❓ Opposition questions the Premier's stance on the sale of Premier Coal to Yancoal, a Chinese-owned company, given his previous support for Chinese investment. The Premier defends his position, citing concerns about foreign ownership of strategic assets and the need to protect the state's energy supply.
AnsweredQoN 644Legislative Assembly
QuestionView source ↗
PREMIER COAL — SALE TO YANCOAL
I refer to Wesfarmers’ sale of its Premier Coal division to the Chinese-owned Yancoal, and the Premier’s expression of hostility to this. (1) Why did the Premier boast about his memorandum of understanding on Chinese investment if this is his attitude? (2) Where in the MOU does it suggest that Chinese investment should be limited to greenfields projects? (3) Does the Premier’s MOU not encourage deepening investment by Chinese companies in resources and energy projects in Western Australia? (4) On what day was the Premier first advised of these negotiations and what view did the Premier express at the time? Mr C.J. BARNETT
I refer to Wesfarmers’ sale of its Premier Coal division to the Chinese-owned Yancoal, and the Premier’s expression of hostility to this. (1) Why did the Premier boast about his memorandum of understanding on Chinese investment if this is his attitude? (2) Where in the MOU does it suggest that Chinese investment should be limited to greenfields projects? (3) Does the Premier’s MOU not encourage deepening investment by Chinese companies in resources and energy projects in Western Australia? (4) On what day was the Premier first advised of these negotiations and what view did the Premier express at the time? Mr C.J. BARNETT
AnswerView source ↗
(1)–(4) It was announced overnight that Yancoal, or its Australian subsidiary, had negotiated with Wesfarmers for the purchase of the Premier Coal project. Wesfarmers basically had that project on the market for several months and has been carrying out briefings and making all the documentation available so that companies can undertake due diligence. At the same time, discussions were going on between Verve and Wesfarmers about the coal contract with the state government and about issues of security of supply of coal and the price of coal. The Department of State Development was also involved in that, as was I, perhaps not so directly but also participating. This is an important issue. When people think of the investment coming into Australia from China, most of us, including me, typically think of investment in new development projects rather than simply the change of ownership of an existing project. Mr M. McGowan : That’s not what this says. Mr C.J. BARNETT : The member should tell me what the issue is. Mr E.S. Ripper : Do you apply that as a rule to any other foreign projects? Mr C.J. BARNETT : I am telling the Leader of the Opposition about my attitude to it, if he is interested. Ms M.M. Quirk : Big on the attitude. Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
(1) Why did the Premier boast about his memorandum of understanding on Chinese investment if this is his attitude? (2) Where in the MOU does it suggest that Chinese investment should be limited to greenfields projects? (3) Does the Premier’s MOU not encourage deepening investment by Chinese companies in resources and energy projects in Western Australia? (4) On what day was the Premier first advised of these negotiations and what view did the Premier express at the time? Mr C.J. BARNETT replied: (1)–(4) It was announced overnight that Yancoal, or its Australian subsidiary, had negotiated with Wesfarmers for the purchase of the Premier Coal project. Wesfarmers basically had that project on the market for several months and has been carrying out briefings and making all the documentation available so that companies can undertake due diligence. At the same time, discussions were going on between Verve and Wesfarmers about the coal contract with the state government and about issues of security of supply of coal and the price of coal. The Department of State Development was also involved in that, as was I, perhaps not so directly but also participating. This is an important issue. When people think of the investment coming into Australia from China, most of us, including me, typically think of investment in new development projects rather than simply the change of ownership of an existing project. Mr M. McGowan : That’s not what this says. Mr C.J. BARNETT : The member should tell me what the issue is. Mr E.S. Ripper : Do you apply that as a rule to any other foreign projects? Mr C.J. BARNETT : I am telling the Leader of the Opposition about my attitude to it, if he is interested. Ms M.M. Quirk : Big on the attitude. Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
(2) Where in the MOU does it suggest that Chinese investment should be limited to greenfields projects? (3) Does the Premier’s MOU not encourage deepening investment by Chinese companies in resources and energy projects in Western Australia? (4) On what day was the Premier first advised of these negotiations and what view did the Premier express at the time? Mr C.J. BARNETT replied: (1)–(4) It was announced overnight that Yancoal, or its Australian subsidiary, had negotiated with Wesfarmers for the purchase of the Premier Coal project. Wesfarmers basically had that project on the market for several months and has been carrying out briefings and making all the documentation available so that companies can undertake due diligence. At the same time, discussions were going on between Verve and Wesfarmers about the coal contract with the state government and about issues of security of supply of coal and the price of coal. The Department of State Development was also involved in that, as was I, perhaps not so directly but also participating. This is an important issue. When people think of the investment coming into Australia from China, most of us, including me, typically think of investment in new development projects rather than simply the change of ownership of an existing project. Mr M. McGowan : That’s not what this says. Mr C.J. BARNETT : The member should tell me what the issue is. Mr E.S. Ripper : Do you apply that as a rule to any other foreign projects? Mr C.J. BARNETT : I am telling the Leader of the Opposition about my attitude to it, if he is interested. Ms M.M. Quirk : Big on the attitude. Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
(3) Does the Premier’s MOU not encourage deepening investment by Chinese companies in resources and energy projects in Western Australia? (4) On what day was the Premier first advised of these negotiations and what view did the Premier express at the time? Mr C.J. BARNETT replied: (1)–(4) It was announced overnight that Yancoal, or its Australian subsidiary, had negotiated with Wesfarmers for the purchase of the Premier Coal project. Wesfarmers basically had that project on the market for several months and has been carrying out briefings and making all the documentation available so that companies can undertake due diligence. At the same time, discussions were going on between Verve and Wesfarmers about the coal contract with the state government and about issues of security of supply of coal and the price of coal. The Department of State Development was also involved in that, as was I, perhaps not so directly but also participating. This is an important issue. When people think of the investment coming into Australia from China, most of us, including me, typically think of investment in new development projects rather than simply the change of ownership of an existing project. Mr M. McGowan : That’s not what this says. Mr C.J. BARNETT : The member should tell me what the issue is. Mr E.S. Ripper : Do you apply that as a rule to any other foreign projects? Mr C.J. BARNETT : I am telling the Leader of the Opposition about my attitude to it, if he is interested. Ms M.M. Quirk : Big on the attitude. Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
(4) On what day was the Premier first advised of these negotiations and what view did the Premier express at the time? Mr C.J. BARNETT replied: (1)–(4) It was announced overnight that Yancoal, or its Australian subsidiary, had negotiated with Wesfarmers for the purchase of the Premier Coal project. Wesfarmers basically had that project on the market for several months and has been carrying out briefings and making all the documentation available so that companies can undertake due diligence. At the same time, discussions were going on between Verve and Wesfarmers about the coal contract with the state government and about issues of security of supply of coal and the price of coal. The Department of State Development was also involved in that, as was I, perhaps not so directly but also participating. This is an important issue. When people think of the investment coming into Australia from China, most of us, including me, typically think of investment in new development projects rather than simply the change of ownership of an existing project. Mr M. McGowan : That’s not what this says. Mr C.J. BARNETT : The member should tell me what the issue is. Mr E.S. Ripper : Do you apply that as a rule to any other foreign projects? Mr C.J. BARNETT : I am telling the Leader of the Opposition about my attitude to it, if he is interested. Ms M.M. Quirk : Big on the attitude. Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT replied: (1)–(4) It was announced overnight that Yancoal, or its Australian subsidiary, had negotiated with Wesfarmers for the purchase of the Premier Coal project. Wesfarmers basically had that project on the market for several months and has been carrying out briefings and making all the documentation available so that companies can undertake due diligence. At the same time, discussions were going on between Verve and Wesfarmers about the coal contract with the state government and about issues of security of supply of coal and the price of coal. The Department of State Development was also involved in that, as was I, perhaps not so directly but also participating. This is an important issue. When people think of the investment coming into Australia from China, most of us, including me, typically think of investment in new development projects rather than simply the change of ownership of an existing project. Mr M. McGowan : That’s not what this says. Mr C.J. BARNETT : The member should tell me what the issue is. Mr E.S. Ripper : Do you apply that as a rule to any other foreign projects? Mr C.J. BARNETT : I am telling the Leader of the Opposition about my attitude to it, if he is interested. Ms M.M. Quirk : Big on the attitude. Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
(1)–(4) It was announced overnight that Yancoal, or its Australian subsidiary, had negotiated with Wesfarmers for the purchase of the Premier Coal project. Wesfarmers basically had that project on the market for several months and has been carrying out briefings and making all the documentation available so that companies can undertake due diligence. At the same time, discussions were going on between Verve and Wesfarmers about the coal contract with the state government and about issues of security of supply of coal and the price of coal. The Department of State Development was also involved in that, as was I, perhaps not so directly but also participating. This is an important issue. When people think of the investment coming into Australia from China, most of us, including me, typically think of investment in new development projects rather than simply the change of ownership of an existing project. Mr M. McGowan : That’s not what this says. Mr C.J. BARNETT : The member should tell me what the issue is. Mr E.S. Ripper : Do you apply that as a rule to any other foreign projects? Mr C.J. BARNETT : I am telling the Leader of the Opposition about my attitude to it, if he is interested. Ms M.M. Quirk : Big on the attitude. Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr M. McGowan : That’s not what this says. Mr C.J. BARNETT : The member should tell me what the issue is. Mr E.S. Ripper : Do you apply that as a rule to any other foreign projects? Mr C.J. BARNETT : I am telling the Leader of the Opposition about my attitude to it, if he is interested. Ms M.M. Quirk : Big on the attitude. Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : The member should tell me what the issue is. Mr E.S. Ripper : Do you apply that as a rule to any other foreign projects? Mr C.J. BARNETT : I am telling the Leader of the Opposition about my attitude to it, if he is interested. Ms M.M. Quirk : Big on the attitude. Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr E.S. Ripper : Do you apply that as a rule to any other foreign projects? Mr C.J. BARNETT : I am telling the Leader of the Opposition about my attitude to it, if he is interested. Ms M.M. Quirk : Big on the attitude. Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : I am telling the Leader of the Opposition about my attitude to it, if he is interested. Ms M.M. Quirk : Big on the attitude. Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Ms M.M. Quirk : Big on the attitude. Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
(1) Why did the Premier boast about his memorandum of understanding on Chinese investment if this is his attitude? (2) Where in the MOU does it suggest that Chinese investment should be limited to greenfields projects? (3) Does the Premier’s MOU not encourage deepening investment by Chinese companies in resources and energy projects in Western Australia? (4) On what day was the Premier first advised of these negotiations and what view did the Premier express at the time? Mr C.J. BARNETT replied: (1)–(4) It was announced overnight that Yancoal, or its Australian subsidiary, had negotiated with Wesfarmers for the purchase of the Premier Coal project. Wesfarmers basically had that project on the market for several months and has been carrying out briefings and making all the documentation available so that companies can undertake due diligence. At the same time, discussions were going on between Verve and Wesfarmers about the coal contract with the state government and about issues of security of supply of coal and the price of coal. The Department of State Development was also involved in that, as was I, perhaps not so directly but also participating. This is an important issue. When people think of the investment coming into Australia from China, most of us, including me, typically think of investment in new development projects rather than simply the change of ownership of an existing project. Mr M. McGowan : That’s not what this says. Mr C.J. BARNETT : The member should tell me what the issue is. Mr E.S. Ripper : Do you apply that as a rule to any other foreign projects? Mr C.J. BARNETT : I am telling the Leader of the Opposition about my attitude to it, if he is interested. Ms M.M. Quirk : Big on the attitude. Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
(2) Where in the MOU does it suggest that Chinese investment should be limited to greenfields projects? (3) Does the Premier’s MOU not encourage deepening investment by Chinese companies in resources and energy projects in Western Australia? (4) On what day was the Premier first advised of these negotiations and what view did the Premier express at the time? Mr C.J. BARNETT replied: (1)–(4) It was announced overnight that Yancoal, or its Australian subsidiary, had negotiated with Wesfarmers for the purchase of the Premier Coal project. Wesfarmers basically had that project on the market for several months and has been carrying out briefings and making all the documentation available so that companies can undertake due diligence. At the same time, discussions were going on between Verve and Wesfarmers about the coal contract with the state government and about issues of security of supply of coal and the price of coal. The Department of State Development was also involved in that, as was I, perhaps not so directly but also participating. This is an important issue. When people think of the investment coming into Australia from China, most of us, including me, typically think of investment in new development projects rather than simply the change of ownership of an existing project. Mr M. McGowan : That’s not what this says. Mr C.J. BARNETT : The member should tell me what the issue is. Mr E.S. Ripper : Do you apply that as a rule to any other foreign projects? Mr C.J. BARNETT : I am telling the Leader of the Opposition about my attitude to it, if he is interested. Ms M.M. Quirk : Big on the attitude. Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
(3) Does the Premier’s MOU not encourage deepening investment by Chinese companies in resources and energy projects in Western Australia? (4) On what day was the Premier first advised of these negotiations and what view did the Premier express at the time? Mr C.J. BARNETT replied: (1)–(4) It was announced overnight that Yancoal, or its Australian subsidiary, had negotiated with Wesfarmers for the purchase of the Premier Coal project. Wesfarmers basically had that project on the market for several months and has been carrying out briefings and making all the documentation available so that companies can undertake due diligence. At the same time, discussions were going on between Verve and Wesfarmers about the coal contract with the state government and about issues of security of supply of coal and the price of coal. The Department of State Development was also involved in that, as was I, perhaps not so directly but also participating. This is an important issue. When people think of the investment coming into Australia from China, most of us, including me, typically think of investment in new development projects rather than simply the change of ownership of an existing project. Mr M. McGowan : That’s not what this says. Mr C.J. BARNETT : The member should tell me what the issue is. Mr E.S. Ripper : Do you apply that as a rule to any other foreign projects? Mr C.J. BARNETT : I am telling the Leader of the Opposition about my attitude to it, if he is interested. Ms M.M. Quirk : Big on the attitude. Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
(4) On what day was the Premier first advised of these negotiations and what view did the Premier express at the time? Mr C.J. BARNETT replied: (1)–(4) It was announced overnight that Yancoal, or its Australian subsidiary, had negotiated with Wesfarmers for the purchase of the Premier Coal project. Wesfarmers basically had that project on the market for several months and has been carrying out briefings and making all the documentation available so that companies can undertake due diligence. At the same time, discussions were going on between Verve and Wesfarmers about the coal contract with the state government and about issues of security of supply of coal and the price of coal. The Department of State Development was also involved in that, as was I, perhaps not so directly but also participating. This is an important issue. When people think of the investment coming into Australia from China, most of us, including me, typically think of investment in new development projects rather than simply the change of ownership of an existing project. Mr M. McGowan : That’s not what this says. Mr C.J. BARNETT : The member should tell me what the issue is. Mr E.S. Ripper : Do you apply that as a rule to any other foreign projects? Mr C.J. BARNETT : I am telling the Leader of the Opposition about my attitude to it, if he is interested. Ms M.M. Quirk : Big on the attitude. Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT replied: (1)–(4) It was announced overnight that Yancoal, or its Australian subsidiary, had negotiated with Wesfarmers for the purchase of the Premier Coal project. Wesfarmers basically had that project on the market for several months and has been carrying out briefings and making all the documentation available so that companies can undertake due diligence. At the same time, discussions were going on between Verve and Wesfarmers about the coal contract with the state government and about issues of security of supply of coal and the price of coal. The Department of State Development was also involved in that, as was I, perhaps not so directly but also participating. This is an important issue. When people think of the investment coming into Australia from China, most of us, including me, typically think of investment in new development projects rather than simply the change of ownership of an existing project. Mr M. McGowan : That’s not what this says. Mr C.J. BARNETT : The member should tell me what the issue is. Mr E.S. Ripper : Do you apply that as a rule to any other foreign projects? Mr C.J. BARNETT : I am telling the Leader of the Opposition about my attitude to it, if he is interested. Ms M.M. Quirk : Big on the attitude. Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
(1)–(4) It was announced overnight that Yancoal, or its Australian subsidiary, had negotiated with Wesfarmers for the purchase of the Premier Coal project. Wesfarmers basically had that project on the market for several months and has been carrying out briefings and making all the documentation available so that companies can undertake due diligence. At the same time, discussions were going on between Verve and Wesfarmers about the coal contract with the state government and about issues of security of supply of coal and the price of coal. The Department of State Development was also involved in that, as was I, perhaps not so directly but also participating. This is an important issue. When people think of the investment coming into Australia from China, most of us, including me, typically think of investment in new development projects rather than simply the change of ownership of an existing project. Mr M. McGowan : That’s not what this says. Mr C.J. BARNETT : The member should tell me what the issue is. Mr E.S. Ripper : Do you apply that as a rule to any other foreign projects? Mr C.J. BARNETT : I am telling the Leader of the Opposition about my attitude to it, if he is interested. Ms M.M. Quirk : Big on the attitude. Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr M. McGowan : That’s not what this says. Mr C.J. BARNETT : The member should tell me what the issue is. Mr E.S. Ripper : Do you apply that as a rule to any other foreign projects? Mr C.J. BARNETT : I am telling the Leader of the Opposition about my attitude to it, if he is interested. Ms M.M. Quirk : Big on the attitude. Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : The member should tell me what the issue is. Mr E.S. Ripper : Do you apply that as a rule to any other foreign projects? Mr C.J. BARNETT : I am telling the Leader of the Opposition about my attitude to it, if he is interested. Ms M.M. Quirk : Big on the attitude. Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr E.S. Ripper : Do you apply that as a rule to any other foreign projects? Mr C.J. BARNETT : I am telling the Leader of the Opposition about my attitude to it, if he is interested. Ms M.M. Quirk : Big on the attitude. Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : I am telling the Leader of the Opposition about my attitude to it, if he is interested. Ms M.M. Quirk : Big on the attitude. Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Ms M.M. Quirk : Big on the attitude. Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : I think the member for Collie–Preston understands how serious this issue is. Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Ms M.M. Quirk : We all do. Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : I do not know that members opposite do. It means that over the course of this year, so far, there is now overseas ownership of essentially the Collie coal basin. While Western Australia is producing 60 per cent of its energy from natural gas, on the south west grid, it is the other way around—about 60 per cent is produced using coal. Both those coal projects are covered by state agreements. Both those agreements make it very clear that this is regarded as a strategic asset for Western Australia to maintain continuity of energy supplies in this state. They also make it very clear that if the Indian or Chinese group wishes to export coal, they can do so only with the approval of the responsible minister — Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr E.S. Ripper : So a lot rests on the strength of our regulatory regime. Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : — which is the Minister for State Development, who happens to be me. I am just making the point that I hold that portfolio and those safeguards are in place. I am concerned. A long-term coal contract was negotiated during the time of the Labor government and, to some extent, it is probably too good. Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr E.S. Ripper : It helps protect us though, doesn’t it? Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : Yes, it does. We have made it very clear to Yancoal and Lanco that we require that the contract be honoured in full. That will be a key issue before the Foreign Investment Review Board. I do not prejudge Yancoal. If it secures this project—this investment—I hope it operates it well. It has given its assurances so far that it is primarily interested in the domestic market rather than export sales. The state has been working on this whole issue ever since the company Griffin went into administration. Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr M. McGowan : When were you told about this? Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : I was told about it last night. Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr E.S. Ripper : You were told about the negotiations. Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : I am not privy to Wesfarmers’ negotiations with potential buyers. The head of Wesfarmers rang me last night to inform me that it had concluded this negotiation with Yancoal. Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr M. McGowan : But you must have known about it before that. Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : No, I did not, and I can assure the member that neither did Verve. Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr E.S. Ripper : Are you saying you didn’t know they were negotiating with Yancoal last week? Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : No, I did not say that at all. I said that there were a number of potential bidders and some of those, including Yancoal, had sought briefings from State Development on the nature of the agreement act and the like. We were doing that. I stress that at the same time Verve had been in discussions with Wesfarmers about the contract and, indeed, the coal resource itself for some time. I was somewhat concerned—I remain somewhat concerned today—that Wesfarmers had announced this decision when negotiations were continuing with Verve. However, that is a decision Wesfarmers has taken. We will take Yancoal on merit if it gets FIRB approval. We will certainly participate in the FIRB process. I am not saying that we are going to oppose it, but we want to make sure that FIRB is clearly aware of the implications of coal security to the state. Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr M. McGowan : Back to the agreement, where does it say that it’s just about greenfields? Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : It does not. I am telling members what the approach is. Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr M. McGowan : Seriously; you go out and say it’s all about greenfields and this doesn’t say that. Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : All the discussion in China is about new projects. That is what China is interested in. There have been purchases of existing mines as well. Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr M. McGowan : Why didn’t you write it in there then? Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : The question was about security of supply. Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr E.S. Ripper interjected. Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : You can walk and chew gum at the same time. Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr E.S. Ripper : You can walk both sides of the street. One week you support Chinese investment; the next minute you’re pandering to antiChinese sentiment. Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
Mr C.J. BARNETT : What a very foolish thing to say. What an inappropriate thing to say. However, I deal with China, I deal with Japan and I deal with any other country as part of the government. I also deal, and I think I have the capacity to deal, with each individual investment decision and each individual project on its merit. For example, when China bought Mid West Mining, I did not see that that was a particularly big issue, yet it raged across the headlines in Australia. I think Chinese purchasing combined with the Indian purchase of the Collie coal field is a serious issue, far more significant than the purchase of a mid cap mining company in the Pilbara.
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