stations.
Macfarlane has repeatedly called for a new HELE coal-fired power station be built in North Queensland — in May, July and August 2018 and again in March this year.
In June 2018, Macfarlane intervened in the negotiations around the National Energy Guarantee, and called on the federal government to underwrite new coal-fired power stations. Later that month, Macfarlane claimed that HELE coal fired power stations can reduce emissions by 30%.
After Queensland Premier Palaszczuk established CleanCo in August last year, Macfarlane suggested that the Queensland government build another coal-fired power station.
In October, Ian Macfarlane argued that a strong Australian coal industry is compatible with Paris reduction targets, and in February this year, he claimed that Australian coal provides high-efficiency, low-emissions energy.
Narrative building around resources
The QRC has also been wildly successful at building the narrative around the importance of the resources sector to jobs and government revenues, particularly among politicians.
Following Scott Morrison’s ascendancy to the Prime Ministership in August last year, Ian Macfarlane welcomed in his words, a known “fan” of the coal industry.
In the heat of the federal election campaign, Macfarlane called on all candidates vying for the marginal Federal electorate of Flynn to make their commitment to the resources sector clear before the 18 May election. Later that month, Macfarlane called on the Labor party to make an explicit commitment to the future of coal.
Just before the election, Macfarlane was in a buoyant mood, as the QRC celebrated soaring demand for Queensland coal. Following the election, Macfarlane claimed that the election result proved Queensland supports coal mining.
Adani & the Galilee Basin
No story about Ian Macfarlane and the QRC would be complete without mentioning Adani’s Carmichael coal mine in Queensland’s Galilee Basin. Since taking the job in late 2016, Macfarlane has railed against environmental approvals and “unnecessary delays” to the Adani project.
In April, Macfarlane described a Queensland Greens’ bill to ban coal mining in the Galilee Basin “dangerous” and “bumper sticker legislation”. Later that month, while Macfarlane acknowledged that coal-fired power will inevitably be phased out, he said that India should have access to the cleanest coal from Queensland.
Immediately following the federal election, Macfarlane demanded that the Queensland government immediately approve Adani’s mine. The QRC then convened North Queensland mayors for a #DayofAction, again demanding the approval of the mine.
On 6 June, the QRC organised the “Queenslanders Unite Rally” in Brisbane, complete with t-shirts and banners, all printed and authorised by the QRC.
On 12 June, Macfarlane confirmed what climate activists had always known and feared — that the Adani mine is intended to be “the ice-breaker that will lay down those baselines and will provide the infrastructure”.
Anti-activism
Macfarlane has been explicit about his contempt for protestors, suggesting late last year that there should be “zero tolerance” for anti-resources activists, and in May accused Stop Adani protestors of “economic vandalism”.
Arguably, the QRC’s most effective line of attack has been in relation to jobs. He repeatedly called the Stop Adani campaign “anti-jobs”, and said that “Queenslanders were tired of the Greens constantly moralising and telling people when they can and can’t have a job”.
Royalties
The QRC has also fought against changes to coal and gas royalties, claiming that any increase would threaten exports to Japan, or come at a cost to Queensland homes and businesses.
In July 2017, Macfarlane said NSW & Victoria should be penalised in the distribution of GST for not developing their gas reserves.
Postscript
On its website, the QRC correctly identifies the ‘most significant long term threat’ to the future of the Great Barrier Reef is climate change. Despite claiming to have a “very strong interest in preserving the biodiversity of the iconic Great Barrier Reef”, the QRC’s pro-coal and gas advocacy will only accelerate its decline.
