The Federal Government will use taxpayers’ money to deliver around $74 million in entitlement payments owed to workers sacked from the Queensland Nickel refinery and has promised to pursue parliamentarian Clive Palmer.

Employment Minister Michaelia Cash confirmed the nearly 800 Townsville refinery workers will be able to claim their unpaid entitlements under the government’s Fair Entitlements Guarantee (FEG).

She said the government will chase Mr Palmer and his businesses to ensure the stripped money from the Queensland Nickel company are repaid.

“The Commonwealth is now one of the largest creditors of Queensland Nickel. The Commonwealth will use its rights as a creditor under the Corporations Act, to seek to appoint a special purpose liquidator to pursue the recovery of this $73 million that has been ripped off from employees,” she told reporters in Townsville.

“This has never been done by a Commonwealth Government before. It has been done because of the seriousness of the situation.

“We will use the powers of a special purpose liquidator to pursue these funds wherever possible.

“This includes pursuing Clive Palmer and all of his entities that have been the beneficiaries of the cash that has been stripped from Queensland Nickel.”

The FEG was set up under the Howard government to guarantee employees received their unpaid entitlements, and normally kicks in once a company is in liquidation.

The $73.9 million bill will be the largest payout under FEG for a corporate collapse.

The government will nominate Stephen Parbery, founding partner of PPB Advisory, as the Special Purpose Liquidator to recover the almost $74 million on behalf of taxpayers.

Queensland Nickel is expected to collapse into liquidation next Friday.

– TiVi Tuan-san