Mr. Logan asks about the federal government's response to the WA government's request for funding for a tidal power project in Derby. Mr. Ripper expresses frustration with the lack of a concrete commitment from the Commonwealth, despite the looming deadline.

AnsweredQoN 870Legislative Assembly
Asked
9 April 2002
Member
Portfolio
Energy

QuestionView source ↗

I refer to the minister’s ultimatum to the Prime Minister about the provision of federal funding for a tidal power project in the west Kimberley. Has he received any response from the federal Government? Mr RIPPER

AnswerView source ↗

I did set a 12 April deadline a month ago for a binding, written commitment from the Commonwealth Government outlining the extent of its willingness to support a tidal power project in Derby. The State Government is a strong supporter of tidal power. I have a personal interest in this topic because, along with the former Leader of the National Party, I was a member of a 1990-91 select committee that investigated the issue. When the previous Minister for Resources Development’s 18-year contract with Energy Equity Corporation-Woodside Energy for the west Kimberley collapsed, I immediately wrote to the Prime Minister seeking clarification of the federal financial support that would be available for Derby. I received no reply, so I wrote again in January and again last month. The State Government has committed $15 million for roadworks. If a commercially viable proposal for a tidal power plant were presented, this Government would enter into a long-term power purchase contract worth hundreds of millions of dollars. However, the Commonwealth Government must first answer some critical threshold questions relating to the assumption of risk, the extent of any capital investment, whether that investment would be tax-free and the Commonwealth’s willingness to indemnify the State in maintaining a competitive energy price. I have received a response from the Prime Minister. Unfortunately, it does not address any of the critical issues. In fact, it gives the impression that the Commonwealth has not focused on the details of this project for at least two years. The best it can do is to offer further talks. I have taken up that offer; I have sent a high-level delegation to Canberra to represent Western Power, the Office of Energy and the Treasury. That delegation is meeting today with relevant agencies - the Department of the Prime Minister and Cabinet, Invest Australia and the Australian Greenhouse Office. When I receive a report from that delegation, I will be in a better position to judge whether the Commonwealth is willing to put its money where its mouth has been on tidal power. In the meantime, the Friday deadline stands.
Mr RIPPER replied: I did set a 12 April deadline a month ago for a binding, written commitment from the Commonwealth Government outlining the extent of its willingness to support a tidal power project in Derby. The State Government is a strong supporter of tidal power. I have a personal interest in this topic because, along with the former Leader of the National Party, I was a member of a 1990-91 select committee that investigated the issue. When the previous Minister for Resources Development’s 18-year contract with Energy Equity Corporation-Woodside Energy for the west Kimberley collapsed, I immediately wrote to the Prime Minister seeking clarification of the federal financial support that would be available for Derby. I received no reply, so I wrote again in January and again last month. The State Government has committed $15 million for roadworks. If a commercially viable proposal for a tidal power plant were presented, this Government would enter into a long-term power purchase contract worth hundreds of millions of dollars. However, the Commonwealth Government must first answer some critical threshold questions relating to the assumption of risk, the extent of any capital investment, whether that investment would be tax-free and the Commonwealth’s willingness to indemnify the State in maintaining a competitive energy price. I have received a response from the Prime Minister. Unfortunately, it does not address any of the critical issues. In fact, it gives the impression that the Commonwealth has not focused on the details of this project for at least two years. The best it can do is to offer further talks. I have taken up that offer; I have sent a high-level delegation to Canberra to represent Western Power, the Office of Energy and the Treasury. That delegation is meeting today with relevant agencies - the Department of the Prime Minister and Cabinet, Invest Australia and the Australian Greenhouse Office. When I receive a report from that delegation, I will be in a better position to judge whether the Commonwealth is willing to put its money where its mouth has been on tidal power. In the meantime, the Friday deadline stands.
I did set a 12 April deadline a month ago for a binding, written commitment from the Commonwealth Government outlining the extent of its willingness to support a tidal power project in Derby. The State Government is a strong supporter of tidal power. I have a personal interest in this topic because, along with the former Leader of the National Party, I was a member of a 1990-91 select committee that investigated the issue. When the previous Minister for Resources Development’s 18-year contract with Energy Equity Corporation-Woodside Energy for the west Kimberley collapsed, I immediately wrote to the Prime Minister seeking clarification of the federal financial support that would be available for Derby. I received no reply, so I wrote again in January and again last month. The State Government has committed $15 million for roadworks. If a commercially viable proposal for a tidal power plant were presented, this Government would enter into a long-term power purchase contract worth hundreds of millions of dollars. However, the Commonwealth Government must first answer some critical threshold questions relating to the assumption of risk, the extent of any capital investment, whether that investment would be tax-free and the Commonwealth’s willingness to indemnify the State in maintaining a competitive energy price. I have received a response from the Prime Minister. Unfortunately, it does not address any of the critical issues. In fact, it gives the impression that the Commonwealth has not focused on the details of this project for at least two years. The best it can do is to offer further talks. I have taken up that offer; I have sent a high-level delegation to Canberra to represent Western Power, the Office of Energy and the Treasury. That delegation is meeting today with relevant agencies - the Department of the Prime Minister and Cabinet, Invest Australia and the Australian Greenhouse Office. When I receive a report from that delegation, I will be in a better position to judge whether the Commonwealth is willing to put its money where its mouth has been on tidal power. In the meantime, the Friday deadline stands.
When the previous Minister for Resources Development’s 18-year contract with Energy Equity Corporation-Woodside Energy for the west Kimberley collapsed, I immediately wrote to the Prime Minister seeking clarification of the federal financial support that would be available for Derby. I received no reply, so I wrote again in January and again last month. The State Government has committed $15 million for roadworks. If a commercially viable proposal for a tidal power plant were presented, this Government would enter into a long-term power purchase contract worth hundreds of millions of dollars. However, the Commonwealth Government must first answer some critical threshold questions relating to the assumption of risk, the extent of any capital investment, whether that investment would be tax-free and the Commonwealth’s willingness to indemnify the State in maintaining a competitive energy price. I have received a response from the Prime Minister. Unfortunately, it does not address any of the critical issues. In fact, it gives the impression that the Commonwealth has not focused on the details of this project for at least two years. The best it can do is to offer further talks. I have taken up that offer; I have sent a high-level delegation to Canberra to represent Western Power, the Office of Energy and the Treasury. That delegation is meeting today with relevant agencies - the Department of the Prime Minister and Cabinet, Invest Australia and the Australian Greenhouse Office. When I receive a report from that delegation, I will be in a better position to judge whether the Commonwealth is willing to put its money where its mouth has been on tidal power. In the meantime, the Friday deadline stands.
I have received a response from the Prime Minister. Unfortunately, it does not address any of the critical issues. In fact, it gives the impression that the Commonwealth has not focused on the details of this project for at least two years. The best it can do is to offer further talks. I have taken up that offer; I have sent a high-level delegation to Canberra to represent Western Power, the Office of Energy and the Treasury. That delegation is meeting today with relevant agencies - the Department of the Prime Minister and Cabinet, Invest Australia and the Australian Greenhouse Office. When I receive a report from that delegation, I will be in a better position to judge whether the Commonwealth is willing to put its money where its mouth has been on tidal power. In the meantime, the Friday deadline stands.

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