Question regarding Verve Energy's write-down of the Muja Power Station refurbishment project and the Minister's response, which is challenged by the questioner, leading to a point of order and subsequent disruption in parliament.

AnsweredQoN 274Legislative Assembly
Asked
10 April 2014
Portfolio
Energy

QuestionView source ↗

MUJA POWER STATION — REFURBISHMENT —
KPMG REPORT
274. Mr W.J. JOHNSTON to the Minister for Energy:
I have a supplementary question. Is
the minister aware that in notes 9 and 18 of the 2012–13 Verve Energy
annual report, Verve had written down this project by $75 536 000—that
is, the losses that were incurred in that financial year?

AnswerView source ↗

What Verve Energy did in that
estimate was because it was closed out of the books on 30 June 2013. At that
time we had made a decision to cease redevelopment of the project. As is
appropriate in accounting, that was the assumption Verve made at that time.
Verve made an assumption that the project had ceased. All it was going to do was
operate units 3 and 4; units 1 and 2 were not —
Point of Order
Mr W.J. JOHNSTON :
There is an obligation on ministers to tell the truth. The minister is
providing an explanation that is not true. Is there anything that we can do
about the minister not telling the truth in the chamber?
The SPEAKER :
Member for Cannington, I do not accept that as a point of order.
Questions without Notice Resumed
Dr M.D. NAHAN : I
could quote somebody about not hearing the truth; nonetheless, I will get back
to it.
Ms M.M. Quirk interjected.
Suspension of Member
The
SPEAKER : Member for Girrawheen, I have now called you to order for the
fourth time. Under standing order 48, will you please leave the chamber, and
can you do so quickly.
[The member for Girrawheen left the
chamber.]
Questions without Notice Resumed
Dr
M.D. NAHAN : The Verve board at that time correctly made the assessment,
when it closed down the books on 30 June 2013, that it was a partially
completed project, with units 3 and 4 operating and units 1 and 2 not being refurbished.
At that time it would have been a losing project; that is why we went ahead and
refreshed it. I expect and am confident that what is now Synergy will do
another evaluation—an assessment—of the project when it closes
the books down for this year, and it will be starkly different.

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