Coal funds to help Trad’s Treasury

THE Left’s Jackie Trad will walk into her new Treasury office with a potential $1.8 billion windfall from coal royalties.

The boost comes from continued demand for coking coal and restrictions on supply caused by Cyclone Debbie which continue to affect the industry.

About 70 ships are now sitting off Queensland’s coal ports awaiting a berth, some up to three weeks, because of supply constraints.

Recently 45 ships were sitting off Dalrymple Bay alone and the nearby Hay Point coal port had 21 ships last week

Treasury bureaucrats are notoriously conservative but are likely to add at least $1 billion to income from coal royalties at the midyear economic review due before Christmas.

McCullough Robertson strategic adviser Michael Roche said much stronger than projected coal prices would deliver better financial outcomes for Queensland for the next three years.

“This would be good news for funding the Government’s infrastructure priorities and provide an opportunity to reduce debt,’’ Mr Roche said.

“Treasurer Trad’s first mid year budget review – due for release in the next couple of weeks – could be a very nice Christmas present for the reelected Labor Government, and all thanks to coal.”

Treasury’s 2017-18 Budget forecast coking coal prices to be $US131 a tonne over the year but it is now $US220.