Richard Di Natale (Victoria, Australian Greens) Share this | Link to this | Hansard source

My question is to the Minister for Resources and Northern Australia, Minister Canavan, and it is a question relating to the climate destroying and job killing Adani coalmine.

Government Senators:

Government senators interjecting—

Richard Di Natale (Victoria, Australian Greens) Share this | Link to this | Hansard source

Listen to this. You will like this.

Stephen Parry (President) Share this | Link to this | Hansard source

Order on my right!

Richard Di Natale (Victoria, Australian Greens) Share this | Link to this | Hansard source

The ABC last week uncovered that the company structure of Adani means that at least $3 billion in royalty rights and even more in assets can be diverted to tax havens owned by the billionaire Adani family. So, even if the project goes bust, Adani could sell it to someone else, and yet royalties would still be paid into the Adani family's Cayman Islands account. Does the minister agree with the assessment of financial analyst Adam Walters that this is a structure that guarantees the Adani family will be enriched while others are impoverished?

Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Link to this | Hansard source

No, I do not, Senator Di Natale, but I thank you for your question. I just want to take issue first with your description of it being 'climate destroying' and 'job killing'. Clearly, the coalmine will generate thousands of jobs in North Queensland. I do not know the last time, Mr President, that Senator Di Natale visited North Queensland, but if he had visited in the past year he would have heard from local businesses, he would have heard from tourism businesses as well, their need to have more jobs, more opportunity and more business in their communities, and he would have heard the overwhelming support for this coalmine in North Queensland. The other point—

Senator Whish-Wilson interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Order! Pause the clock. Senator Williams, a point of order.

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Mr President, I am very interested in the answer that Senator Canavan is delivering, and I cannot hear for interjections being screamed by the Greens from across the other side of the chamber. Could you please bring them to order so we can listen to this very important answer.

Stephen Parry (President) Share this | Link to this | Hansard source

Thank you, Senator Williams. It is a good point to remind all senators not to interject and to allow the questions to be asked in silence and the answers to be given. Senator Canavan, you have the call.

Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Link to this | Hansard source

Thank you, Mr President. I was going on to also dispute Senator Di Natale's opinion that this project would be climate destroying. We are lucky in this country and should be proud that we have some of the highest quality coals in the world. The rest of the world will be using coal-fired power for many, many years to come. The more energy intensive, the higher quality the coal that they use and the fewer emissions there will be. So it is a good thing for the world if we, as a country, can develop our coal industry and replace the coals that are used from other countries, which are much lower quality—and it is widely accepted that the coal in India, in particular, is of lower quality than the coal that Adani will mine here in Queensland. So that is a good thing for the environment.

I also think the Senate should know that Adani are not new to Australia. They are a company that have operated here now for six years. They have operated the Abbot Point Coal Terminal, just near Bowen, in Queensland. If the allegations and suspicions that Senator Di Natale is making are true, it would be apparent in their corporate behaviour over the six years, you would think. I am not aware of any allegations for investigation into that matter. (Time expired)

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Di Natale, a supplementary question.

Richard Di Natale (Victoria, Australian Greens) Share this | Link to this | Hansard source

Given that neither the government nor the Labor opposition refused to rule out pouring a billion dollars of taxpayer money—that is money that belongs to ordinary mums and dads around the country—into assets that will be owned by Adani's rail line company, which we know can be shifted straight to the Cayman Islands, what is the government doing to ensure that future taxpayers' money does not simply end up in the family of a notorious multinational tax avoider?

Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Link to this | Hansard source

The first point I would make is that what we are doing as a government is supporting a robust and strong corporate tax regime. The government has made a number of changes to strengthen that corporate tax regime to make sure the companies in this country do pay their fair share of tax, and I certainly expect and will do everything I can as the minister to ensure that companies that make profits in this country pay their fair share of taxes.

As I mentioned in response to the first question from Senator Di Natale, Adani are a company operating in this country right now. They have operated a large coal terminal in Queensland for six years. Again, if there have been allegations or if Senator Di Natale has allegations of Adani not paying their fair share of corporate tax, I would be interested to hear them and the government would of course be looking to follow those up with the Australian Taxation Office. But, to my knowledge, there have not been such allegations. I expect all companies in this country to pay their fair share of tax. Adani are no different than any other company.

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Di Natale, a final supplementary question.

Richard Di Natale (Victoria, Australian Greens) Share this | Link to this | Hansard source

We know that Adani are simply going to transfer price the coal out to another subsidiary. They are going to do exactly what BHP and Rio do. None of the big miners have large income tax bills. We know that. We know Adani is going to be no different, with no taxes and diverted royalties. I ask a really clear question: how much do you expect the Commonwealth to collect from the Adani Group?

Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Link to this | Hansard source

The government does not make precise details or estimates of individual company's allocations. I do take issue with one statement Senator Di Natale said in that question. I think he said that somehow the miners do not have big income tax bills or tax bills to the Commonwealth. The mining sector is the largest contributor to our corporate tax system by sectors.

Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

So they should be, ripping our resources out!

Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Link to this | Hansard source

Senator Cameron, you are right. So they should be, Senator Cameron. They do make a lot of wealth for our country and they do pay a significant share of their profits in tax revenue to this nation. It helps fund important things across our country. That is why as a government we support further investment in our mining sector that can help grow that sector, grow our economy, create jobs and provide even more tax revenue to the Commonwealth government and state governments so that we can fund important public services in this country. I am confident this project will provide those benefits in taxes, jobs and other services. (Time expired)