No word if Qld to be punished on royalties

16 Sep 2012, 1:12 pm   -   Source: AAP

The federal government is keeping mum on whether it will punish Queensland for increasing mining royalties.

The federal government is again refusing to say whether it will follow through with its threat to claw back money from Queensland for hiking mining royalties.

The state government in Tuesday's budget increased royalties for coal miners, a move which is expected to generate $1.6 billion over four years.

The hike came despite a threat from federal Treasurer Wayne Swan to dock Queensland every dollar in raised royalties by reducing federal funding.

The federal government had promised mining companies it would refund royalties in the final deal struck for its watered-down Minerals Resource Rent Tax (MRRT).

Mr Swan has yet to declare if he will punish Queensland and on Sunday Prime Minister Julia Gillard also avoided the topic when pressed.

"On Campbell Newman's budget, the real issue for the people of Queensland is the loss of jobs and the loss of services and that's what I've spoken about today," she said.

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