❓ Opposition questions the Premier on local job guarantees in the resources sector, citing empty workshops despite promises. Premier acknowledges the issue, explains contributing factors like the GFC and offshore fabrication relationships, and anticipates improvement.
AnsweredQoN 1Legislative Assembly
QuestionView source ↗
RESOURCES SECTOR — LOCAL BUSINESS OPPORTUNITIES
Mr Speaker, what a pleasure it is to see you. I refer to the Premier’s promise in 2009 regarding local jobs from big projects that “workshops will all be full”, and now, in 2011, to the fact that they quite clearly are not full, as the Premier would have learned on his recent visits. (1) What specific action has the Premier taken to guarantee local content from local mining and energy projects? (2) What guarantees did the Premier receive from major mining and oil and gas companies last week at his meetings with them on the question of local jobs and of local businesses getting work from resources projects? (3) Will the Premier support legislation to guarantee local participation plans and public reporting of local content from resources projects? Mr C.J. BARNETT
Mr Speaker, what a pleasure it is to see you. I refer to the Premier’s promise in 2009 regarding local jobs from big projects that “workshops will all be full”, and now, in 2011, to the fact that they quite clearly are not full, as the Premier would have learned on his recent visits. (1) What specific action has the Premier taken to guarantee local content from local mining and energy projects? (2) What guarantees did the Premier receive from major mining and oil and gas companies last week at his meetings with them on the question of local jobs and of local businesses getting work from resources projects? (3) Will the Premier support legislation to guarantee local participation plans and public reporting of local content from resources projects? Mr C.J. BARNETT
AnswerView source ↗
Mr Speaker, it is nice to be back. (1)–(3) The issue of local content is hardly new. I dealt with it during the 1990s with mixed successes; I will admit that. Sometimes projects were kept for the state and sometimes they were attracted back; it did not work out. I said that the workshops of Western Australia will be full with the major petroleum mining projects getting underway. I have no doubt that will be the case, but I would like to comment on — Mr E.S. Ripper : They are pretty empty now! Mr C.J. BARNETT : Yes; and I will explain why. State agreements contain responsibilities in terms of full and fair opportunities for local firms and the like. We have an industry capability network that tries to work between major projects and local suppliers and contractors. If we look at the broader mining and petroleum services industry, most of it is extremely busy; if not flat out. The major mining service companies are literally struggling to deal with the amount of work that is almost walking in the door. Construction activity is very strong, and it is picking up and will grow very dramatically this year. If there is one gap, it is in the steel fabrication sector. There is no doubt about that. That is where the gap is. Mr E.S. Ripper : In engineering design as well? Mr C.J. BARNETT : Let me finish. That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
I refer to the Premier’s promise in 2009 regarding local jobs from big projects that “workshops will all be full”, and now, in 2011, to the fact that they quite clearly are not full, as the Premier would have learned on his recent visits. (1) What specific action has the Premier taken to guarantee local content from local mining and energy projects? (2) What guarantees did the Premier receive from major mining and oil and gas companies last week at his meetings with them on the question of local jobs and of local businesses getting work from resources projects? (3) Will the Premier support legislation to guarantee local participation plans and public reporting of local content from resources projects? Mr C.J. BARNETT replied: Mr Speaker, it is nice to be back. (1)–(3) The issue of local content is hardly new. I dealt with it during the 1990s with mixed successes; I will admit that. Sometimes projects were kept for the state and sometimes they were attracted back; it did not work out. I said that the workshops of Western Australia will be full with the major petroleum mining projects getting underway. I have no doubt that will be the case, but I would like to comment on — Mr E.S. Ripper : They are pretty empty now! Mr C.J. BARNETT : Yes; and I will explain why. State agreements contain responsibilities in terms of full and fair opportunities for local firms and the like. We have an industry capability network that tries to work between major projects and local suppliers and contractors. If we look at the broader mining and petroleum services industry, most of it is extremely busy; if not flat out. The major mining service companies are literally struggling to deal with the amount of work that is almost walking in the door. Construction activity is very strong, and it is picking up and will grow very dramatically this year. If there is one gap, it is in the steel fabrication sector. There is no doubt about that. That is where the gap is. Mr E.S. Ripper : In engineering design as well? Mr C.J. BARNETT : Let me finish. That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
(1) What specific action has the Premier taken to guarantee local content from local mining and energy projects? (2) What guarantees did the Premier receive from major mining and oil and gas companies last week at his meetings with them on the question of local jobs and of local businesses getting work from resources projects? (3) Will the Premier support legislation to guarantee local participation plans and public reporting of local content from resources projects? Mr C.J. BARNETT replied: Mr Speaker, it is nice to be back. (1)–(3) The issue of local content is hardly new. I dealt with it during the 1990s with mixed successes; I will admit that. Sometimes projects were kept for the state and sometimes they were attracted back; it did not work out. I said that the workshops of Western Australia will be full with the major petroleum mining projects getting underway. I have no doubt that will be the case, but I would like to comment on — Mr E.S. Ripper : They are pretty empty now! Mr C.J. BARNETT : Yes; and I will explain why. State agreements contain responsibilities in terms of full and fair opportunities for local firms and the like. We have an industry capability network that tries to work between major projects and local suppliers and contractors. If we look at the broader mining and petroleum services industry, most of it is extremely busy; if not flat out. The major mining service companies are literally struggling to deal with the amount of work that is almost walking in the door. Construction activity is very strong, and it is picking up and will grow very dramatically this year. If there is one gap, it is in the steel fabrication sector. There is no doubt about that. That is where the gap is. Mr E.S. Ripper : In engineering design as well? Mr C.J. BARNETT : Let me finish. That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
(2) What guarantees did the Premier receive from major mining and oil and gas companies last week at his meetings with them on the question of local jobs and of local businesses getting work from resources projects? (3) Will the Premier support legislation to guarantee local participation plans and public reporting of local content from resources projects? Mr C.J. BARNETT replied: Mr Speaker, it is nice to be back. (1)–(3) The issue of local content is hardly new. I dealt with it during the 1990s with mixed successes; I will admit that. Sometimes projects were kept for the state and sometimes they were attracted back; it did not work out. I said that the workshops of Western Australia will be full with the major petroleum mining projects getting underway. I have no doubt that will be the case, but I would like to comment on — Mr E.S. Ripper : They are pretty empty now! Mr C.J. BARNETT : Yes; and I will explain why. State agreements contain responsibilities in terms of full and fair opportunities for local firms and the like. We have an industry capability network that tries to work between major projects and local suppliers and contractors. If we look at the broader mining and petroleum services industry, most of it is extremely busy; if not flat out. The major mining service companies are literally struggling to deal with the amount of work that is almost walking in the door. Construction activity is very strong, and it is picking up and will grow very dramatically this year. If there is one gap, it is in the steel fabrication sector. There is no doubt about that. That is where the gap is. Mr E.S. Ripper : In engineering design as well? Mr C.J. BARNETT : Let me finish. That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
(3) Will the Premier support legislation to guarantee local participation plans and public reporting of local content from resources projects? Mr C.J. BARNETT replied: Mr Speaker, it is nice to be back. (1)–(3) The issue of local content is hardly new. I dealt with it during the 1990s with mixed successes; I will admit that. Sometimes projects were kept for the state and sometimes they were attracted back; it did not work out. I said that the workshops of Western Australia will be full with the major petroleum mining projects getting underway. I have no doubt that will be the case, but I would like to comment on — Mr E.S. Ripper : They are pretty empty now! Mr C.J. BARNETT : Yes; and I will explain why. State agreements contain responsibilities in terms of full and fair opportunities for local firms and the like. We have an industry capability network that tries to work between major projects and local suppliers and contractors. If we look at the broader mining and petroleum services industry, most of it is extremely busy; if not flat out. The major mining service companies are literally struggling to deal with the amount of work that is almost walking in the door. Construction activity is very strong, and it is picking up and will grow very dramatically this year. If there is one gap, it is in the steel fabrication sector. There is no doubt about that. That is where the gap is. Mr E.S. Ripper : In engineering design as well? Mr C.J. BARNETT : Let me finish. That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT replied: Mr Speaker, it is nice to be back. (1)–(3) The issue of local content is hardly new. I dealt with it during the 1990s with mixed successes; I will admit that. Sometimes projects were kept for the state and sometimes they were attracted back; it did not work out. I said that the workshops of Western Australia will be full with the major petroleum mining projects getting underway. I have no doubt that will be the case, but I would like to comment on — Mr E.S. Ripper : They are pretty empty now! Mr C.J. BARNETT : Yes; and I will explain why. State agreements contain responsibilities in terms of full and fair opportunities for local firms and the like. We have an industry capability network that tries to work between major projects and local suppliers and contractors. If we look at the broader mining and petroleum services industry, most of it is extremely busy; if not flat out. The major mining service companies are literally struggling to deal with the amount of work that is almost walking in the door. Construction activity is very strong, and it is picking up and will grow very dramatically this year. If there is one gap, it is in the steel fabrication sector. There is no doubt about that. That is where the gap is. Mr E.S. Ripper : In engineering design as well? Mr C.J. BARNETT : Let me finish. That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr Speaker, it is nice to be back. (1)–(3) The issue of local content is hardly new. I dealt with it during the 1990s with mixed successes; I will admit that. Sometimes projects were kept for the state and sometimes they were attracted back; it did not work out. I said that the workshops of Western Australia will be full with the major petroleum mining projects getting underway. I have no doubt that will be the case, but I would like to comment on — Mr E.S. Ripper : They are pretty empty now! Mr C.J. BARNETT : Yes; and I will explain why. State agreements contain responsibilities in terms of full and fair opportunities for local firms and the like. We have an industry capability network that tries to work between major projects and local suppliers and contractors. If we look at the broader mining and petroleum services industry, most of it is extremely busy; if not flat out. The major mining service companies are literally struggling to deal with the amount of work that is almost walking in the door. Construction activity is very strong, and it is picking up and will grow very dramatically this year. If there is one gap, it is in the steel fabrication sector. There is no doubt about that. That is where the gap is. Mr E.S. Ripper : In engineering design as well? Mr C.J. BARNETT : Let me finish. That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
(1)–(3) The issue of local content is hardly new. I dealt with it during the 1990s with mixed successes; I will admit that. Sometimes projects were kept for the state and sometimes they were attracted back; it did not work out. I said that the workshops of Western Australia will be full with the major petroleum mining projects getting underway. I have no doubt that will be the case, but I would like to comment on — Mr E.S. Ripper : They are pretty empty now! Mr C.J. BARNETT : Yes; and I will explain why. State agreements contain responsibilities in terms of full and fair opportunities for local firms and the like. We have an industry capability network that tries to work between major projects and local suppliers and contractors. If we look at the broader mining and petroleum services industry, most of it is extremely busy; if not flat out. The major mining service companies are literally struggling to deal with the amount of work that is almost walking in the door. Construction activity is very strong, and it is picking up and will grow very dramatically this year. If there is one gap, it is in the steel fabrication sector. There is no doubt about that. That is where the gap is. Mr E.S. Ripper : In engineering design as well? Mr C.J. BARNETT : Let me finish. That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr E.S. Ripper : They are pretty empty now! Mr C.J. BARNETT : Yes; and I will explain why. State agreements contain responsibilities in terms of full and fair opportunities for local firms and the like. We have an industry capability network that tries to work between major projects and local suppliers and contractors. If we look at the broader mining and petroleum services industry, most of it is extremely busy; if not flat out. The major mining service companies are literally struggling to deal with the amount of work that is almost walking in the door. Construction activity is very strong, and it is picking up and will grow very dramatically this year. If there is one gap, it is in the steel fabrication sector. There is no doubt about that. That is where the gap is. Mr E.S. Ripper : In engineering design as well? Mr C.J. BARNETT : Let me finish. That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : Yes; and I will explain why. State agreements contain responsibilities in terms of full and fair opportunities for local firms and the like. We have an industry capability network that tries to work between major projects and local suppliers and contractors. If we look at the broader mining and petroleum services industry, most of it is extremely busy; if not flat out. The major mining service companies are literally struggling to deal with the amount of work that is almost walking in the door. Construction activity is very strong, and it is picking up and will grow very dramatically this year. If there is one gap, it is in the steel fabrication sector. There is no doubt about that. That is where the gap is. Mr E.S. Ripper : In engineering design as well? Mr C.J. BARNETT : Let me finish. That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr E.S. Ripper : In engineering design as well? Mr C.J. BARNETT : Let me finish. That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : Let me finish. That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : Yes—and watch this space!
I refer to the Premier’s promise in 2009 regarding local jobs from big projects that “workshops will all be full”, and now, in 2011, to the fact that they quite clearly are not full, as the Premier would have learned on his recent visits. (1) What specific action has the Premier taken to guarantee local content from local mining and energy projects? (2) What guarantees did the Premier receive from major mining and oil and gas companies last week at his meetings with them on the question of local jobs and of local businesses getting work from resources projects? (3) Will the Premier support legislation to guarantee local participation plans and public reporting of local content from resources projects? Mr C.J. BARNETT replied: Mr Speaker, it is nice to be back. (1)–(3) The issue of local content is hardly new. I dealt with it during the 1990s with mixed successes; I will admit that. Sometimes projects were kept for the state and sometimes they were attracted back; it did not work out. I said that the workshops of Western Australia will be full with the major petroleum mining projects getting underway. I have no doubt that will be the case, but I would like to comment on — Mr E.S. Ripper : They are pretty empty now! Mr C.J. BARNETT : Yes; and I will explain why. State agreements contain responsibilities in terms of full and fair opportunities for local firms and the like. We have an industry capability network that tries to work between major projects and local suppliers and contractors. If we look at the broader mining and petroleum services industry, most of it is extremely busy; if not flat out. The major mining service companies are literally struggling to deal with the amount of work that is almost walking in the door. Construction activity is very strong, and it is picking up and will grow very dramatically this year. If there is one gap, it is in the steel fabrication sector. There is no doubt about that. That is where the gap is. Mr E.S. Ripper : In engineering design as well? Mr C.J. BARNETT : Let me finish. That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
(1) What specific action has the Premier taken to guarantee local content from local mining and energy projects? (2) What guarantees did the Premier receive from major mining and oil and gas companies last week at his meetings with them on the question of local jobs and of local businesses getting work from resources projects? (3) Will the Premier support legislation to guarantee local participation plans and public reporting of local content from resources projects? Mr C.J. BARNETT replied: Mr Speaker, it is nice to be back. (1)–(3) The issue of local content is hardly new. I dealt with it during the 1990s with mixed successes; I will admit that. Sometimes projects were kept for the state and sometimes they were attracted back; it did not work out. I said that the workshops of Western Australia will be full with the major petroleum mining projects getting underway. I have no doubt that will be the case, but I would like to comment on — Mr E.S. Ripper : They are pretty empty now! Mr C.J. BARNETT : Yes; and I will explain why. State agreements contain responsibilities in terms of full and fair opportunities for local firms and the like. We have an industry capability network that tries to work between major projects and local suppliers and contractors. If we look at the broader mining and petroleum services industry, most of it is extremely busy; if not flat out. The major mining service companies are literally struggling to deal with the amount of work that is almost walking in the door. Construction activity is very strong, and it is picking up and will grow very dramatically this year. If there is one gap, it is in the steel fabrication sector. There is no doubt about that. That is where the gap is. Mr E.S. Ripper : In engineering design as well? Mr C.J. BARNETT : Let me finish. That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
(2) What guarantees did the Premier receive from major mining and oil and gas companies last week at his meetings with them on the question of local jobs and of local businesses getting work from resources projects? (3) Will the Premier support legislation to guarantee local participation plans and public reporting of local content from resources projects? Mr C.J. BARNETT replied: Mr Speaker, it is nice to be back. (1)–(3) The issue of local content is hardly new. I dealt with it during the 1990s with mixed successes; I will admit that. Sometimes projects were kept for the state and sometimes they were attracted back; it did not work out. I said that the workshops of Western Australia will be full with the major petroleum mining projects getting underway. I have no doubt that will be the case, but I would like to comment on — Mr E.S. Ripper : They are pretty empty now! Mr C.J. BARNETT : Yes; and I will explain why. State agreements contain responsibilities in terms of full and fair opportunities for local firms and the like. We have an industry capability network that tries to work between major projects and local suppliers and contractors. If we look at the broader mining and petroleum services industry, most of it is extremely busy; if not flat out. The major mining service companies are literally struggling to deal with the amount of work that is almost walking in the door. Construction activity is very strong, and it is picking up and will grow very dramatically this year. If there is one gap, it is in the steel fabrication sector. There is no doubt about that. That is where the gap is. Mr E.S. Ripper : In engineering design as well? Mr C.J. BARNETT : Let me finish. That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
(3) Will the Premier support legislation to guarantee local participation plans and public reporting of local content from resources projects? Mr C.J. BARNETT replied: Mr Speaker, it is nice to be back. (1)–(3) The issue of local content is hardly new. I dealt with it during the 1990s with mixed successes; I will admit that. Sometimes projects were kept for the state and sometimes they were attracted back; it did not work out. I said that the workshops of Western Australia will be full with the major petroleum mining projects getting underway. I have no doubt that will be the case, but I would like to comment on — Mr E.S. Ripper : They are pretty empty now! Mr C.J. BARNETT : Yes; and I will explain why. State agreements contain responsibilities in terms of full and fair opportunities for local firms and the like. We have an industry capability network that tries to work between major projects and local suppliers and contractors. If we look at the broader mining and petroleum services industry, most of it is extremely busy; if not flat out. The major mining service companies are literally struggling to deal with the amount of work that is almost walking in the door. Construction activity is very strong, and it is picking up and will grow very dramatically this year. If there is one gap, it is in the steel fabrication sector. There is no doubt about that. That is where the gap is. Mr E.S. Ripper : In engineering design as well? Mr C.J. BARNETT : Let me finish. That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT replied: Mr Speaker, it is nice to be back. (1)–(3) The issue of local content is hardly new. I dealt with it during the 1990s with mixed successes; I will admit that. Sometimes projects were kept for the state and sometimes they were attracted back; it did not work out. I said that the workshops of Western Australia will be full with the major petroleum mining projects getting underway. I have no doubt that will be the case, but I would like to comment on — Mr E.S. Ripper : They are pretty empty now! Mr C.J. BARNETT : Yes; and I will explain why. State agreements contain responsibilities in terms of full and fair opportunities for local firms and the like. We have an industry capability network that tries to work between major projects and local suppliers and contractors. If we look at the broader mining and petroleum services industry, most of it is extremely busy; if not flat out. The major mining service companies are literally struggling to deal with the amount of work that is almost walking in the door. Construction activity is very strong, and it is picking up and will grow very dramatically this year. If there is one gap, it is in the steel fabrication sector. There is no doubt about that. That is where the gap is. Mr E.S. Ripper : In engineering design as well? Mr C.J. BARNETT : Let me finish. That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr Speaker, it is nice to be back. (1)–(3) The issue of local content is hardly new. I dealt with it during the 1990s with mixed successes; I will admit that. Sometimes projects were kept for the state and sometimes they were attracted back; it did not work out. I said that the workshops of Western Australia will be full with the major petroleum mining projects getting underway. I have no doubt that will be the case, but I would like to comment on — Mr E.S. Ripper : They are pretty empty now! Mr C.J. BARNETT : Yes; and I will explain why. State agreements contain responsibilities in terms of full and fair opportunities for local firms and the like. We have an industry capability network that tries to work between major projects and local suppliers and contractors. If we look at the broader mining and petroleum services industry, most of it is extremely busy; if not flat out. The major mining service companies are literally struggling to deal with the amount of work that is almost walking in the door. Construction activity is very strong, and it is picking up and will grow very dramatically this year. If there is one gap, it is in the steel fabrication sector. There is no doubt about that. That is where the gap is. Mr E.S. Ripper : In engineering design as well? Mr C.J. BARNETT : Let me finish. That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
(1)–(3) The issue of local content is hardly new. I dealt with it during the 1990s with mixed successes; I will admit that. Sometimes projects were kept for the state and sometimes they were attracted back; it did not work out. I said that the workshops of Western Australia will be full with the major petroleum mining projects getting underway. I have no doubt that will be the case, but I would like to comment on — Mr E.S. Ripper : They are pretty empty now! Mr C.J. BARNETT : Yes; and I will explain why. State agreements contain responsibilities in terms of full and fair opportunities for local firms and the like. We have an industry capability network that tries to work between major projects and local suppliers and contractors. If we look at the broader mining and petroleum services industry, most of it is extremely busy; if not flat out. The major mining service companies are literally struggling to deal with the amount of work that is almost walking in the door. Construction activity is very strong, and it is picking up and will grow very dramatically this year. If there is one gap, it is in the steel fabrication sector. There is no doubt about that. That is where the gap is. Mr E.S. Ripper : In engineering design as well? Mr C.J. BARNETT : Let me finish. That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr E.S. Ripper : They are pretty empty now! Mr C.J. BARNETT : Yes; and I will explain why. State agreements contain responsibilities in terms of full and fair opportunities for local firms and the like. We have an industry capability network that tries to work between major projects and local suppliers and contractors. If we look at the broader mining and petroleum services industry, most of it is extremely busy; if not flat out. The major mining service companies are literally struggling to deal with the amount of work that is almost walking in the door. Construction activity is very strong, and it is picking up and will grow very dramatically this year. If there is one gap, it is in the steel fabrication sector. There is no doubt about that. That is where the gap is. Mr E.S. Ripper : In engineering design as well? Mr C.J. BARNETT : Let me finish. That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : Yes; and I will explain why. State agreements contain responsibilities in terms of full and fair opportunities for local firms and the like. We have an industry capability network that tries to work between major projects and local suppliers and contractors. If we look at the broader mining and petroleum services industry, most of it is extremely busy; if not flat out. The major mining service companies are literally struggling to deal with the amount of work that is almost walking in the door. Construction activity is very strong, and it is picking up and will grow very dramatically this year. If there is one gap, it is in the steel fabrication sector. There is no doubt about that. That is where the gap is. Mr E.S. Ripper : In engineering design as well? Mr C.J. BARNETT : Let me finish. That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr E.S. Ripper : In engineering design as well? Mr C.J. BARNETT : Let me finish. That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : Let me finish. That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
That gap is there. Last week, last Tuesday I think, with the now Minister for Commerce, Hon Simon O’Brien, I toured four or five workshops. I spoke to the management and to some of the workers and I inspected those workshops. First let me say that there is no doubt that many of those steel fabricators, both longstanding and newer entries to the industry, have invested millions, and in some cases tens of millions, of dollars in their set-ups. The computer-aided machinery they have is state-of-the-art and I compliment them on it. They have made a very substantial investment. It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
It is fair to say that the sector is probably working at one-third of its normal capacity or what it would expect to achieve. That is not entirely uniform; some fabricators are reasonably busy and some are very, very quiet. It is important, I think, to try to come to grips with exactly what might have happened and why this one part of the mining services sector is quiet while the rest of it is flat out. And it is flat out. First, the global financial crisis resulted in the stalling of a number of prospective projects that were either approaching financial closure or going into construction. We lost two years; they froze for two years. Even outside of any action taken by industry or by government, I am advised by people in the industry that they will see skilled fabrication work start to flow into those industries probably over the next six to eight months as some of the existing projects go into construction and as other projects move from earthworks into actual steel above-the-ground work. Inevitably, there will be a flow-on of work, but that is probably six to eight months away. That is the first factor. The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
The other factor is somewhat paradoxical; namely, around the time in 2007 when the industry was in high activity and a lot of construction was taking place, many of the major projects could not get done the work that they would normally have done in Western Australia, simply because the fabrication shops were flat out. In response to that, they did the only thing available to them; that is, they took work offshore. Many of the offshore fabricators did not meet Australian standards and did not have the competency. But to get projects underway here, engineers and staff supervisors from Western Australia went to workshops, particularly in South-East Asia to bring them up to standard so that they could do work of the right quality. The result is a relationship was formed, and that work has continued. That is the second factor. That is a change that, ironically, came out of a period of heightened activity that saw work go offshore. Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr E.S. Ripper : So it is a change that requires a government response, isn’t it? Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : I am trying to answer the question. I am trying to do it in a sensible way. The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
The third factor that stands out is that although we have always seen the oil and gas industry do a fair chunk of its work offshore, particularly some of the larger more complex units, the pattern that occurred during the 2007 period has also seen the mining industry—the traditional rock mining industry—follow the same procurement and construction activities that have been practised in the petroleum industry. Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr E.S. Ripper : An interesting analysis, but what is the response? Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : I am trying to tell the Leader of the Opposition! I took the time to visit — Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr E.S. Ripper : As I did. Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : Yes; and that is good—and to talk to industry members and the workers firsthand. Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr R.H. Cook : Four months too late. Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : Okay, the member for Kwinana might say “too late”. Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Several members interjected. The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
The SPEAKER : Members! Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : I recognise that opposition members raised this issue last year, and good on them for doing so. It is a real issue in a number of opposition member’s electorates in that area. Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Ms M.M. Quirk : It is a real issue for the whole of the state. Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : Okay, okay; you have not had a good start today! Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr A.P. O’Gorman : You sold it overseas to the cheapest price. Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr P.B. Watson : You didn’t have a good holiday, cob? Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : I did have a good holiday, thank you. The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
The SPEAKER : Take a seat, Premier. Member for Joondalup, if you wish to ask questions, I will give you that opportunity, but I formally call you to order for the first time today. Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : I do not want to give a longer answer. That is the background. Last week, I toured the workshops and spoke to the management, and there were differing points of view amongst management. Some of them, although their workshops were comparatively quiet, were absolutely optimistic. Whether they had work they knew was coming in, I do not know. There was a differing view amongst some of the owners and managers of those businesses. Nevertheless, workshops were comparatively quiet. As a result of that, I had a series of meetings in succession last week. The first one was with the heads of the major petroleum projects, followed by one with the heads of the major mining projects, followed by one with by the heads of the major lead contractors. And there is another factor: many of the lead contractors, Australian companies, win contracts from major proponents and then themselves farm out some of the work offshore. That is another factor that I must say was not around when I was dealing with this issue in the late 1990s. There has been some structural change and behavioural change in the industry. It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
It is also up to some of the fabricators perhaps to do more in aligning themselves with lead contractors and project proponents. There is an element on both sides. We had good discussions last week. I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
I intend to go back into those workshops, taking with me some of those industry leaders in petroleum and mining so that they can see the quality and understand the capacity of those facilities. There has been some verbal discussion about breaking up some of the contracts to make sure that there are smaller contracts so that the type of work that can easily be done, and, indeed, some of the more advanced work, flows into local workshops. Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Ms M.M. Quirk : Crumbs. Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : Crumbs—what an unintelligent contribution! If the member were to look at the scale of the modules being done offshore, she would see that a relatively small component of total capital investment in the mining and petroleum industry would fill these workshops. What I am doing, member for Girrawheen, is getting out there to try to get that work—some part of that total capital investment of $170 billion in projects—into those workshops so that they will be busy. Now that has not happened yet, but I am optimistic that it will happen, and I am doing what I can to achieve it. Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Several members interjected. Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : I respect the work of members on that side, but not those members; they did not contribute. I respect the work of the member for Cockburn and other members opposite who have raised this issue and who make constructive comments. So that is what we are doing. The opposition’s solution is prescriptive, and that is not the approach of this government. Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr E.S. Ripper : It is about accountability to our community. Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : No; it is prescriptive, because the Labor Party will get between the private sector proponent and the private sector contractor and have government interference in contracting. That is something that we will not do. We will achieve this in a positive way. Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr R.H. Cook : It is about jobs in Western Australia. Mr C.J. BARNETT : Yes—and watch this space!
Mr C.J. BARNETT : Yes—and watch this space!
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