Taxpayers’ funds will be used to pay entitlements to Queensland Nickel workers.

Federal Employment Minister Michaelia Cash has announced the government will use the Fair Entitlements Guarantee fund to assist employees.

She said it would give the Government the ability to chase down funds owed by companies run by MP Clive Palmer.

“The Commonwealth is now one of the largest creditors of Queensland Nickel,” Senator Cash said.

“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.

“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.”

“Blame for what has occurred should lay squarely at the feet of Clive Palmer and that is why, in stepping in to assist with the fair entitlements guarantee, the Commonwealth, via the special purpose liquidator, which we will seek to appoint, will pursue the taxpayer funds that are going to be expended in full,” she said.

Herbert MP Ewan Jones shed tears while speaking at the press conference in Townsville.

“This is a tough day, even though this is a great announcement,” he said.

“This is a tough day in Townsville because this says this is the end of the line for a lot of these people.

“This is taxpayers’ money and no-one in Queensland Nickel who has lost their job wants to have taxpayers’ money.”

News Corp media outlets are reporting that the Turnbull Government is considering a Christopher Skase-style pursuit for Mr Palmer’s assets if the EFG funds were used to pay the entitlements.

Mr Palmer continues to claim that he ceased being a director of Queensland Nickel when he joined federal Parliament.

But a damning report from the refinery’s administrators this week accused Palmer of siphoning millions of dollars from the company to himself, and claimed he had continued to play an active role in the company’s affairs.