Question regarding delays to the Mumbida Wind Farm project and the Minister's refusal to approve it, citing concerns about tendering and network stability. The Minister defends his position, highlighting the lack of a tender process and technical issues.

AnsweredQoN 874Legislative Assembly
Asked
25 June 2003
Portfolio
Energy

QuestionView source ↗

MUMBIDA WIND FARM PROJECT, GERALDTON
I refer to the proposed Mumbida wind farm project in Geraldton, which has now been delayed by six months and the minister’s response to my question on 17 June, which reads - It is not a matter in which I have a current direct recommendation from Western Power that is awaiting my decision. (1) How does the minister reconcile his answer with the decision by the Western Power board on 24 July 2002 to approve a project in principle with a commitment of a maximum of $13 million and the decision to develop a robust argument to obtain the minister’s approval for this project, and two subsequent written requests from Western Power in October and December 2002 for the minister to approve the project? (2) Is the minister’s refusal to approve the project a result of his prohibiting Western Power borrowing additional funds because of the borrowing needs of the Perth urban rail development? (3) Will the minister now approve the project subject to appropriate technical and contractual requirements and actually do something meaningful to encourage renewable power generation in Western Australia? Mr E.S. RIPPER

AnswerView source ↗

(1)-(3) I think the word that the shadow Minister for Energy needs to focus on in my response to him is “current”. I did get a recommendation from the former managing director of Western Power regarding the Mumbida wind project. However, by the time I had answered the member’s question I had had further discussions with the new managing director of Western Power. No longer did I have a current recommendation before me, because this matter was subject to ongoing reassessment by Western Power. I explained two reasons for it being subject to ongoing reassessment. I make no apology for the first reason, which was that the former managing director of Western Power wanted me to enter into a contract without the benefit of a tender. What does the House think about that? On the day that we have had a debate about tender processes, the shadow Minister for Energy has supported a government trading enterprise entering into a contract for turbines without going to tender. I make no apology for saying that was a problem. I was not prepared to approve a government trading enterprise entering into a contract without going to tender. If the Opposition thinks that is the correct way for a government trading enterprise to behave, it had better explain its view of tender probity. Secondly, I received technical advice from Western Power to the effect that there were potential problems with the stability of the electrical network and the connection of further wind farms. I required that matter to be resolved. To date Western Power’s network business unit has not approved the application for technical connection to the network of the Mumbida wind farm. An opposition member interjected. Mr E.S. RIPPER: That is not the issue. It does not even have the technical approval to connect to the network, and the shadow Minister for Energy thinks I should be signing off on a project without the benefit of a tender process. I would like to know who has been speaking to the Opposition about this and what interests those people have. Why is the Opposition trying to pressure the Government to do a deal without a tender? Mr J.N. Hyde: Declare your shares in Pacific Hydro! Withdrawal of Remark Mr C.J. BARNETT: The member for Perth, by way of interjection, when referring to the member for Darling Range said, “Declare your shares in Pacific Hydro.” That is a clear attempt to impugn his reputation and imply a share ownership - which I suggest he does not have - that he has not complied with the accountability provisions under financial disclosure and that he has a conflict of interest. It is a clear attempt to impugn his reputation. I demand that you ask him to withdraw and apologise, Mr Speaker. The SPEAKER: The Leader of the Opposition can demand all he likes, but on the face of it, the suggestion does not impugn anyone’s character. However, the speaker of the comment will know whether that was in fact the intention of his interjection, and I ask him to withdraw if that was his intention. Mr J.N. HYDE: I was referring to all members of Parliament, but I will withdraw. Questions without Notice Resumed Several members interjected. The SPEAKER: I call to order the member for Perth and the Leader of the Opposition.
(2) Is the minister’s refusal to approve the project a result of his prohibiting Western Power borrowing additional funds because of the borrowing needs of the Perth urban rail development? (3) Will the minister now approve the project subject to appropriate technical and contractual requirements and actually do something meaningful to encourage renewable power generation in Western Australia? Mr E.S. RIPPER replied: (1)-(3) I think the word that the shadow Minister for Energy needs to focus on in my response to him is “current”. I did get a recommendation from the former managing director of Western Power regarding the Mumbida wind project. However, by the time I had answered the member’s question I had had further discussions with the new managing director of Western Power. No longer did I have a current recommendation before me, because this matter was subject to ongoing reassessment by Western Power. I explained two reasons for it being subject to ongoing reassessment. I make no apology for the first reason, which was that the former managing director of Western Power wanted me to enter into a contract without the benefit of a tender. What does the House think about that? On the day that we have had a debate about tender processes, the shadow Minister for Energy has supported a government trading enterprise entering into a contract for turbines without going to tender. I make no apology for saying that was a problem. I was not prepared to approve a government trading enterprise entering into a contract without going to tender. If the Opposition thinks that is the correct way for a government trading enterprise to behave, it had better explain its view of tender probity. Secondly, I received technical advice from Western Power to the effect that there were potential problems with the stability of the electrical network and the connection of further wind farms. I required that matter to be resolved. To date Western Power’s network business unit has not approved the application for technical connection to the network of the Mumbida wind farm. An opposition member interjected. Mr E.S. RIPPER: That is not the issue. It does not even have the technical approval to connect to the network, and the shadow Minister for Energy thinks I should be signing off on a project without the benefit of a tender process. I would like to know who has been speaking to the Opposition about this and what interests those people have. Why is the Opposition trying to pressure the Government to do a deal without a tender? Mr J.N. Hyde: Declare your shares in Pacific Hydro! Withdrawal of Remark Mr C.J. BARNETT: The member for Perth, by way of interjection, when referring to the member for Darling Range said, “Declare your shares in Pacific Hydro.” That is a clear attempt to impugn his reputation and imply a share ownership - which I suggest he does not have - that he has not complied with the accountability provisions under financial disclosure and that he has a conflict of interest. It is a clear attempt to impugn his reputation. I demand that you ask him to withdraw and apologise, Mr Speaker. The SPEAKER: The Leader of the Opposition can demand all he likes, but on the face of it, the suggestion does not impugn anyone’s character. However, the speaker of the comment will know whether that was in fact the intention of his interjection, and I ask him to withdraw if that was his intention. Mr J.N. HYDE: I was referring to all members of Parliament, but I will withdraw. Questions without Notice Resumed Several members interjected. The SPEAKER: I call to order the member for Perth and the Leader of the Opposition.
(3) Will the minister now approve the project subject to appropriate technical and contractual requirements and actually do something meaningful to encourage renewable power generation in Western Australia? Mr E.S. RIPPER replied: (1)-(3) I think the word that the shadow Minister for Energy needs to focus on in my response to him is “current”. I did get a recommendation from the former managing director of Western Power regarding the Mumbida wind project. However, by the time I had answered the member’s question I had had further discussions with the new managing director of Western Power. No longer did I have a current recommendation before me, because this matter was subject to ongoing reassessment by Western Power. I explained two reasons for it being subject to ongoing reassessment. I make no apology for the first reason, which was that the former managing director of Western Power wanted me to enter into a contract without the benefit of a tender. What does the House think about that? On the day that we have had a debate about tender processes, the shadow Minister for Energy has supported a government trading enterprise entering into a contract for turbines without going to tender. I make no apology for saying that was a problem. I was not prepared to approve a government trading enterprise entering into a contract without going to tender. If the Opposition thinks that is the correct way for a government trading enterprise to behave, it had better explain its view of tender probity. Secondly, I received technical advice from Western Power to the effect that there were potential problems with the stability of the electrical network and the connection of further wind farms. I required that matter to be resolved. To date Western Power’s network business unit has not approved the application for technical connection to the network of the Mumbida wind farm. An opposition member interjected. Mr E.S. RIPPER: That is not the issue. It does not even have the technical approval to connect to the network, and the shadow Minister for Energy thinks I should be signing off on a project without the benefit of a tender process. I would like to know who has been speaking to the Opposition about this and what interests those people have. Why is the Opposition trying to pressure the Government to do a deal without a tender? Mr J.N. Hyde: Declare your shares in Pacific Hydro! Withdrawal of Remark Mr C.J. BARNETT: The member for Perth, by way of interjection, when referring to the member for Darling Range said, “Declare your shares in Pacific Hydro.” That is a clear attempt to impugn his reputation and imply a share ownership - which I suggest he does not have - that he has not complied with the accountability provisions under financial disclosure and that he has a conflict of interest. It is a clear attempt to impugn his reputation. I demand that you ask him to withdraw and apologise, Mr Speaker. The SPEAKER: The Leader of the Opposition can demand all he likes, but on the face of it, the suggestion does not impugn anyone’s character. However, the speaker of the comment will know whether that was in fact the intention of his interjection, and I ask him to withdraw if that was his intention. Mr J.N. HYDE: I was referring to all members of Parliament, but I will withdraw. Questions without Notice Resumed Several members interjected. The SPEAKER: I call to order the member for Perth and the Leader of the Opposition.
Mr E.S. RIPPER replied: (1)-(3) I think the word that the shadow Minister for Energy needs to focus on in my response to him is “current”. I did get a recommendation from the former managing director of Western Power regarding the Mumbida wind project. However, by the time I had answered the member’s question I had had further discussions with the new managing director of Western Power. No longer did I have a current recommendation before me, because this matter was subject to ongoing reassessment by Western Power. I explained two reasons for it being subject to ongoing reassessment. I make no apology for the first reason, which was that the former managing director of Western Power wanted me to enter into a contract without the benefit of a tender. What does the House think about that? On the day that we have had a debate about tender processes, the shadow Minister for Energy has supported a government trading enterprise entering into a contract for turbines without going to tender. I make no apology for saying that was a problem. I was not prepared to approve a government trading enterprise entering into a contract without going to tender. If the Opposition thinks that is the correct way for a government trading enterprise to behave, it had better explain its view of tender probity. Secondly, I received technical advice from Western Power to the effect that there were potential problems with the stability of the electrical network and the connection of further wind farms. I required that matter to be resolved. To date Western Power’s network business unit has not approved the application for technical connection to the network of the Mumbida wind farm. An opposition member interjected. Mr E.S. RIPPER: That is not the issue. It does not even have the technical approval to connect to the network, and the shadow Minister for Energy thinks I should be signing off on a project without the benefit of a tender process. I would like to know who has been speaking to the Opposition about this and what interests those people have. Why is the Opposition trying to pressure the Government to do a deal without a tender? Mr J.N. Hyde: Declare your shares in Pacific Hydro! Withdrawal of Remark Mr C.J. BARNETT: The member for Perth, by way of interjection, when referring to the member for Darling Range said, “Declare your shares in Pacific Hydro.” That is a clear attempt to impugn his reputation and imply a share ownership - which I suggest he does not have - that he has not complied with the accountability provisions under financial disclosure and that he has a conflict of interest. It is a clear attempt to impugn his reputation. I demand that you ask him to withdraw and apologise, Mr Speaker. The SPEAKER: The Leader of the Opposition can demand all he likes, but on the face of it, the suggestion does not impugn anyone’s character. However, the speaker of the comment will know whether that was in fact the intention of his interjection, and I ask him to withdraw if that was his intention. Mr J.N. HYDE: I was referring to all members of Parliament, but I will withdraw. Questions without Notice Resumed Several members interjected. The SPEAKER: I call to order the member for Perth and the Leader of the Opposition.
(1)-(3) I think the word that the shadow Minister for Energy needs to focus on in my response to him is “current”. I did get a recommendation from the former managing director of Western Power regarding the Mumbida wind project. However, by the time I had answered the member’s question I had had further discussions with the new managing director of Western Power. No longer did I have a current recommendation before me, because this matter was subject to ongoing reassessment by Western Power. I explained two reasons for it being subject to ongoing reassessment. I make no apology for the first reason, which was that the former managing director of Western Power wanted me to enter into a contract without the benefit of a tender. What does the House think about that? On the day that we have had a debate about tender processes, the shadow Minister for Energy has supported a government trading enterprise entering into a contract for turbines without going to tender. I make no apology for saying that was a problem. I was not prepared to approve a government trading enterprise entering into a contract without going to tender. If the Opposition thinks that is the correct way for a government trading enterprise to behave, it had better explain its view of tender probity. Secondly, I received technical advice from Western Power to the effect that there were potential problems with the stability of the electrical network and the connection of further wind farms. I required that matter to be resolved. To date Western Power’s network business unit has not approved the application for technical connection to the network of the Mumbida wind farm. An opposition member interjected. Mr E.S. RIPPER: That is not the issue. It does not even have the technical approval to connect to the network, and the shadow Minister for Energy thinks I should be signing off on a project without the benefit of a tender process. I would like to know who has been speaking to the Opposition about this and what interests those people have. Why is the Opposition trying to pressure the Government to do a deal without a tender? Mr J.N. Hyde: Declare your shares in Pacific Hydro! Withdrawal of Remark Mr C.J. BARNETT: The member for Perth, by way of interjection, when referring to the member for Darling Range said, “Declare your shares in Pacific Hydro.” That is a clear attempt to impugn his reputation and imply a share ownership - which I suggest he does not have - that he has not complied with the accountability provisions under financial disclosure and that he has a conflict of interest. It is a clear attempt to impugn his reputation. I demand that you ask him to withdraw and apologise, Mr Speaker. The SPEAKER: The Leader of the Opposition can demand all he likes, but on the face of it, the suggestion does not impugn anyone’s character. However, the speaker of the comment will know whether that was in fact the intention of his interjection, and I ask him to withdraw if that was his intention. Mr J.N. HYDE: I was referring to all members of Parliament, but I will withdraw. Questions without Notice Resumed Several members interjected. The SPEAKER: I call to order the member for Perth and the Leader of the Opposition.
Secondly, I received technical advice from Western Power to the effect that there were potential problems with the stability of the electrical network and the connection of further wind farms. I required that matter to be resolved. To date Western Power’s network business unit has not approved the application for technical connection to the network of the Mumbida wind farm.
Mr E.S. RIPPER: That is not the issue. It does not even have the technical approval to connect to the network, and the shadow Minister for Energy thinks I should be signing off on a project without the benefit of a tender process. I would like to know who has been speaking to the Opposition about this and what interests those people have. Why is the Opposition trying to pressure the Government to do a deal without a tender? Mr J.N. Hyde: Declare your shares in Pacific Hydro! Withdrawal of Remark Mr C.J. BARNETT: The member for Perth, by way of interjection, when referring to the member for Darling Range said, “Declare your shares in Pacific Hydro.” That is a clear attempt to impugn his reputation and imply a share ownership - which I suggest he does not have - that he has not complied with the accountability provisions under financial disclosure and that he has a conflict of interest. It is a clear attempt to impugn his reputation. I demand that you ask him to withdraw and apologise, Mr Speaker. The SPEAKER: The Leader of the Opposition can demand all he likes, but on the face of it, the suggestion does not impugn anyone’s character. However, the speaker of the comment will know whether that was in fact the intention of his interjection, and I ask him to withdraw if that was his intention. Mr J.N. HYDE: I was referring to all members of Parliament, but I will withdraw. Questions without Notice Resumed Several members interjected. The SPEAKER: I call to order the member for Perth and the Leader of the Opposition.
Mr J.N. Hyde: Declare your shares in Pacific Hydro! Withdrawal of Remark Mr C.J. BARNETT: The member for Perth, by way of interjection, when referring to the member for Darling Range said, “Declare your shares in Pacific Hydro.” That is a clear attempt to impugn his reputation and imply a share ownership - which I suggest he does not have - that he has not complied with the accountability provisions under financial disclosure and that he has a conflict of interest. It is a clear attempt to impugn his reputation. I demand that you ask him to withdraw and apologise, Mr Speaker. The SPEAKER: The Leader of the Opposition can demand all he likes, but on the face of it, the suggestion does not impugn anyone’s character. However, the speaker of the comment will know whether that was in fact the intention of his interjection, and I ask him to withdraw if that was his intention. Mr J.N. HYDE: I was referring to all members of Parliament, but I will withdraw. Questions without Notice Resumed Several members interjected. The SPEAKER: I call to order the member for Perth and the Leader of the Opposition.
The SPEAKER: The Leader of the Opposition can demand all he likes, but on the face of it, the suggestion does not impugn anyone’s character. However, the speaker of the comment will know whether that was in fact the intention of his interjection, and I ask him to withdraw if that was his intention. Mr J.N. HYDE: I was referring to all members of Parliament, but I will withdraw. Questions without Notice Resumed Several members interjected. The SPEAKER: I call to order the member for Perth and the Leader of the Opposition.
Mr J.N. HYDE: I was referring to all members of Parliament, but I will withdraw. Questions without Notice Resumed Several members interjected. The SPEAKER: I call to order the member for Perth and the Leader of the Opposition.
The SPEAKER: I call to order the member for Perth and the Leader of the Opposition.

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