The Australian Conservation Foundation has warned it will pursue all
avenues, including possible legal action, to stop a concessional loan
being granted to a rail line associated with the controversial Adani
coalmine.
The ACF’s president, prominent businessman Geoff Cousins, told Guardian Australia on Tuesday the environmental group would “pursue [directors of the Northern Australia Infrastructure Facility (Naif)] through whatever means possible” in the event the Naif granted the rail project a loan.
Cousins pointed to evidence given before a Senate estimates hearing earlier this week where officials for Infrastructure Australia said they had not identified the rail project linking the coalmine with the Abbot Point port as a priority.
Infrastructure Australia produces a priority list of nationally significant investments which is supposed to guide government investment decisions.
Infrastructure Australia’s chief executive, Philip Davies, said he had not yet discussed the Adani project with the Naif, even though the rail project has completed a preliminary assessment and been referred for further consideration.
Adani is seeking a $900m concessional loan from the Naif for the rail
line which links the mine with Abbot point. Infrastructure Australia
and the Naif are required to consult on projects worth more than $100m.
Cousins said the evidence given in Senate estimates this week indicated the loan was nowhere near being granted. “Clearly all the rumours that this loan is about to be granted are untrue,” he said.
“I cannot see from this evidence that there is any way this loan can be granted.”
Cousins contends the directors of the Naif could be in breach of their fiduciary duties if they approve a loan to the project.
He said the ACF has already been advised by lawyers at Environmental Justice Australia that Naif directors would breach their duties to consider the financial risks associated with climate change if they make an investment decision in support of a Galilee Basin rail project.
The warning comes as the Queensland government is battling divisions about whether to give the project a royalty holiday, and the federal resources minister, Matt Canavan, claimed concessional treatment on royalties would be akin to a “rent free” period when a tenant moved into a new commercial building.
Adani was also discussed by both the Coalition party room and by the Labor caucus on Tuesday.
During discussions in the government party room, the LNP member for Capricornia, Michelle Landry, told colleagues she understood the Adani project was causing grief for government MPs in the southern states, but it was important for regional job creation.
Her Queensland colleague, George Christensen, objected to the ongoing civil society campaign against Adani, which has been successful enough to be causing Liberal MPs in the cities some grief.
In the Labor caucus, meanwhile, the Victorian Labor MP David Feeney asked whether the shadow environment minister, Tony Burke, was confident the Turnbull government was following proper procedures regarding environmental approvals.
He also made a broader point about Labor’s positioning, and expressed a view that the opposition needed to be clear about when specific decisions about the project would be taken.
Labor MPs in coalmining areas in New South Wales are concerned the Queensland project, if it proceeds, will displace existing coal operations, leading to job losses in a traditional Labor stronghold, the Hunter region.
The Labor member for the north Queensland marginal seat of Herbert, Cathy O’Toole, told Guardian Australia on Tuesday the state government had to determine issues like whether the project would get a royalties holiday or not.
She said her view of Adani was the project should only proceed on its commercial merits. “I absolutely support federal Labor’s position – why would we give $1bn to a foreign company?”
O’Toole said if there was a spare $1bn to spend in regional Queensland, “if we’ve got that money lying around, then I’ve got ideas for job-creating opportunities”.
With one eye on marginal seats in northern Australia and another on the looming state election, where the Queensland Labor government is attempting to be re-elected, federal Labor has been attempting to walk a line which says Adani should proceed if it meets the relevant approvals, but the project should not be the recipient of government support.
The ACF’s president, prominent businessman Geoff Cousins, told Guardian Australia on Tuesday the environmental group would “pursue [directors of the Northern Australia Infrastructure Facility (Naif)] through whatever means possible” in the event the Naif granted the rail project a loan.
Cousins pointed to evidence given before a Senate estimates hearing earlier this week where officials for Infrastructure Australia said they had not identified the rail project linking the coalmine with the Abbot Point port as a priority.
Infrastructure Australia produces a priority list of nationally significant investments which is supposed to guide government investment decisions.
Infrastructure Australia’s chief executive, Philip Davies, said he had not yet discussed the Adani project with the Naif, even though the rail project has completed a preliminary assessment and been referred for further consideration.
Cousins said the evidence given in Senate estimates this week indicated the loan was nowhere near being granted. “Clearly all the rumours that this loan is about to be granted are untrue,” he said.
“I cannot see from this evidence that there is any way this loan can be granted.”
Cousins contends the directors of the Naif could be in breach of their fiduciary duties if they approve a loan to the project.
He said the ACF has already been advised by lawyers at Environmental Justice Australia that Naif directors would breach their duties to consider the financial risks associated with climate change if they make an investment decision in support of a Galilee Basin rail project.
The warning comes as the Queensland government is battling divisions about whether to give the project a royalty holiday, and the federal resources minister, Matt Canavan, claimed concessional treatment on royalties would be akin to a “rent free” period when a tenant moved into a new commercial building.
Adani was also discussed by both the Coalition party room and by the Labor caucus on Tuesday.
During discussions in the government party room, the LNP member for Capricornia, Michelle Landry, told colleagues she understood the Adani project was causing grief for government MPs in the southern states, but it was important for regional job creation.
Her Queensland colleague, George Christensen, objected to the ongoing civil society campaign against Adani, which has been successful enough to be causing Liberal MPs in the cities some grief.
In the Labor caucus, meanwhile, the Victorian Labor MP David Feeney asked whether the shadow environment minister, Tony Burke, was confident the Turnbull government was following proper procedures regarding environmental approvals.
He also made a broader point about Labor’s positioning, and expressed a view that the opposition needed to be clear about when specific decisions about the project would be taken.
Labor MPs in coalmining areas in New South Wales are concerned the Queensland project, if it proceeds, will displace existing coal operations, leading to job losses in a traditional Labor stronghold, the Hunter region.
The Labor member for the north Queensland marginal seat of Herbert, Cathy O’Toole, told Guardian Australia on Tuesday the state government had to determine issues like whether the project would get a royalties holiday or not.
She said her view of Adani was the project should only proceed on its commercial merits. “I absolutely support federal Labor’s position – why would we give $1bn to a foreign company?”
O’Toole said if there was a spare $1bn to spend in regional Queensland, “if we’ve got that money lying around, then I’ve got ideas for job-creating opportunities”.
With one eye on marginal seats in northern Australia and another on the looming state election, where the Queensland Labor government is attempting to be re-elected, federal Labor has been attempting to walk a line which says Adani should proceed if it meets the relevant approvals, but the project should not be the recipient of government support.
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