❓ A parliamentary question regarding a disputed royalty underpayment by BHP, focusing on the legitimacy of deductions claimed under State Agreements and the differences between State Agreements and the Mining Act regarding deductible costs.
AnsweredQoN 4829Legislative Assembly
Asked
20 February 2019
Member
Portfolio
Mines and Petroleum; Energy; Industrial Relations
QuestionView source ↗
I refer to the disputed underpayment of Royalty by BHP and ask: (a) Does the disputed underpayment relate simply to the retrospective component of the claim or is BHP challenging the entire legitimacy of the government's claim that the deduction in question is not valid; (b) Is the wording in the relevant section of BHP’s State Agreement that defines deductable costs and charges significant to the claim by BHP that it is acting legitimately; (c) Is it correct that it makes no difference whether BHP was under a State agreement or the Mining Act to the government's claim they were underpaying royalties: (i) If yes, why were the Nationals advised that the claim hinges around “Incurred and Payable” costs and charges; (d) What is the Minister's understanding as to why the wording in the Mining Act that relates to legitimate deductions is different to that in old state agreements as they relate to the iron ore industry; and (e) Are there any circumstances where this difference in wording leads to a difference in valid claims by a company: (i) If yes, can the Minister list the circumstances?
AnswerView source ↗
Answered
19 March 2019
Responded by
Minister for Mines and Petroleum; Energy; Industrial Relations
Response time
5 days
(a) The dispute relates to whether the sales commission deductions claimed by BHP were an allowable deduction under the State Agreements.
(b) This question seeks legal advice.
(c) Royalty is paid according to the relevant legislation that applies. In this case the relevant legislation is the State Agreement Acts.
(i) Not applicable
(d) This question seeks an opinion.
(e) This question seeks legal advice.
(i) Not applicable.
(b) This question seeks legal advice.
(c) Royalty is paid according to the relevant legislation that applies. In this case the relevant legislation is the State Agreement Acts.
(i) Not applicable
(d) This question seeks an opinion.
(e) This question seeks legal advice.
(i) Not applicable.
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