Dr Gallop questions the Minister for Energy about support for the Kimberley tidal power project and representations from other ministers. Mr Barnett outlines the decision-making process involving Western Power and Cabinet, downplaying the Commonwealth's role.

AnsweredQoN 67Legislative Assembly
Asked
17 August 2000
Member
Portfolio
Energy

QuestionView source ↗

I refer to the report in The West Australian today indicating that the Commonwealth’s soon to be released due diligence study has dismissed State Government concerns about the Kimberley tidal power project. (1) Will the minister support the tidal power project if the due diligence study is positive and federal funding is made available? (2) Have any of the ministers reportedly in favour of tidal power - the Deputy Premier, the Minister for Planning and the Minister for Lands - made representations to the minister in support of the project? Mr BARNETT

AnswerView source ↗

(1)-(2) Members need to understand that the provision of power supply in the West Kimberley comes down to a commercial contract with Western Power that will have a value of approximately $600m over 18 years. It will be up to the board of directors of Western Power, subject to their due diligence and their rights, responsibilities and liabilities as company directors, to assess the issue and make a recommendation to me, which I will take to Cabinet. With respect to the Commonwealth’s so-called due diligence study, neither the Commonwealth nor its agencies will be a position to sign a contract for power supply. I am not aware of the terms of reference as the Commonwealth Government did not consult the State Government. I presume that the Commonwealth’s study will be to determine whether the Commonwealth will give a direct grant to Tidal Energy Australia. That is something that it can do whenever it wishes. Before the Commonwealth considers doing that it will determine whether the project is viable on technical grounds. Let me make it clear to members that the Commonwealth’s so-called due diligence study is not a comparison of gas versus tidal energy, nor is it an evaluation of a commercial contract for electricity supply. I understand that it is looking at the engineering and technical issues of physically constructing a tidal project and the financial issues associated with it. The Commonwealth has no role in the signing of a $600m contract. That is a matter for the board of Western Power, the Cabinet and the State of Western Australia.
(1) Will the minister support the tidal power project if the due diligence study is positive and federal funding is made available? (2) Have any of the ministers reportedly in favour of tidal power - the Deputy Premier, the Minister for Planning and the Minister for Lands - made representations to the minister in support of the project? Mr BARNETT replied: (1)-(2) Members need to understand that the provision of power supply in the West Kimberley comes down to a commercial contract with Western Power that will have a value of approximately $600m over 18 years. It will be up to the board of directors of Western Power, subject to their due diligence and their rights, responsibilities and liabilities as company directors, to assess the issue and make a recommendation to me, which I will take to Cabinet. With respect to the Commonwealth’s so-called due diligence study, neither the Commonwealth nor its agencies will be a position to sign a contract for power supply. I am not aware of the terms of reference as the Commonwealth Government did not consult the State Government. I presume that the Commonwealth’s study will be to determine whether the Commonwealth will give a direct grant to Tidal Energy Australia. That is something that it can do whenever it wishes. Before the Commonwealth considers doing that it will determine whether the project is viable on technical grounds. Let me make it clear to members that the Commonwealth’s so-called due diligence study is not a comparison of gas versus tidal energy, nor is it an evaluation of a commercial contract for electricity supply. I understand that it is looking at the engineering and technical issues of physically constructing a tidal project and the financial issues associated with it. The Commonwealth has no role in the signing of a $600m contract. That is a matter for the board of Western Power, the Cabinet and the State of Western Australia.
(2) Have any of the ministers reportedly in favour of tidal power - the Deputy Premier, the Minister for Planning and the Minister for Lands - made representations to the minister in support of the project? Mr BARNETT replied: (1)-(2) Members need to understand that the provision of power supply in the West Kimberley comes down to a commercial contract with Western Power that will have a value of approximately $600m over 18 years. It will be up to the board of directors of Western Power, subject to their due diligence and their rights, responsibilities and liabilities as company directors, to assess the issue and make a recommendation to me, which I will take to Cabinet. With respect to the Commonwealth’s so-called due diligence study, neither the Commonwealth nor its agencies will be a position to sign a contract for power supply. I am not aware of the terms of reference as the Commonwealth Government did not consult the State Government. I presume that the Commonwealth’s study will be to determine whether the Commonwealth will give a direct grant to Tidal Energy Australia. That is something that it can do whenever it wishes. Before the Commonwealth considers doing that it will determine whether the project is viable on technical grounds. Let me make it clear to members that the Commonwealth’s so-called due diligence study is not a comparison of gas versus tidal energy, nor is it an evaluation of a commercial contract for electricity supply. I understand that it is looking at the engineering and technical issues of physically constructing a tidal project and the financial issues associated with it. The Commonwealth has no role in the signing of a $600m contract. That is a matter for the board of Western Power, the Cabinet and the State of Western Australia.
Mr BARNETT replied: (1)-(2) Members need to understand that the provision of power supply in the West Kimberley comes down to a commercial contract with Western Power that will have a value of approximately $600m over 18 years. It will be up to the board of directors of Western Power, subject to their due diligence and their rights, responsibilities and liabilities as company directors, to assess the issue and make a recommendation to me, which I will take to Cabinet. With respect to the Commonwealth’s so-called due diligence study, neither the Commonwealth nor its agencies will be a position to sign a contract for power supply. I am not aware of the terms of reference as the Commonwealth Government did not consult the State Government. I presume that the Commonwealth’s study will be to determine whether the Commonwealth will give a direct grant to Tidal Energy Australia. That is something that it can do whenever it wishes. Before the Commonwealth considers doing that it will determine whether the project is viable on technical grounds. Let me make it clear to members that the Commonwealth’s so-called due diligence study is not a comparison of gas versus tidal energy, nor is it an evaluation of a commercial contract for electricity supply. I understand that it is looking at the engineering and technical issues of physically constructing a tidal project and the financial issues associated with it. The Commonwealth has no role in the signing of a $600m contract. That is a matter for the board of Western Power, the Cabinet and the State of Western Australia.
(1)-(2) Members need to understand that the provision of power supply in the West Kimberley comes down to a commercial contract with Western Power that will have a value of approximately $600m over 18 years. It will be up to the board of directors of Western Power, subject to their due diligence and their rights, responsibilities and liabilities as company directors, to assess the issue and make a recommendation to me, which I will take to Cabinet. With respect to the Commonwealth’s so-called due diligence study, neither the Commonwealth nor its agencies will be a position to sign a contract for power supply. I am not aware of the terms of reference as the Commonwealth Government did not consult the State Government. I presume that the Commonwealth’s study will be to determine whether the Commonwealth will give a direct grant to Tidal Energy Australia. That is something that it can do whenever it wishes. Before the Commonwealth considers doing that it will determine whether the project is viable on technical grounds. Let me make it clear to members that the Commonwealth’s so-called due diligence study is not a comparison of gas versus tidal energy, nor is it an evaluation of a commercial contract for electricity supply. I understand that it is looking at the engineering and technical issues of physically constructing a tidal project and the financial issues associated with it. The Commonwealth has no role in the signing of a $600m contract. That is a matter for the board of Western Power, the Cabinet and the State of Western Australia.

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