❓ Barnett questions Brown about the collapse of the Methanex deal, focusing on when Brown knew of the doubts and what actions he took to secure the project. Brown's response blames the federal government's lack of funding for the scaled-down plant.
AnsweredQoN 1161Legislative Assembly
QuestionView source ↗
I refer the minister to the recent collapse of the deal with Methanex Australia Pty Ltd for a methanol plant on the Burrup Peninsula and to the Government’s previous announcement of the project on no less than six separate occasions, including on 9 June 2003 in which the minister stated - With . . . Methanex’s ongoing commitment, we are close to securing an extended period of economic and employment growth for WA. (1) When did the minister become aware that the Methanex proposal was in doubt? (2) What negotiations did the minister have with the company and the federal Government, and what actions did he take prior to the company’s decision to not proceed to satisfy himself that nothing further could be done to secure that project for Western Australia? Mr C.M. BROWN
AnswerView source ↗
(1)-(2) The decision of Methanex Corporation was made on either 29 or 30 September. It was made in Vancouver; therefore, I think it was 29 September in Vancouver and early on 30 September here. The Methanex board needed to consider some issues. One of the key issues related to the funding that would be made available by the federal Government. As members know, the federal Government offered Methanex $110 million of assistance when it planned to locate in Darwin, and it offered it $85 million when it planned to locate in the Burrup Peninsula. The federal Government’s offer to Methanex of $85 million related to a two-million-tonne plant. Some months before that, Methanex had decided, and made public, that it could not get a two-million-tonne plant to work. However, it scaled down the project, and believed that it could get a 1.3-million-tonne plant to work. The federal Government did not make assistance available for the 1.3-million-tonne plant. I met personally with Minister Macfarlane on 24 or 25 September. I might be out by a day. Mrs C.L. Edwardes: Just before the footy. Mr C.M. BROWN: Just before the decision of the Methanex board. Minister Macfarlane indicated to me at that time that the federal Government was still in the process of considering what offer it would make to Methanex. My understanding of the position is that, at the time the Methanex board met in Vancouver on 29 September, there was no offer from the federal Government before it.
(2) What negotiations did the minister have with the company and the federal Government, and what actions did he take prior to the company’s decision to not proceed to satisfy himself that nothing further could be done to secure that project for Western Australia? Mr C.M. BROWN replied: (1)-(2) The decision of Methanex Corporation was made on either 29 or 30 September. It was made in Vancouver; therefore, I think it was 29 September in Vancouver and early on 30 September here. The Methanex board needed to consider some issues. One of the key issues related to the funding that would be made available by the federal Government. As members know, the federal Government offered Methanex $110 million of assistance when it planned to locate in Darwin, and it offered it $85 million when it planned to locate in the Burrup Peninsula. The federal Government’s offer to Methanex of $85 million related to a two-million-tonne plant. Some months before that, Methanex had decided, and made public, that it could not get a two-million-tonne plant to work. However, it scaled down the project, and believed that it could get a 1.3-million-tonne plant to work. The federal Government did not make assistance available for the 1.3-million-tonne plant. I met personally with Minister Macfarlane on 24 or 25 September. I might be out by a day. Mrs C.L. Edwardes: Just before the footy. Mr C.M. BROWN: Just before the decision of the Methanex board. Minister Macfarlane indicated to me at that time that the federal Government was still in the process of considering what offer it would make to Methanex. My understanding of the position is that, at the time the Methanex board met in Vancouver on 29 September, there was no offer from the federal Government before it.
Mr C.M. BROWN replied: (1)-(2) The decision of Methanex Corporation was made on either 29 or 30 September. It was made in Vancouver; therefore, I think it was 29 September in Vancouver and early on 30 September here. The Methanex board needed to consider some issues. One of the key issues related to the funding that would be made available by the federal Government. As members know, the federal Government offered Methanex $110 million of assistance when it planned to locate in Darwin, and it offered it $85 million when it planned to locate in the Burrup Peninsula. The federal Government’s offer to Methanex of $85 million related to a two-million-tonne plant. Some months before that, Methanex had decided, and made public, that it could not get a two-million-tonne plant to work. However, it scaled down the project, and believed that it could get a 1.3-million-tonne plant to work. The federal Government did not make assistance available for the 1.3-million-tonne plant. I met personally with Minister Macfarlane on 24 or 25 September. I might be out by a day. Mrs C.L. Edwardes: Just before the footy. Mr C.M. BROWN: Just before the decision of the Methanex board. Minister Macfarlane indicated to me at that time that the federal Government was still in the process of considering what offer it would make to Methanex. My understanding of the position is that, at the time the Methanex board met in Vancouver on 29 September, there was no offer from the federal Government before it.
(1)-(2) The decision of Methanex Corporation was made on either 29 or 30 September. It was made in Vancouver; therefore, I think it was 29 September in Vancouver and early on 30 September here. The Methanex board needed to consider some issues. One of the key issues related to the funding that would be made available by the federal Government. As members know, the federal Government offered Methanex $110 million of assistance when it planned to locate in Darwin, and it offered it $85 million when it planned to locate in the Burrup Peninsula. The federal Government’s offer to Methanex of $85 million related to a two-million-tonne plant. Some months before that, Methanex had decided, and made public, that it could not get a two-million-tonne plant to work. However, it scaled down the project, and believed that it could get a 1.3-million-tonne plant to work. The federal Government did not make assistance available for the 1.3-million-tonne plant. I met personally with Minister Macfarlane on 24 or 25 September. I might be out by a day. Mrs C.L. Edwardes: Just before the footy. Mr C.M. BROWN: Just before the decision of the Methanex board. Minister Macfarlane indicated to me at that time that the federal Government was still in the process of considering what offer it would make to Methanex. My understanding of the position is that, at the time the Methanex board met in Vancouver on 29 September, there was no offer from the federal Government before it.
Mrs C.L. Edwardes: Just before the footy. Mr C.M. BROWN: Just before the decision of the Methanex board. Minister Macfarlane indicated to me at that time that the federal Government was still in the process of considering what offer it would make to Methanex. My understanding of the position is that, at the time the Methanex board met in Vancouver on 29 September, there was no offer from the federal Government before it.
Mr C.M. BROWN: Just before the decision of the Methanex board. Minister Macfarlane indicated to me at that time that the federal Government was still in the process of considering what offer it would make to Methanex. My understanding of the position is that, at the time the Methanex board met in Vancouver on 29 September, there was no offer from the federal Government before it.
(2) What negotiations did the minister have with the company and the federal Government, and what actions did he take prior to the company’s decision to not proceed to satisfy himself that nothing further could be done to secure that project for Western Australia? Mr C.M. BROWN replied: (1)-(2) The decision of Methanex Corporation was made on either 29 or 30 September. It was made in Vancouver; therefore, I think it was 29 September in Vancouver and early on 30 September here. The Methanex board needed to consider some issues. One of the key issues related to the funding that would be made available by the federal Government. As members know, the federal Government offered Methanex $110 million of assistance when it planned to locate in Darwin, and it offered it $85 million when it planned to locate in the Burrup Peninsula. The federal Government’s offer to Methanex of $85 million related to a two-million-tonne plant. Some months before that, Methanex had decided, and made public, that it could not get a two-million-tonne plant to work. However, it scaled down the project, and believed that it could get a 1.3-million-tonne plant to work. The federal Government did not make assistance available for the 1.3-million-tonne plant. I met personally with Minister Macfarlane on 24 or 25 September. I might be out by a day. Mrs C.L. Edwardes: Just before the footy. Mr C.M. BROWN: Just before the decision of the Methanex board. Minister Macfarlane indicated to me at that time that the federal Government was still in the process of considering what offer it would make to Methanex. My understanding of the position is that, at the time the Methanex board met in Vancouver on 29 September, there was no offer from the federal Government before it.
Mr C.M. BROWN replied: (1)-(2) The decision of Methanex Corporation was made on either 29 or 30 September. It was made in Vancouver; therefore, I think it was 29 September in Vancouver and early on 30 September here. The Methanex board needed to consider some issues. One of the key issues related to the funding that would be made available by the federal Government. As members know, the federal Government offered Methanex $110 million of assistance when it planned to locate in Darwin, and it offered it $85 million when it planned to locate in the Burrup Peninsula. The federal Government’s offer to Methanex of $85 million related to a two-million-tonne plant. Some months before that, Methanex had decided, and made public, that it could not get a two-million-tonne plant to work. However, it scaled down the project, and believed that it could get a 1.3-million-tonne plant to work. The federal Government did not make assistance available for the 1.3-million-tonne plant. I met personally with Minister Macfarlane on 24 or 25 September. I might be out by a day. Mrs C.L. Edwardes: Just before the footy. Mr C.M. BROWN: Just before the decision of the Methanex board. Minister Macfarlane indicated to me at that time that the federal Government was still in the process of considering what offer it would make to Methanex. My understanding of the position is that, at the time the Methanex board met in Vancouver on 29 September, there was no offer from the federal Government before it.
(1)-(2) The decision of Methanex Corporation was made on either 29 or 30 September. It was made in Vancouver; therefore, I think it was 29 September in Vancouver and early on 30 September here. The Methanex board needed to consider some issues. One of the key issues related to the funding that would be made available by the federal Government. As members know, the federal Government offered Methanex $110 million of assistance when it planned to locate in Darwin, and it offered it $85 million when it planned to locate in the Burrup Peninsula. The federal Government’s offer to Methanex of $85 million related to a two-million-tonne plant. Some months before that, Methanex had decided, and made public, that it could not get a two-million-tonne plant to work. However, it scaled down the project, and believed that it could get a 1.3-million-tonne plant to work. The federal Government did not make assistance available for the 1.3-million-tonne plant. I met personally with Minister Macfarlane on 24 or 25 September. I might be out by a day. Mrs C.L. Edwardes: Just before the footy. Mr C.M. BROWN: Just before the decision of the Methanex board. Minister Macfarlane indicated to me at that time that the federal Government was still in the process of considering what offer it would make to Methanex. My understanding of the position is that, at the time the Methanex board met in Vancouver on 29 September, there was no offer from the federal Government before it.
Mrs C.L. Edwardes: Just before the footy. Mr C.M. BROWN: Just before the decision of the Methanex board. Minister Macfarlane indicated to me at that time that the federal Government was still in the process of considering what offer it would make to Methanex. My understanding of the position is that, at the time the Methanex board met in Vancouver on 29 September, there was no offer from the federal Government before it.
Mr C.M. BROWN: Just before the decision of the Methanex board. Minister Macfarlane indicated to me at that time that the federal Government was still in the process of considering what offer it would make to Methanex. My understanding of the position is that, at the time the Methanex board met in Vancouver on 29 September, there was no offer from the federal Government before it.
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