Queensland is set to spend up to $200m for a stake in Virgin, but the LNP says it will end the deal if it wins government.
Queensland is set to spend up to $200m for a stake in Virgin, but the LNP says it will end the deal if it wins government.

LNP’s pledge to ‘tear up’ $200m Virgin deal

The LNP will tear-up a deal with Virgin Australia if it wins government in a bombshell pledge that could rock the state's relationship with the carrier's new American owner.

Negotiations are ongoing between Virgin owner Bain Capital and the Labor Government, through Queensland Investment Corporation, to invest up to $200m in the rescued carrier.

An in-principle agreement has been reached, but no deal has been formally signed.

The Courier Mail can reveal the LNP will tear up the in-principle agreement and will refuse to sign any deal if it wins government on October 31.

LNP Deputy Leader Tim Mander said the cash would be redirected to a newly created Queensland promotional fund.

"The LNP has consistently said the $200m should have been invested in a tourism and marketing fighting fund for Queensland," he said.

"That's been vindicated by Virgin's decision to cut jobs and cut routes."

Comment has been sought from Treasurer Cameron Dick and Bain Capital.

An informal agreement between the parties has already been done to keep the airline's headquarters in Queensland.

Mr Mander confirmed the LNP would "lift the veil" and release details of any deal already done between the state and Virgin.

"Annastacia Palaszczuk's Treasurer cowardly hides behind an excuse of commercial confidentiality," he said.

"If it's a good deal, they should be upfront with Queenslanders."

Originally published as LNP's pledge to 'tear up' $200m Virgin deal


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