❓ WA Parliament questions Carnegie Clean Energy's financial obligations and project viability under a Financial Assistance Agreement, particularly regarding milestones, reporting, and R&D tax credits. The Minister outlines steps taken to assess the project's future.
AnsweredQoN 4089Legislative Assembly
Asked
20 September 2018
Member
Portfolio
Regional Development; Agriculture and Food; Minister Assisting the Minister for State Development, Jobs and Trade
QuestionView source ↗
I refer to obligations to government under the Financial Assistance Agreement signed with Carnegie Clean Energy Limited, and ask: (a) has the Minister sought any reports or confirmations of financial obligations as outlined in the Financial Assistance Agreement; (b) has Carnegie Clean Energy presented any reports to Government under its obligations as outlined in the Finacial Assistance Agreement in respect of its Financial capacity to complete the project, and or meet the milestones of the project; (c) has Carnegie Clean Energy provided to Government any accounts or reports as outlined in section 4.5 of the Financial Assistance Agreement; (d) if so, will the Minister table these accounts or reports; (e) given the project has not met its first funding deliverable (1 July 2018), what steps is the Minister taking to ensure the project remains viable; (f) can the Minister confirm her advocacy on behalf of Carnegie Clean Energy for a tax exemption and indeed the level of sensitivity to the projects viability of not getting appropriate R and D tax credits; (g) has Carnegie Clean Energy completed an annual report on the project; and (h) if so, will the Minister table this report?
AnswerView source ↗
Answered
31 October 2018
Responded by
Minister representing the Minister for Regional Development; Agriculture and Food; Minister Assisting the Minister for State Development, Jobs and Trade
Response time
8 days
(a) On 2 October, the Minister met with the Chairman and the new Chief Executive Officer of Carnegie Clean Energy (Carnegie) to talk through Carnegie’s financial status and obligations under the Financial Assistance Agreement (FAA) in light of their changed circumstances.
(b) Invoking clause 3(d) of the FAA, the Department of Primary Industries and Regional Development (DPIRD) has requested that Carnegie provide a comprehensive and detailed funding plan for the Project in light of these changed circumstances.
(c) Carnegie has complied with all financial reporting obligations associated with the Royalties for Regions grant under section 4.5 of the FAA. However there were nil financial returns due as no State Government funds were disbursed over the 2017-18 financial year.
(d) Not applicable.
(e) The Minister will review the funding plan as described in (b) and make a decision as to the financial viability of the Project.
(f) The Minister has made representations to the Federal Government pointing out the negative impact the proposed changes to the Research and Development Tax Incentive would have on this, and other Western Australian emerging technology projects. Acknowledging that the uncertainty associated with these proposed changes may affect Carnegie’s ability to execute the Project, the State Government has requested that Carnegie deliver the funding plan (as described in (b), which will be used to assess whether Carnegie has the financial capability, in an altered Federal tax incentive environment, to complete the Project.
(g) See (c) above.
(h) Not applicable.
(b) Invoking clause 3(d) of the FAA, the Department of Primary Industries and Regional Development (DPIRD) has requested that Carnegie provide a comprehensive and detailed funding plan for the Project in light of these changed circumstances.
(c) Carnegie has complied with all financial reporting obligations associated with the Royalties for Regions grant under section 4.5 of the FAA. However there were nil financial returns due as no State Government funds were disbursed over the 2017-18 financial year.
(d) Not applicable.
(e) The Minister will review the funding plan as described in (b) and make a decision as to the financial viability of the Project.
(f) The Minister has made representations to the Federal Government pointing out the negative impact the proposed changes to the Research and Development Tax Incentive would have on this, and other Western Australian emerging technology projects. Acknowledging that the uncertainty associated with these proposed changes may affect Carnegie’s ability to execute the Project, the State Government has requested that Carnegie deliver the funding plan (as described in (b), which will be used to assess whether Carnegie has the financial capability, in an altered Federal tax incentive environment, to complete the Project.
(g) See (c) above.
(h) Not applicable.
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