❓ Opposition questions the Premier about a royalty review and the former Minister for Mines and Petroleum's opposition to royalty increases, despite the review originating within the government. The Premier defends the review as an objective process to ensure fair payment for mineral resources.
AnsweredQoN 765Legislative Assembly
QuestionView source ↗
MINERAL ROYALTIES — REVIEW
765. Mr M. McGOWAN to the
Premier:
I refer to the royalty review that
the government's budget papers state will reap $180 million per annum.
(1) Why is the
former Minister for Mines and Petroleum, Hon Norman Moore, who knows as much as
anyone about the details of the royalty review, leading the charge against the
government's own royalty increases?
(2) If the
former minister, who was Minister for Mines and Petroleum in the Premier's
government, is against this policy, does that not demonstrate how poor this
policy decision is?
765. Mr M. McGOWAN to the
Premier:
I refer to the royalty review that
the government's budget papers state will reap $180 million per annum.
(1) Why is the
former Minister for Mines and Petroleum, Hon Norman Moore, who knows as much as
anyone about the details of the royalty review, leading the charge against the
government's own royalty increases?
(2) If the
former minister, who was Minister for Mines and Petroleum in the Premier's
government, is against this policy, does that not demonstrate how poor this
policy decision is?
AnswerView source ↗
(1)–(2)
The government has initiated, through the budget process, a review of
royalties. We have been very open with the mining industry about that, and
indeed the process began under the former minister, Hon Norman Moore. It is now
largely under the auspices of the current Minister for Mines and Petroleum and
the Department of Mines and Petroleum, and also the Department of State
Development. It is an objective process, designed to recover for the state as a
sale price 10 per cent of the, if you like, value of the mineral at the mine head.
That is the principle enshrined in the mining legislation, and we believe it is
appropriate that Western Australians—the owners of the natural resource—should
be paid a fair price. Ten per cent is not a high price, and indeed many
companies in other parts of the world will pay significantly more than that. We
will go through and assess the way that royalty is determined for all the major
mineral products, and if we find an anomaly, we will correct it. If it is a
significant anomaly, I imagine we will probably have a phase-in of any change
that takes place, but the principle is quite clear.
As to Hon Norman Moore working with
the gold industry, the last time I looked he had left Parliament. He is a free
agent and can work with whoever he wishes. That presents no problem for me at
all. Yes, he is extremely knowledgeable about the mining industry and the
mining industry will present its case, as it should. This review is an
invitation for it to present its case. I do not expect there will be major
changes, but who knows? If anyone in this house believes companies should not
pay the true value, then please stand and tell me about it.
The government has initiated, through the budget process, a review of
royalties. We have been very open with the mining industry about that, and
indeed the process began under the former minister, Hon Norman Moore. It is now
largely under the auspices of the current Minister for Mines and Petroleum and
the Department of Mines and Petroleum, and also the Department of State
Development. It is an objective process, designed to recover for the state as a
sale price 10 per cent of the, if you like, value of the mineral at the mine head.
That is the principle enshrined in the mining legislation, and we believe it is
appropriate that Western Australians—the owners of the natural resource—should
be paid a fair price. Ten per cent is not a high price, and indeed many
companies in other parts of the world will pay significantly more than that. We
will go through and assess the way that royalty is determined for all the major
mineral products, and if we find an anomaly, we will correct it. If it is a
significant anomaly, I imagine we will probably have a phase-in of any change
that takes place, but the principle is quite clear.
As to Hon Norman Moore working with
the gold industry, the last time I looked he had left Parliament. He is a free
agent and can work with whoever he wishes. That presents no problem for me at
all. Yes, he is extremely knowledgeable about the mining industry and the
mining industry will present its case, as it should. This review is an
invitation for it to present its case. I do not expect there will be major
changes, but who knows? If anyone in this house believes companies should not
pay the true value, then please stand and tell me about it.
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