❓ The Premier outlines how the government resolved a royalty dispute with BHP, securing $250 million for WA, allocated to a new women's and maternity hospital and upgrades to schools and hospitals in the Pilbara.
AnsweredQoN 572Legislative Assembly
QuestionView source ↗
ROYALTIES — BHP
572. Ms J.M. FREEMAN to the Premier:
I refer to the recent dispute with
BHP about royalty deductions. Can the Premier outline to the house how the
approach taken by the McGowan Labor government to resolve this dispute has
secured significant funding for health and education in Western Australia,
including a commitment towards a much-needed new women's and maternity
hospital?
572. Ms J.M. FREEMAN to the Premier:
I refer to the recent dispute with
BHP about royalty deductions. Can the Premier outline to the house how the
approach taken by the McGowan Labor government to resolve this dispute has
secured significant funding for health and education in Western Australia,
including a commitment towards a much-needed new women's and maternity
hospital?
AnswerView source ↗
I thank the member for the
question. In late June, the state government resolved the dispute with BHP over
royalty deductions. There was obviously a difference of views and we worked
through those matters with the company constructively over the course of at
least a year. I would like to thank the great work of the staff in the
Department of Mines, Industry Regulation and Safety. The minister and I visited
to thank those staff for their excellent work in identifying that there was a difference
of view about royalty deductions. That resulted in a very successful outcome in
which the state secured $250 million. That money has been paid to Western Australia
by BHP. I would like to thank BHP for the constructive way it went about that
matter with the state government. We did not engage in a public slanging match
or an attacking match; we did not do any of that sort of thing. We did not
engage in abuse towards the company; we just
worked constructively with it and negotiated a great outcome in good faith. We avoided lengthy and expensive legal proceedings, which was always the pathway
that could have occurred. We secured $250 million
for Western Australia. I understand that that money is entirely exempt from GST
redistribution . Of that money we secured, $230 million will go towards
the replacement of King Edward Memorial Hospital for Women—a hospital
for women and babies; a new maternity hospital. The existing hospital is old.
We have already allocated $3.3 million for planning a new maternity hospital on
the QEII site. We now have a down payment of a very significant amount. As
members will be aware, the proceeds from the TAB sale that are not going
towards the racing industry will go towards that new women's and babies
hospital as well. We are hopeful that we will have, on top of that $230 million,
a very significant amount of money towards that project shortly.
As part of the settlement, we have
also delivered for the Pilbara. I would like to thank the member for Pilbara
for his advocacy. We secured $15 million towards Hedland Senior High School
upgrades. I visited Hedland Senior High School last week. I had a look at some
of the areas that will be improved as a consequence of this spend. We also put
$5 million towards additional upgrades to Newman Hospital. Next year we will be
starting construction of the new Newman Hospital. The total will now be more
than $50 million towards that new hospital.
Via the government's
actions, we have secured $250 million towards an important women's and
babies hospital and schools in the Pilbara, and we have negotiated a good
outcome without acrimony and avoided legal action. We have done it to secure
the best interests of Western Australia, particularly the people of the Pilbara
and women and babies in our state.
question. In late June, the state government resolved the dispute with BHP over
royalty deductions. There was obviously a difference of views and we worked
through those matters with the company constructively over the course of at
least a year. I would like to thank the great work of the staff in the
Department of Mines, Industry Regulation and Safety. The minister and I visited
to thank those staff for their excellent work in identifying that there was a difference
of view about royalty deductions. That resulted in a very successful outcome in
which the state secured $250 million. That money has been paid to Western Australia
by BHP. I would like to thank BHP for the constructive way it went about that
matter with the state government. We did not engage in a public slanging match
or an attacking match; we did not do any of that sort of thing. We did not
engage in abuse towards the company; we just
worked constructively with it and negotiated a great outcome in good faith. We avoided lengthy and expensive legal proceedings, which was always the pathway
that could have occurred. We secured $250 million
for Western Australia. I understand that that money is entirely exempt from GST
redistribution . Of that money we secured, $230 million will go towards
the replacement of King Edward Memorial Hospital for Women—a hospital
for women and babies; a new maternity hospital. The existing hospital is old.
We have already allocated $3.3 million for planning a new maternity hospital on
the QEII site. We now have a down payment of a very significant amount. As
members will be aware, the proceeds from the TAB sale that are not going
towards the racing industry will go towards that new women's and babies
hospital as well. We are hopeful that we will have, on top of that $230 million,
a very significant amount of money towards that project shortly.
As part of the settlement, we have
also delivered for the Pilbara. I would like to thank the member for Pilbara
for his advocacy. We secured $15 million towards Hedland Senior High School
upgrades. I visited Hedland Senior High School last week. I had a look at some
of the areas that will be improved as a consequence of this spend. We also put
$5 million towards additional upgrades to Newman Hospital. Next year we will be
starting construction of the new Newman Hospital. The total will now be more
than $50 million towards that new hospital.
Via the government's
actions, we have secured $250 million towards an important women's and
babies hospital and schools in the Pilbara, and we have negotiated a good
outcome without acrimony and avoided legal action. We have done it to secure
the best interests of Western Australia, particularly the people of the Pilbara
and women and babies in our state.
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