FEDERAL Resources Minister Ian Macfarlane has called for the State's ban on uranium mining to be reversed, saying it is stifling a billion-dollar industry for North Queensland.
The Toowoomba-based MP was speaking at Townsville Enterprise's business leaders forum on Friday.
In a wide-ranging debate, Mr Macfarlane shrugged off the skills shortage as a consequence of a strong economy, predicted an enormous boost to Townsville with the arrival of PNG gas and warned there was no simple answer to high petrol prices.
Mr Macfarlane said about $5 billion worth of uranium was sitting in just two deposits near the Northern Territory border in North Queensland - Laramide's Westmoreland and Summit Resources' Valhalla.
He said the minerals would all need to be exported from the Port of Townsville, creating jobs and servicing the twin cities and mine sites.
"Peter Beattie needs to allow mining in Queensland," he said.
"All they are doing at the moment is making sure all the uranium mining is in South Australia and the Northern Territory and that is of no benefit to Townsville."
Last month, Premier Peter Beattie deferred a decision until after the Labor national conference next year.
Meanwhile, South Australian Labor Premier Mike Rann has backed a new mine in South Australia and Opposition Leader Kim Beazley has said the final approvals for the Honeymoon uranium mine would not breach the party's 'no new mines' policy.
A spokesman for Mr Beattie reiterated yesterday that Queensland would wait for the federal ALP to decide the issue.
On skills shortages, Mr Macfarlane conceded Australia was short of every trade and profession 'right down to labourers' but indicated there was little more the Government could do.
"Remember the shortage is a negative result of a positive environment," he told the forum.
"Australia is growing, investment is strong and unemployment is the lowest on record.
"We just don't have the people to put into the positions."
Mr Macfarlane said Townsville would be a big winner from power generation from PNG gas.
He said the landed price for gas would be competitive and, in power generation, would provide the city with more competitive electricity than the current reliance on inefficient transmission from central Queensland.
Mr Macfarlane said one of the best features about gas-fired generation was that if an industry like an alumina refinery came to Townsville, more modules could easily be added to a gas-fired power plant.
On fuel prices, he said the Government had faced a dilemma in its budget deliberations over whether to cut fuel excises or cut income taxes and fund superannuation reform and services such as defence. He said any cut in excise would have been 'gobbled up tomorrow' and that there was no simple answer to the high prices.
