Hon Bruce Donaldson raises concerns about the potential impact of the Boodarie Iron mine closure on Port Hedland. Hon Tom Stephens responds, focusing on BHP Billiton's efforts to reopen the plant safely and the potential for growth in the resources sector to offset any negative impacts.

AnsweredQoN 680Legislative Council
Asked
26 August 2004
Portfolio
Local Government and Regional Development

QuestionView source ↗

Given the present circumstances surrounding the future of the Boodarie Iron mine at Port Hedland, will the minister commence the development of a strategy to help alleviate the severe impact that would occur on the town of Port Hedland if BHP Billiton were to shut town the Boodarie Iron plant? Hon TOM STEPHENS

AnswerView source ↗

I have been thinking and talking about this issue. There are two parts to it. The first is to work through the process to support BHP Billiton’s work on whether it can reopen the plant safely. That question must be uppermost in everyone’s mind. Second, in the period the plant has not been operating, the company has conducted itself admirably in the way it has retained its permanent work force and deployed its employees into all levels of training strategies to ensure that they are well positioned to take up jobs at that plant once a decision is made to proceed with its reopening. Also, as a team, people have been looking at how to run this business as though it were the safest possible plant on the entire planet. They have been doing a lot of work. It is premature to speculate on the closure of Boodarie. Also, we have the fortuitous circumstance in that anyone with a skill in the resources sector, or elsewhere, is currently under enormous risk of being poached by employers anyway. Hon Bruce Donaldson: It’s happening. Hon TOM STEPHENS: People are being poached from all over the place. As members heard yesterday, Mr Forrest is extremely confident about the prospect for his Fortescue Metals Group operation through the town of Port Hedland. Mr Tipper and his crew from Hope Downs and Kumba Resources are anticipating being able to bring their issues to resolution by December. Unlike the scenario the member paints that the town is likely to face a downturn, it is more likely the task force we will need to establish for Port Hedland, regardless of the fate of Boodarie, will consider how to handle massive growth in Port Hedland long into the future. Companies all over the place have product that is under huge demand from China and elsewhere. My efforts and energies are aimed at supporting BHP and finding a way to operate that plant safely and with confidence in the first instance. As the member suggests, if for some reason that decision of closure were made, of course the Government would need to work with BHP Billiton and the wider community to tackle any issues that may arise. I think the number of full-time equivalent staff who are still there is around 300 or 400. Hon Derrick Tomlinson: It’s 350 to 400 unemployed who will be very encouraged by your optimism! Hon TOM STEPHENS: They are not unemployed. They are still working and being trained and skilled up. They will be the most well-trained employees in any operation anywhere in the world with the amount of professional development and training they have received since the shutdown. They are very skilled and talented BHP employees. I hope their future on this plant is assured once it is guaranteed that it can operate safely. That is a decision in the first instance for BHP Billiton. However, if for whatever reason, BHP Billiton makes a different decision, of course the State Government will be willing to respond. The task will be somewhat easier, as there is pressure on anyone with skills in the resource sector which is faced with a vast shortage of skilled people, and the pressure points on Port Hedland are not likely to come from a downturn in growth, but from ongoing growth.
Hon TOM STEPHENS replied: I have been thinking and talking about this issue. There are two parts to it. The first is to work through the process to support BHP Billiton’s work on whether it can reopen the plant safely. That question must be uppermost in everyone’s mind. Second, in the period the plant has not been operating, the company has conducted itself admirably in the way it has retained its permanent work force and deployed its employees into all levels of training strategies to ensure that they are well positioned to take up jobs at that plant once a decision is made to proceed with its reopening. Also, as a team, people have been looking at how to run this business as though it were the safest possible plant on the entire planet. They have been doing a lot of work. It is premature to speculate on the closure of Boodarie. Also, we have the fortuitous circumstance in that anyone with a skill in the resources sector, or elsewhere, is currently under enormous risk of being poached by employers anyway. Hon Bruce Donaldson: It’s happening. Hon TOM STEPHENS: People are being poached from all over the place. As members heard yesterday, Mr Forrest is extremely confident about the prospect for his Fortescue Metals Group operation through the town of Port Hedland. Mr Tipper and his crew from Hope Downs and Kumba Resources are anticipating being able to bring their issues to resolution by December. Unlike the scenario the member paints that the town is likely to face a downturn, it is more likely the task force we will need to establish for Port Hedland, regardless of the fate of Boodarie, will consider how to handle massive growth in Port Hedland long into the future. Companies all over the place have product that is under huge demand from China and elsewhere. My efforts and energies are aimed at supporting BHP and finding a way to operate that plant safely and with confidence in the first instance. As the member suggests, if for some reason that decision of closure were made, of course the Government would need to work with BHP Billiton and the wider community to tackle any issues that may arise. I think the number of full-time equivalent staff who are still there is around 300 or 400. Hon Derrick Tomlinson: It’s 350 to 400 unemployed who will be very encouraged by your optimism! Hon TOM STEPHENS: They are not unemployed. They are still working and being trained and skilled up. They will be the most well-trained employees in any operation anywhere in the world with the amount of professional development and training they have received since the shutdown. They are very skilled and talented BHP employees. I hope their future on this plant is assured once it is guaranteed that it can operate safely. That is a decision in the first instance for BHP Billiton. However, if for whatever reason, BHP Billiton makes a different decision, of course the State Government will be willing to respond. The task will be somewhat easier, as there is pressure on anyone with skills in the resource sector which is faced with a vast shortage of skilled people, and the pressure points on Port Hedland are not likely to come from a downturn in growth, but from ongoing growth.
I have been thinking and talking about this issue. There are two parts to it. The first is to work through the process to support BHP Billiton’s work on whether it can reopen the plant safely. That question must be uppermost in everyone’s mind. Second, in the period the plant has not been operating, the company has conducted itself admirably in the way it has retained its permanent work force and deployed its employees into all levels of training strategies to ensure that they are well positioned to take up jobs at that plant once a decision is made to proceed with its reopening. Also, as a team, people have been looking at how to run this business as though it were the safest possible plant on the entire planet. They have been doing a lot of work. It is premature to speculate on the closure of Boodarie. Also, we have the fortuitous circumstance in that anyone with a skill in the resources sector, or elsewhere, is currently under enormous risk of being poached by employers anyway. Hon Bruce Donaldson: It’s happening. Hon TOM STEPHENS: People are being poached from all over the place. As members heard yesterday, Mr Forrest is extremely confident about the prospect for his Fortescue Metals Group operation through the town of Port Hedland. Mr Tipper and his crew from Hope Downs and Kumba Resources are anticipating being able to bring their issues to resolution by December. Unlike the scenario the member paints that the town is likely to face a downturn, it is more likely the task force we will need to establish for Port Hedland, regardless of the fate of Boodarie, will consider how to handle massive growth in Port Hedland long into the future. Companies all over the place have product that is under huge demand from China and elsewhere. My efforts and energies are aimed at supporting BHP and finding a way to operate that plant safely and with confidence in the first instance. As the member suggests, if for some reason that decision of closure were made, of course the Government would need to work with BHP Billiton and the wider community to tackle any issues that may arise. I think the number of full-time equivalent staff who are still there is around 300 or 400. Hon Derrick Tomlinson: It’s 350 to 400 unemployed who will be very encouraged by your optimism! Hon TOM STEPHENS: They are not unemployed. They are still working and being trained and skilled up. They will be the most well-trained employees in any operation anywhere in the world with the amount of professional development and training they have received since the shutdown. They are very skilled and talented BHP employees. I hope their future on this plant is assured once it is guaranteed that it can operate safely. That is a decision in the first instance for BHP Billiton. However, if for whatever reason, BHP Billiton makes a different decision, of course the State Government will be willing to respond. The task will be somewhat easier, as there is pressure on anyone with skills in the resource sector which is faced with a vast shortage of skilled people, and the pressure points on Port Hedland are not likely to come from a downturn in growth, but from ongoing growth.
Hon Bruce Donaldson: It’s happening. Hon TOM STEPHENS: People are being poached from all over the place. As members heard yesterday, Mr Forrest is extremely confident about the prospect for his Fortescue Metals Group operation through the town of Port Hedland. Mr Tipper and his crew from Hope Downs and Kumba Resources are anticipating being able to bring their issues to resolution by December. Unlike the scenario the member paints that the town is likely to face a downturn, it is more likely the task force we will need to establish for Port Hedland, regardless of the fate of Boodarie, will consider how to handle massive growth in Port Hedland long into the future. Companies all over the place have product that is under huge demand from China and elsewhere. My efforts and energies are aimed at supporting BHP and finding a way to operate that plant safely and with confidence in the first instance. As the member suggests, if for some reason that decision of closure were made, of course the Government would need to work with BHP Billiton and the wider community to tackle any issues that may arise. I think the number of full-time equivalent staff who are still there is around 300 or 400. Hon Derrick Tomlinson: It’s 350 to 400 unemployed who will be very encouraged by your optimism! Hon TOM STEPHENS: They are not unemployed. They are still working and being trained and skilled up. They will be the most well-trained employees in any operation anywhere in the world with the amount of professional development and training they have received since the shutdown. They are very skilled and talented BHP employees. I hope their future on this plant is assured once it is guaranteed that it can operate safely. That is a decision in the first instance for BHP Billiton. However, if for whatever reason, BHP Billiton makes a different decision, of course the State Government will be willing to respond. The task will be somewhat easier, as there is pressure on anyone with skills in the resource sector which is faced with a vast shortage of skilled people, and the pressure points on Port Hedland are not likely to come from a downturn in growth, but from ongoing growth.
Hon TOM STEPHENS: People are being poached from all over the place. As members heard yesterday, Mr Forrest is extremely confident about the prospect for his Fortescue Metals Group operation through the town of Port Hedland. Mr Tipper and his crew from Hope Downs and Kumba Resources are anticipating being able to bring their issues to resolution by December. Unlike the scenario the member paints that the town is likely to face a downturn, it is more likely the task force we will need to establish for Port Hedland, regardless of the fate of Boodarie, will consider how to handle massive growth in Port Hedland long into the future. Companies all over the place have product that is under huge demand from China and elsewhere. My efforts and energies are aimed at supporting BHP and finding a way to operate that plant safely and with confidence in the first instance. As the member suggests, if for some reason that decision of closure were made, of course the Government would need to work with BHP Billiton and the wider community to tackle any issues that may arise. I think the number of full-time equivalent staff who are still there is around 300 or 400. Hon Derrick Tomlinson: It’s 350 to 400 unemployed who will be very encouraged by your optimism! Hon TOM STEPHENS: They are not unemployed. They are still working and being trained and skilled up. They will be the most well-trained employees in any operation anywhere in the world with the amount of professional development and training they have received since the shutdown. They are very skilled and talented BHP employees. I hope their future on this plant is assured once it is guaranteed that it can operate safely. That is a decision in the first instance for BHP Billiton. However, if for whatever reason, BHP Billiton makes a different decision, of course the State Government will be willing to respond. The task will be somewhat easier, as there is pressure on anyone with skills in the resource sector which is faced with a vast shortage of skilled people, and the pressure points on Port Hedland are not likely to come from a downturn in growth, but from ongoing growth.
Hon Derrick Tomlinson: It’s 350 to 400 unemployed who will be very encouraged by your optimism! Hon TOM STEPHENS: They are not unemployed. They are still working and being trained and skilled up. They will be the most well-trained employees in any operation anywhere in the world with the amount of professional development and training they have received since the shutdown. They are very skilled and talented BHP employees. I hope their future on this plant is assured once it is guaranteed that it can operate safely. That is a decision in the first instance for BHP Billiton. However, if for whatever reason, BHP Billiton makes a different decision, of course the State Government will be willing to respond. The task will be somewhat easier, as there is pressure on anyone with skills in the resource sector which is faced with a vast shortage of skilled people, and the pressure points on Port Hedland are not likely to come from a downturn in growth, but from ongoing growth.
Hon TOM STEPHENS: They are not unemployed. They are still working and being trained and skilled up. They will be the most well-trained employees in any operation anywhere in the world with the amount of professional development and training they have received since the shutdown. They are very skilled and talented BHP employees. I hope their future on this plant is assured once it is guaranteed that it can operate safely. That is a decision in the first instance for BHP Billiton. However, if for whatever reason, BHP Billiton makes a different decision, of course the State Government will be willing to respond. The task will be somewhat easier, as there is pressure on anyone with skills in the resource sector which is faced with a vast shortage of skilled people, and the pressure points on Port Hedland are not likely to come from a downturn in growth, but from ongoing growth.

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