The Premier outlines the government's efforts to support the resources sector, particularly oil and gas, by fostering collaboration between major companies and SMEs to increase local business opportunities and secure contracts. Key initiatives include the LNG taskforce, Future Energy Exports CRC, and the publication of forward work plans by major companies.

AnsweredQoN 123Legislative Assembly
Asked
11 March 2020
Portfolio
Premier

QuestionView source ↗

RESOURCES SECTOR
123. Mr K.J.J. MICHEL to the Premier:
I refer to the McGowan Labor
government's commitment to support our resources sector, guide our
economy and create jobs. Can the Premier outline to the house how the
government is working with the oil and gas sector to provide more opportunities
for local businesses and supporting them in securing contracts for work
undertaken by major resource companies?

AnswerView source ↗

I thank the member for Pilbara for
the question. He is a tireless advocate for the Pilbara. I was pleased to have
worked with the member for Pilbara to take up the fight for the Council of
Australian Governments' meeting to be held in the Pilbara. I am pleased
that the commonwealth government has agreed with our suggestion. It is a great
coup for the Pilbara and the first time that COAG has ever been held in
regional Western Australia. I am looking forward to showing the Prime Minister,
the Premiers, the Chief Ministers and some of the bureaucrats the Pilbara. I have a strong suspicion that a lot of them have
never been there. I am looking forward to showing them Port Hedland and
hopefully Karratha and Newman as well.
Since
coming to government, we have worked closely with the resources industry to
achieve outcomes. We want to ensure that our successful world-leading
mining, oil and gas sectors continue to create jobs. This morning, I held a major roundtable with industry again to discuss
the issue of coronavirus. I urged the industry this morning not to lay off people during this time. Western Australia
will come out of it. It is important that the mining, resources and energy sectors continue to have a strong workforce for when the coronavirus
issue is over.�
I urged them this morning to keep
their workforces in place and intact and to keep people employed. We want to
maximise opportunities for businesses. We established the LNG taskforce with
Woodside, Chevron, Shell, Santos, Inpex, the
Australian Petroleum Production and Exploration Association and UnionsWA. As a consequence,
the establishment of the Future Energy Exports Cooperative Research
Centre has now been allocated to Western Australia.
As part of that CRC we are planning on establishing the LNG Futures Facility.
It has been on the Infrastructure
Australia priority list and we will put $10 million towards it. That is a small-scale
LNG facility based in Kwinana to allow for the testing of new
technologies and the like. We have also established the LNG Operator Skills
Framework. That provides for the standardisation of training for people in the
industry to work anywhere in Australia or around the world. It is an important
issue that the workforce will very much appreciate.
Today
I announced a significant initiative as a consequence of the LNG jobs
taskforce, which I chair, that will directly benefit small to medium-sized
enterprises in Western Australia. I want to outline this to the chamber. For
the first time ever, Chevron, Woodside, Shell and Santos will all be publishing
their forward work plans. This will give small to medium-sized
enterprises a look ahead at the work these major companies will be contracting
out over the next two years. Essentially,
these major companies will be opening their books for small to medium-sized
businesses. This will provide transparency and certainty for suppliers. It will
give small to medium-sized businesses more time to prepare and gear up to
tender for contracts, and it gives those businesses the best opportunity to win
contracts for major oil and gas works. Through this, we expect to see more
competition among suppliers and better relationships between the majors and
businesses in the supply chain. These major companies usually keep these
two-year forward works plans private. These companies, which are competitors,
normally keep them close to their chest, but by working collaboratively we have
reached an outcome whereby all those companies have the confidence to turn
their cards face up. That could happen only through collaboration. This will
mean that the forward work plans will be made available to small to
medium-sized enterprises in Western Australia
so that they can look at what is coming and prepare themselves for that. This
is a massive win for small to medium-sized enterprises in Western Australia.
This has never been done before. As a consequence of a collaborative approach
by the LNG taskforce it is now happening for industry in our state.

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