RTR3EH2Y
Australian billionaire Clive Palmer speaks at a news conference to announce his plan to build Titanic II, a modern replica of the doomed ocean liner, at the Ritz in central London March 2, 2013. The ship will largely recreate the design and decor of the fabled original, with some modifications to keep it in line with current safety rules and shipbuilding practices, and the addition of some modern comforts such as air conditioning, Palmer said at a news conference in New York earlier. Reuters/Olivia Harris

Clive Palmer’s Queensland Nickel confirmed on Friday that it will put down 237 workers after the Queensland government refused to become the guarantor of $30 million loan to keep the company afloat, in December. Following the announcement, police were called in and additional security guards were deployed at the plant’s gate.

Clive Mensink, the company’s managing director, described the situation as “a sad state of affairs” as the state government extended its support behind the industry in the south-east of Queensland alone.

"The Queensland Government has made it clear despite the nickel price being the lowest in 15 years, it has no interest in assisting Queensland Nickel in providing continued employment for over 800 families in Townsville," the ABC quoted him as saying.

He added that Palmer chose to support Queensland Nickel and Townsville on the request of former Labor Premier Anna Bligh, but said he regretted that the current premier Annastacia Palaszczuk’s lack of concern for the Townsville families cost the jobs of 237 workers.

Queensland Nickel will now continue its operations in Townsville with the 2,000 workforce that it could sustain.

According to Acting Premier Jackie Trad, the government was willing to cooperate with Palmer given that he handed over the full financial statements of his wider business ventures.

"The government did try to work with Queensland Nickel to try to secure these jobs," the Sydney Morning Herald quoted her as saying. "Unfortunately, the government's request for access to the full financial statements of Mr Palmer's businesses was not responded to and we could not in all good conscience hand over money to a private company without full financial due diligence."

Trad added that the government would be sending employment counsellors to the workers who lost their job on Friday.

According to Australian Workers' Union Queensland state secretary Ben Swan, the decision was a devastating outcome for the workers who were laid off.

RELATED STORIES