A parliamentary question regarding the monitoring of local content obligations in WA resource projects, prompted by an Auditor General's report. The Minister acknowledges past shortcomings but asserts improvements and clarifies departmental responsibilities.

AnsweredQoN 662Legislative Assembly
Asked
29 September 2011
Portfolio
State Development

QuestionView source ↗

AUDITOR GENERAL’S REPORT — MONITORING LOCAL CONTENT OBLIGATIONS
I have a supplementary question. Why should Western Australians trust the minister to ensure that WA jobs will come from WA resource projects when his own department is failing to monitor and maximise the use of local content in the state agreements? Mr C.J. BARNETT

AnswerView source ↗

That is what the Auditor General says. I think there has been a tightening up of the way in which projects are monitored. I think it had become slack, but it is now being done to a high standard and I think that is a good thing. As I said, the department will take on board the Auditor General’s comments and I will no doubt have a discussion with the Auditor General. I believe we have a sophisticated mining and petroleum industry in this state, a sophisticated Department of Mines and Petroleum and a sophisticated environmental agency. The Department of State Development is primarily a development agency. The task of developing a lot of mining regulations is actually done by other departments. Whilst State Development administers the agreement acts, the work on local content is done primarily through the Department of Commerce. That work is developing, and I think that is the way to go.
Mr C.J. BARNETT replied: That is what the Auditor General says. I think there has been a tightening up of the way in which projects are monitored. I think it had become slack, but it is now being done to a high standard and I think that is a good thing. As I said, the department will take on board the Auditor General’s comments and I will no doubt have a discussion with the Auditor General. I believe we have a sophisticated mining and petroleum industry in this state, a sophisticated Department of Mines and Petroleum and a sophisticated environmental agency. The Department of State Development is primarily a development agency. The task of developing a lot of mining regulations is actually done by other departments. Whilst State Development administers the agreement acts, the work on local content is done primarily through the Department of Commerce. That work is developing, and I think that is the way to go.
That is what the Auditor General says. I think there has been a tightening up of the way in which projects are monitored. I think it had become slack, but it is now being done to a high standard and I think that is a good thing. As I said, the department will take on board the Auditor General’s comments and I will no doubt have a discussion with the Auditor General. I believe we have a sophisticated mining and petroleum industry in this state, a sophisticated Department of Mines and Petroleum and a sophisticated environmental agency. The Department of State Development is primarily a development agency. The task of developing a lot of mining regulations is actually done by other departments. Whilst State Development administers the agreement acts, the work on local content is done primarily through the Department of Commerce. That work is developing, and I think that is the way to go.

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