Media Statements

Adani Australia welcomes scrutiny on council funding agreement

Adani Australia welcomes scrutiny and oversight of the funding agreement with Isaac Regional Council, knowing that all payments made are in compliance with State Government project approval conditions, the Local Government Act 2009 (Qld) and the Isaac Regional Council Revenue Policy.

Adani Australia always has, and will continue to, conduct every aspect of its business in full compliance with the law and to the highest ethical standard.

Any payments as agreed between Isaac Regional Council and Adani Australia are a condition of Queensland Government approval of the project, as stated in the Carmichael Coal Mine and Rail Project: Coordinator General’s evaluation report on the environmental impact statement, which was delivered by the Coordinator General in May 2014.

Like all other private companies that have similar agreements, we will continue to meet the Queensland Government and Council’s requirements for user-pays cost recovery.

ENDS

For further information contact the Adani Australia Media Team:


E: [email protected]

P: +61 438 031 780
Statement from Adani Australia in response to ABC News ‘Adani to pay for Isaac council staff working on Carmichael mine activities’ by Josh Robertson on 28.05.2018

“Any payments as agreed between Isaac Regional Council and Adani are a condition of Queensland Government approval of the project, as stated in the Carmichael Coal Mine and Rail Project: Coordinator General’s evaluation report on the environmental impact statement, which was delivered by the Coordinator General in May 2014.

“Furthermore, Queensland local government legislation clearly state that councils may follow user-pays principles to recover costs.

“Councils across Queensland apply a “user pays” principle to recover their costs to assess proposals and negotiate agreements with companies.

“Like all other private companies we comply with Council requirements. We will continue to meet the Council’s requirements for user-pays cost recovery.”

On background:

It's usual practise in Queensland for developers, miners and coal seam gas companies to pay for the costs incurred by local government to negotiate agreements and assess proposals relating to private commercial operations and developments.

In particular:

· Section 97 of the Local Government Act states that a local government may, under a local law or a resolution, fix cost-recovery fees.
· Regulation 193 of the Local Government Regulations states that a local government must in its revenue policy state its cost recovery methods.
· The Isaac Regional Council Revenue Policy (attached) states:

“Section 97 of the Local Government Act 2009 allows Council to set cost-recovery fees.

“The Council recognises the validity of fully imposing the user pays principle for its cost-recovery fees, unless the imposition of the fee is contrary to its express social, economic, environmental and other corporate goals. This is considered to be the most equitable and effective revenue approach, and is founded on the basis that the regions rating base cannot subsidise the specific users or clients of Councils regulatory products and services.”


· Full version available online of the Carmichael Coal Mine and Rail Project: Coordinator General’s evaluation report on the environmental impact statement https://www.statedevelopment.qld.gov.au/resources/project/carmichael/carmichael-coal-mine-and-rail-cg-report-may2014.pdf
· The specific project approval condition that is relevant to this article is: Condition 7 Transport Infrastructure Section (B) Part (IV), which can be found on page 456 of the report above.

Statements from other parties:

· Isaac Regional Council - https://www.isaac.qld.gov.au/-/resources-projects-must-pay-their-way-to-stop-disadvantage?redirect=https%3A%2F%2Fwww.isaac.qld.gov.au%2Fhome%3Fp_p_id%3D101_INSTANCE_f7Gg%26p_p_lifecycle%3D0%26p_p_state%3Dnormal%26p_p_mode%3Dview%26p_p_col_id%3Dcolumn-2%26p_p_col_count%3D2
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