❓ Mr. Blayney questions the Premier regarding the implications of the proposed special economic zone in Darwin for northern Western Australia, particularly the Kimberley region. The Premier expresses concern over the exclusion of the Kimberley and northern Queensland, highlighting potential disadvantages for WA's resource sector.
AnsweredQoN 437Legislative Assembly
QuestionView source ↗
DARWIN — SPECIAL ECONOMIC ZONE
437. Mr I.C. BLAYNEY to the Premier:
Thank you, Mr Speaker.
Several members interjected.
The
SPEAKER : I call the member for Butler to order for the second time!
The member for Girrawheen is on two calls already and I suggest that she now
temper her comments.
Mr I.C. BLAYNEY :
My question is to the Premier. I read with interest an announcement by the
Prime Minister that if the Labor Party is returned, it will create a special
economic zone in the Northern Territory, resulting in a reduction in the
company tax rate of 10 per cent by 2018. Can the Premier please inform the
house of the implications this decision will have for northern Western
Australia?
437. Mr I.C. BLAYNEY to the Premier:
Thank you, Mr Speaker.
Several members interjected.
The
SPEAKER : I call the member for Butler to order for the second time!
The member for Girrawheen is on two calls already and I suggest that she now
temper her comments.
Mr I.C. BLAYNEY :
My question is to the Premier. I read with interest an announcement by the
Prime Minister that if the Labor Party is returned, it will create a special
economic zone in the Northern Territory, resulting in a reduction in the
company tax rate of 10 per cent by 2018. Can the Premier please inform the
house of the implications this decision will have for northern Western
Australia?
AnswerView source ↗
I thank the member for the question.
The Prime Minister, Kevin Rudd, today announced in Darwin
that the Northern Territory, or Darwin in particular, will be a special
economic zone to try to stimulate investment; that, as the member intimated in
his question, the company rate of tax will be cut by a third, by 10 per cent
nominal; and that there will be special rules about investment, which I take to
mean a relaxation of Foreign Investment Review Board regulations relating to
Darwin and parts of the Northern Territory.
I support tax concessions and incentives for development in
the north of Australia, and I wonder immediately: why is the Kimberley excluded
and, indeed, why is northern Queensland excluded? We should be encouraging
people to go there. One of the answers is, apparently, that the commonwealth
cannot discriminate between states, but it can discriminate as far as the
territories are concerned. It can therefore offer lower company tax in the
territories but not in the states. However, that seems to miss the point that
for a long time—I think since the 1940s—taxpayers have had an
income tax zone rebate. Albeit the value has not been maintained, it applies
across all of northern Australia. Therefore, on the same basis, surely a lower
rate of company tax could apply right across northern Australia.
This is a serious issue for the Kimberley, which is a remote
part of Australia, and obviously this state, with a population of about 40 000
people, around half or more of whom are Aboriginal. It has a high rate of
unemployment—over eight per cent—compared with the rest of the
state. But the Kimberley has been growing; indeed this government has had a lot
of success in encouraging population and economic growth in the Kimberley. I
particularly compliment the Minister for Regional Development on that. The
gross regional product was $1.9 billion five years ago; it is now $3 billion.
The Kimberley is expanding not only in Broome, but also in Kununurra, obviously
with Ord stage 2. I urge people, if they have not done so recently, to go to
Fitzroy Crossing—the whole town has virtually been rebuilt. It is a
superb redevelopment with a lot of opportunities.
Mrs M.H. Roberts :
After we did the high school.
Mr M. McGowan : And
the hospital.
Mr C.J. BARNETT :
Yes; congratulations.
The point is that the Kimberley is a new frontier of
development and population for the state, and yet it has been ignored by the
Prime Minister and an advantage given to the next-door city of Darwin. This has
some profound implications for Western Australia. I want to comment in
particular about the biggest growth sector, which is the offshore oil and gas
sector. The Browse Basin, off the Western Australian coast, has yet to produce
a molecule of natural gas, yet it is a world-scale gas field, still at very
early stages of exploration and discovery; some announced, some not, are very
large, including oil within that. It is proper that this state would want to
see the economic benefits of that in Western Australia, and indeed within
Australia. It is a great economic opportunity. Now we find that a tax incentive
is being given to Darwin. Members well remember how, in the last days of the
Labor government in Western Australia, the Inpex project was lost from Western
Australia and went to Darwin, and all the economic benefits went with it. We
now have a situation in this state which is, I guess, round 2 of the saga of
the greater Browse fields. As members are aware —
Mr
M. McGowan : After you lost round 1.
Mr
C.J. BARNETT : Let us listen.
The
SPEAKER : Leader of the Opposition!
Mr
C.J. BARNETT : The Leader of the Opposition is not out there for Western
Australia—he is not out there for this state—he is out there
for the federal Labor government. That is what he does.
Several members interjected.
The
SPEAKER : Members!
Mr
C.J. BARNETT : Mr Speaker, he does not stand up for this state.
Several members interjected.
The
SPEAKER : Right. Premier.
Mr C.J. BARNETT : I
wish he would. Anyone who would pretend or wish to be Premier should stand up
for Western Australia, instead of delivering the messages from Canberra. He
should stand up for this state, like all Western Australians do.
I want to make a point because there is a critical little
play of two issues here, one of which is tax concessions for Darwin, when
Darwin has already succeeded in taking a major investment of about $30 billion
off Western Australia. Good luck to them, but bad luck for jobs, bad luck for
manufacturing in the Cockburn area—I know the member for Cockburn has
been speaking about that as recently as two days ago—and literally
thousands of jobs onshore in developing LNG, and all the opportunities for
skilled workers, employment and maintenance contracts going on. This is
critical, and there is a link between what Kevin Rudd announced today and what
is going on in Browse. I was surprised —
Mr D.J. Kelly : Now
it's Kevin's fault!
The SPEAKER :
Member for Bassendean!
Mr
C.J. BARNETT : The member for Bassendean is a union official. He should be
standing up for jobs in this state; if anyone should be, it should be him.
Several members interjected.
The SPEAKER :
Members!
Mr C.J. BARNETT :
People on this side are standing up for jobs in Western Australia, plus the
member for Cockburn. The member for Cockburn is the only person on the other
side who stands up for jobs and manufacturing in Western Australia.
Several members interjected.
The
SPEAKER : Member for Cannington!
Mr
C.J. BARNETT : I was surprised last Thursday to receive a letter addressed
to me, rather than the mines minister, from Hon Gary Gray, federal resources
minister. I was surprised, first, that the letter came from Gary Gray, a
federal minister, during the caretaker period.
Mr B.S. Wyatt :
That does not limit you guys, caretaker.
Mr
C.J. BARNETT : During a caretaker period.
The
SPEAKER : Member for Victoria Park!
Mr
C.J. BARNETT : There is only one federal politician I have discussed this
letter with, and that is the Prime Minister.
Several members interjected.
Mr C.J. BARNETT :
The other aspect is that it talks about the Browse field. In the letter from
Gary Gray —
Mr
M. McGowan : This is your distraction.
The
SPEAKER : Leader of the Opposition!
Mr
C.J. BARNETT : This is one of the biggest issues for Western Australia.
Mr
M. McGowan : A huge issue—if only you hadn't lost it.
The SPEAKER :
Leader of the Opposition!
Mr C.J. BARNETT :
The interjections just prove to me that the Labor Party will not stand up for
Western Australia, will not stand up for skilled workers and their jobs, and
will not stand up for the manufacturing industry.
Several members interjected.
The
SPEAKER : Okay; thank you very much. Member for Cannington, I call you to
order for the first time. We are making very little progress, and time is marching
on.
Mr
C.J. BARNETT : There are job losses throughout manufacturing in Western
Australia—probably less so here than elsewhere—and this is one
of the great opportunities that this country has to boost manufacturing and be
a major player in oil and gas; it is also a major issue to bring gas onshore
into the Western Australian and Australian economies. In the letter to me, Gary
Gray basically argues the case—as a minister in caretaker mode—that
Western Australia should give up its rights basically, and concede, as the
commonwealth has, and to remove all conditions that would bring any part or all
of that project onshore. I find that abysmal —
Mr
W.J. Johnston : That is not true!
Mr
C.J. BARNETT : — conduct by a resources minister, particularly for
someone who represents the manufacturing part of this state!
I will be very brief —
Several members interjected.
The SPEAKER :
Members!
Mr C.J. BARNETT : I
just wanted to mention that the point Minister Gray makes is that there are three
fields within the Browse project. Those three fields have, as estimated
currently, a total of 12.5 trillion cubic feet of gas. It is a huge project—world-scale.
One of those fields—Terosa—actually straddles commonwealth
waters and state waters, because Scott Reef is an island. Mr Gray goes on to
argue that across the whole the project the Western Australian share of the gas
is probably five per cent or less. Therefore, he argues, it is only five per
cent so give it away! Well, I will not give it away; five per cent of that gas—I
do not doubt his figure is right—is a huge amount of gas that could be
used in the Western Australian economy. I will quote one sentence of the
letter; this is what he says —
Mr W.J. Johnston :
You are not telling the truth!
Mr C.J. BARNETT :
Let us listen; I will quote it to the opposition.
Several members interjected.
Mr
C.J. BARNETT : I am quoting from my notes.
Several members interjected.
The
SPEAKER : Members!
Mr
C.J. BARNETT : I will quote a sentence from his letter, which reads,
according to my notes —
Development of the Browse fields
presents an exciting opportunity for Western Australia —
Listen —
to have the largest portfolio of
new floating facilities.
So, he sees it as a great achievement for Australia to have
the biggest portfolio of floating facilities! Where are the jobs? Where is the
gas for Western Australia? I think this is a serious issue, and I would say to
either Kevin Rudd or Tony Abbott, ''Look, developing the north is great.
Make tax concessions for people living there, company tax concessions, great,
but apply it right across northern Australia and include the Kimberley''—the
member for Kimberley should argue for that; I am sure she would—''include
the Kimberley in particular, and include northern Queensland.'' This is
discriminatory, and it could have severely adverse effects on the development
of the Kimberley and undo some of the good work that the Minister for Regional Development
and other ministers have done—undo it!
This is a critical issue, and I call on the Prime Minister—it
is a good policy idea—to include the Kimberley, and by all means
include his own state, northern Queensland.
The Prime Minister, Kevin Rudd, today announced in Darwin
that the Northern Territory, or Darwin in particular, will be a special
economic zone to try to stimulate investment; that, as the member intimated in
his question, the company rate of tax will be cut by a third, by 10 per cent
nominal; and that there will be special rules about investment, which I take to
mean a relaxation of Foreign Investment Review Board regulations relating to
Darwin and parts of the Northern Territory.
I support tax concessions and incentives for development in
the north of Australia, and I wonder immediately: why is the Kimberley excluded
and, indeed, why is northern Queensland excluded? We should be encouraging
people to go there. One of the answers is, apparently, that the commonwealth
cannot discriminate between states, but it can discriminate as far as the
territories are concerned. It can therefore offer lower company tax in the
territories but not in the states. However, that seems to miss the point that
for a long time—I think since the 1940s—taxpayers have had an
income tax zone rebate. Albeit the value has not been maintained, it applies
across all of northern Australia. Therefore, on the same basis, surely a lower
rate of company tax could apply right across northern Australia.
This is a serious issue for the Kimberley, which is a remote
part of Australia, and obviously this state, with a population of about 40 000
people, around half or more of whom are Aboriginal. It has a high rate of
unemployment—over eight per cent—compared with the rest of the
state. But the Kimberley has been growing; indeed this government has had a lot
of success in encouraging population and economic growth in the Kimberley. I
particularly compliment the Minister for Regional Development on that. The
gross regional product was $1.9 billion five years ago; it is now $3 billion.
The Kimberley is expanding not only in Broome, but also in Kununurra, obviously
with Ord stage 2. I urge people, if they have not done so recently, to go to
Fitzroy Crossing—the whole town has virtually been rebuilt. It is a
superb redevelopment with a lot of opportunities.
Mrs M.H. Roberts :
After we did the high school.
Mr M. McGowan : And
the hospital.
Mr C.J. BARNETT :
Yes; congratulations.
The point is that the Kimberley is a new frontier of
development and population for the state, and yet it has been ignored by the
Prime Minister and an advantage given to the next-door city of Darwin. This has
some profound implications for Western Australia. I want to comment in
particular about the biggest growth sector, which is the offshore oil and gas
sector. The Browse Basin, off the Western Australian coast, has yet to produce
a molecule of natural gas, yet it is a world-scale gas field, still at very
early stages of exploration and discovery; some announced, some not, are very
large, including oil within that. It is proper that this state would want to
see the economic benefits of that in Western Australia, and indeed within
Australia. It is a great economic opportunity. Now we find that a tax incentive
is being given to Darwin. Members well remember how, in the last days of the
Labor government in Western Australia, the Inpex project was lost from Western
Australia and went to Darwin, and all the economic benefits went with it. We
now have a situation in this state which is, I guess, round 2 of the saga of
the greater Browse fields. As members are aware —
Mr
M. McGowan : After you lost round 1.
Mr
C.J. BARNETT : Let us listen.
The
SPEAKER : Leader of the Opposition!
Mr
C.J. BARNETT : The Leader of the Opposition is not out there for Western
Australia—he is not out there for this state—he is out there
for the federal Labor government. That is what he does.
Several members interjected.
The
SPEAKER : Members!
Mr
C.J. BARNETT : Mr Speaker, he does not stand up for this state.
Several members interjected.
The
SPEAKER : Right. Premier.
Mr C.J. BARNETT : I
wish he would. Anyone who would pretend or wish to be Premier should stand up
for Western Australia, instead of delivering the messages from Canberra. He
should stand up for this state, like all Western Australians do.
I want to make a point because there is a critical little
play of two issues here, one of which is tax concessions for Darwin, when
Darwin has already succeeded in taking a major investment of about $30 billion
off Western Australia. Good luck to them, but bad luck for jobs, bad luck for
manufacturing in the Cockburn area—I know the member for Cockburn has
been speaking about that as recently as two days ago—and literally
thousands of jobs onshore in developing LNG, and all the opportunities for
skilled workers, employment and maintenance contracts going on. This is
critical, and there is a link between what Kevin Rudd announced today and what
is going on in Browse. I was surprised —
Mr D.J. Kelly : Now
it's Kevin's fault!
The SPEAKER :
Member for Bassendean!
Mr
C.J. BARNETT : The member for Bassendean is a union official. He should be
standing up for jobs in this state; if anyone should be, it should be him.
Several members interjected.
The SPEAKER :
Members!
Mr C.J. BARNETT :
People on this side are standing up for jobs in Western Australia, plus the
member for Cockburn. The member for Cockburn is the only person on the other
side who stands up for jobs and manufacturing in Western Australia.
Several members interjected.
The
SPEAKER : Member for Cannington!
Mr
C.J. BARNETT : I was surprised last Thursday to receive a letter addressed
to me, rather than the mines minister, from Hon Gary Gray, federal resources
minister. I was surprised, first, that the letter came from Gary Gray, a
federal minister, during the caretaker period.
Mr B.S. Wyatt :
That does not limit you guys, caretaker.
Mr
C.J. BARNETT : During a caretaker period.
The
SPEAKER : Member for Victoria Park!
Mr
C.J. BARNETT : There is only one federal politician I have discussed this
letter with, and that is the Prime Minister.
Several members interjected.
Mr C.J. BARNETT :
The other aspect is that it talks about the Browse field. In the letter from
Gary Gray —
Mr
M. McGowan : This is your distraction.
The
SPEAKER : Leader of the Opposition!
Mr
C.J. BARNETT : This is one of the biggest issues for Western Australia.
Mr
M. McGowan : A huge issue—if only you hadn't lost it.
The SPEAKER :
Leader of the Opposition!
Mr C.J. BARNETT :
The interjections just prove to me that the Labor Party will not stand up for
Western Australia, will not stand up for skilled workers and their jobs, and
will not stand up for the manufacturing industry.
Several members interjected.
The
SPEAKER : Okay; thank you very much. Member for Cannington, I call you to
order for the first time. We are making very little progress, and time is marching
on.
Mr
C.J. BARNETT : There are job losses throughout manufacturing in Western
Australia—probably less so here than elsewhere—and this is one
of the great opportunities that this country has to boost manufacturing and be
a major player in oil and gas; it is also a major issue to bring gas onshore
into the Western Australian and Australian economies. In the letter to me, Gary
Gray basically argues the case—as a minister in caretaker mode—that
Western Australia should give up its rights basically, and concede, as the
commonwealth has, and to remove all conditions that would bring any part or all
of that project onshore. I find that abysmal —
Mr
W.J. Johnston : That is not true!
Mr
C.J. BARNETT : — conduct by a resources minister, particularly for
someone who represents the manufacturing part of this state!
I will be very brief —
Several members interjected.
The SPEAKER :
Members!
Mr C.J. BARNETT : I
just wanted to mention that the point Minister Gray makes is that there are three
fields within the Browse project. Those three fields have, as estimated
currently, a total of 12.5 trillion cubic feet of gas. It is a huge project—world-scale.
One of those fields—Terosa—actually straddles commonwealth
waters and state waters, because Scott Reef is an island. Mr Gray goes on to
argue that across the whole the project the Western Australian share of the gas
is probably five per cent or less. Therefore, he argues, it is only five per
cent so give it away! Well, I will not give it away; five per cent of that gas—I
do not doubt his figure is right—is a huge amount of gas that could be
used in the Western Australian economy. I will quote one sentence of the
letter; this is what he says —
Mr W.J. Johnston :
You are not telling the truth!
Mr C.J. BARNETT :
Let us listen; I will quote it to the opposition.
Several members interjected.
Mr
C.J. BARNETT : I am quoting from my notes.
Several members interjected.
The
SPEAKER : Members!
Mr
C.J. BARNETT : I will quote a sentence from his letter, which reads,
according to my notes —
Development of the Browse fields
presents an exciting opportunity for Western Australia —
Listen —
to have the largest portfolio of
new floating facilities.
So, he sees it as a great achievement for Australia to have
the biggest portfolio of floating facilities! Where are the jobs? Where is the
gas for Western Australia? I think this is a serious issue, and I would say to
either Kevin Rudd or Tony Abbott, ''Look, developing the north is great.
Make tax concessions for people living there, company tax concessions, great,
but apply it right across northern Australia and include the Kimberley''—the
member for Kimberley should argue for that; I am sure she would—''include
the Kimberley in particular, and include northern Queensland.'' This is
discriminatory, and it could have severely adverse effects on the development
of the Kimberley and undo some of the good work that the Minister for Regional Development
and other ministers have done—undo it!
This is a critical issue, and I call on the Prime Minister—it
is a good policy idea—to include the Kimberley, and by all means
include his own state, northern Queensland.
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