Mr Ripper asks for a guarantee that a contract for electricity supply to the west Kimberley will not be signed before the release of a report on a tidal power project. Mr Barnett avoids giving a direct guarantee, outlining the tender process and expressing concerns about overriding it for tidal energy.

AnsweredQoN 9Legislative Assembly
Asked
8 August 2000
Member
Portfolio
Energy

QuestionView source ↗

Will the minister guarantee that a contract for the supply of electricity to the west Kimberley region will not be signed before the release of the Commonwealth Government's due diligence report on the tidal power project; and if not, why not? Mr BARNETT

AnswerView source ↗

It does not matter how many times I say it, members of Parliament and the media do not seem to understand the process for energy supply, into the Kimberley region. Dr Gallop: Is this a lecture to your colleagues? Mr BARNETT: Yes, I think a few of them could probably listen. Dr Gallop: You are a bit tetchy. Mr BARNETT: No. There was a formal tender process. Ten companies submitted proposals. The number of companies came down to four, two and then one. Energy Equity-Woodside is the preferred supplier. It was selected through a properly conducted tender process. However, because of the public interest in the issue of tidal energy, I put into place a further study to look at tidal energy versus the best gas option. This was undertaken by Dr Frank Reid, who is the Managing Director of the Australian Cooperative Research Centre for Renewable Energy Ltd. He was a clearly chosen person. He concluded that gas was the best option. The current position is that Energy Equity-Woodside is in commercial negotiations with Western Power about a power purchase agreement. That will probably take another week or so to be concluded; some issues are still being debated. However, when that agreement is concluded, it will go to the Board of Western Power. The company directors will decide whether it is a good deal or a bad deal. I place no pressure on them. If the agreement is accepted by the Board of Western Power, it will then come to me. If I agree, I will take a recommendation to Cabinet. That is the process. Dr Gallop: So you won't give a guarantee. Mr BARNETT: I am just answering the question. When the recommendation goes to Cabinet, if it is for gas, Cabinet can endorse or reject it. If Cabinet were to decide that tidal energy should go ahead, which is what the Labor Party policy seems to be saying, the only way that could happen would be for the Minister for Energy to instruct the Board of Western Power to sign a $300m contract for tidal power supply. As Minister for Energy, I will not do that, because that was what the 1980s and WA Inc was all about. It was all about ignoring competitive tender processes and ministers of the Crown doing things for political, vote-catching and mates' reasons instead of following proper competitive tender processes. Whatever the merits of tidal energy, this State should not forget the lessons of the 1980s. Unfortunately, members of the media have short memories and have forgotten. Dr Gallop: You are a joke on this. Mr BARNETT: Members opposite laugh. However, the Labor Party's policy on this matter is to give a $300m contract plus $100m of taxpayers' money to a private company that did not win the process.
Mr BARNETT replied: It does not matter how many times I say it, members of Parliament and the media do not seem to understand the process for energy supply, into the Kimberley region. Dr Gallop: Is this a lecture to your colleagues? Mr BARNETT: Yes, I think a few of them could probably listen. Dr Gallop: You are a bit tetchy. Mr BARNETT: No. There was a formal tender process. Ten companies submitted proposals. The number of companies came down to four, two and then one. Energy Equity-Woodside is the preferred supplier. It was selected through a properly conducted tender process. However, because of the public interest in the issue of tidal energy, I put into place a further study to look at tidal energy versus the best gas option. This was undertaken by Dr Frank Reid, who is the Managing Director of the Australian Cooperative Research Centre for Renewable Energy Ltd. He was a clearly chosen person. He concluded that gas was the best option. The current position is that Energy Equity-Woodside is in commercial negotiations with Western Power about a power purchase agreement. That will probably take another week or so to be concluded; some issues are still being debated. However, when that agreement is concluded, it will go to the Board of Western Power. The company directors will decide whether it is a good deal or a bad deal. I place no pressure on them. If the agreement is accepted by the Board of Western Power, it will then come to me. If I agree, I will take a recommendation to Cabinet. That is the process. Dr Gallop: So you won't give a guarantee. Mr BARNETT: I am just answering the question. When the recommendation goes to Cabinet, if it is for gas, Cabinet can endorse or reject it. If Cabinet were to decide that tidal energy should go ahead, which is what the Labor Party policy seems to be saying, the only way that could happen would be for the Minister for Energy to instruct the Board of Western Power to sign a $300m contract for tidal power supply. As Minister for Energy, I will not do that, because that was what the 1980s and WA Inc was all about. It was all about ignoring competitive tender processes and ministers of the Crown doing things for political, vote-catching and mates' reasons instead of following proper competitive tender processes. Whatever the merits of tidal energy, this State should not forget the lessons of the 1980s. Unfortunately, members of the media have short memories and have forgotten. Dr Gallop: You are a joke on this. Mr BARNETT: Members opposite laugh. However, the Labor Party's policy on this matter is to give a $300m contract plus $100m of taxpayers' money to a private company that did not win the process.
It does not matter how many times I say it, members of Parliament and the media do not seem to understand the process for energy supply, into the Kimberley region. Dr Gallop: Is this a lecture to your colleagues? Mr BARNETT: Yes, I think a few of them could probably listen. Dr Gallop: You are a bit tetchy. Mr BARNETT: No. There was a formal tender process. Ten companies submitted proposals. The number of companies came down to four, two and then one. Energy Equity-Woodside is the preferred supplier. It was selected through a properly conducted tender process. However, because of the public interest in the issue of tidal energy, I put into place a further study to look at tidal energy versus the best gas option. This was undertaken by Dr Frank Reid, who is the Managing Director of the Australian Cooperative Research Centre for Renewable Energy Ltd. He was a clearly chosen person. He concluded that gas was the best option. The current position is that Energy Equity-Woodside is in commercial negotiations with Western Power about a power purchase agreement. That will probably take another week or so to be concluded; some issues are still being debated. However, when that agreement is concluded, it will go to the Board of Western Power. The company directors will decide whether it is a good deal or a bad deal. I place no pressure on them. If the agreement is accepted by the Board of Western Power, it will then come to me. If I agree, I will take a recommendation to Cabinet. That is the process. Dr Gallop: So you won't give a guarantee. Mr BARNETT: I am just answering the question. When the recommendation goes to Cabinet, if it is for gas, Cabinet can endorse or reject it. If Cabinet were to decide that tidal energy should go ahead, which is what the Labor Party policy seems to be saying, the only way that could happen would be for the Minister for Energy to instruct the Board of Western Power to sign a $300m contract for tidal power supply. As Minister for Energy, I will not do that, because that was what the 1980s and WA Inc was all about. It was all about ignoring competitive tender processes and ministers of the Crown doing things for political, vote-catching and mates' reasons instead of following proper competitive tender processes. Whatever the merits of tidal energy, this State should not forget the lessons of the 1980s. Unfortunately, members of the media have short memories and have forgotten. Dr Gallop: You are a joke on this. Mr BARNETT: Members opposite laugh. However, the Labor Party's policy on this matter is to give a $300m contract plus $100m of taxpayers' money to a private company that did not win the process.
Dr Gallop: Is this a lecture to your colleagues? Mr BARNETT: Yes, I think a few of them could probably listen. Dr Gallop: You are a bit tetchy. Mr BARNETT: No. There was a formal tender process. Ten companies submitted proposals. The number of companies came down to four, two and then one. Energy Equity-Woodside is the preferred supplier. It was selected through a properly conducted tender process. However, because of the public interest in the issue of tidal energy, I put into place a further study to look at tidal energy versus the best gas option. This was undertaken by Dr Frank Reid, who is the Managing Director of the Australian Cooperative Research Centre for Renewable Energy Ltd. He was a clearly chosen person. He concluded that gas was the best option. The current position is that Energy Equity-Woodside is in commercial negotiations with Western Power about a power purchase agreement. That will probably take another week or so to be concluded; some issues are still being debated. However, when that agreement is concluded, it will go to the Board of Western Power. The company directors will decide whether it is a good deal or a bad deal. I place no pressure on them. If the agreement is accepted by the Board of Western Power, it will then come to me. If I agree, I will take a recommendation to Cabinet. That is the process. Dr Gallop: So you won't give a guarantee. Mr BARNETT: I am just answering the question. When the recommendation goes to Cabinet, if it is for gas, Cabinet can endorse or reject it. If Cabinet were to decide that tidal energy should go ahead, which is what the Labor Party policy seems to be saying, the only way that could happen would be for the Minister for Energy to instruct the Board of Western Power to sign a $300m contract for tidal power supply. As Minister for Energy, I will not do that, because that was what the 1980s and WA Inc was all about. It was all about ignoring competitive tender processes and ministers of the Crown doing things for political, vote-catching and mates' reasons instead of following proper competitive tender processes. Whatever the merits of tidal energy, this State should not forget the lessons of the 1980s. Unfortunately, members of the media have short memories and have forgotten. Dr Gallop: You are a joke on this. Mr BARNETT: Members opposite laugh. However, the Labor Party's policy on this matter is to give a $300m contract plus $100m of taxpayers' money to a private company that did not win the process.
Mr BARNETT: Yes, I think a few of them could probably listen. Dr Gallop: You are a bit tetchy. Mr BARNETT: No. There was a formal tender process. Ten companies submitted proposals. The number of companies came down to four, two and then one. Energy Equity-Woodside is the preferred supplier. It was selected through a properly conducted tender process. However, because of the public interest in the issue of tidal energy, I put into place a further study to look at tidal energy versus the best gas option. This was undertaken by Dr Frank Reid, who is the Managing Director of the Australian Cooperative Research Centre for Renewable Energy Ltd. He was a clearly chosen person. He concluded that gas was the best option. The current position is that Energy Equity-Woodside is in commercial negotiations with Western Power about a power purchase agreement. That will probably take another week or so to be concluded; some issues are still being debated. However, when that agreement is concluded, it will go to the Board of Western Power. The company directors will decide whether it is a good deal or a bad deal. I place no pressure on them. If the agreement is accepted by the Board of Western Power, it will then come to me. If I agree, I will take a recommendation to Cabinet. That is the process. Dr Gallop: So you won't give a guarantee. Mr BARNETT: I am just answering the question. When the recommendation goes to Cabinet, if it is for gas, Cabinet can endorse or reject it. If Cabinet were to decide that tidal energy should go ahead, which is what the Labor Party policy seems to be saying, the only way that could happen would be for the Minister for Energy to instruct the Board of Western Power to sign a $300m contract for tidal power supply. As Minister for Energy, I will not do that, because that was what the 1980s and WA Inc was all about. It was all about ignoring competitive tender processes and ministers of the Crown doing things for political, vote-catching and mates' reasons instead of following proper competitive tender processes. Whatever the merits of tidal energy, this State should not forget the lessons of the 1980s. Unfortunately, members of the media have short memories and have forgotten. Dr Gallop: You are a joke on this. Mr BARNETT: Members opposite laugh. However, the Labor Party's policy on this matter is to give a $300m contract plus $100m of taxpayers' money to a private company that did not win the process.
Dr Gallop: You are a bit tetchy. Mr BARNETT: No. There was a formal tender process. Ten companies submitted proposals. The number of companies came down to four, two and then one. Energy Equity-Woodside is the preferred supplier. It was selected through a properly conducted tender process. However, because of the public interest in the issue of tidal energy, I put into place a further study to look at tidal energy versus the best gas option. This was undertaken by Dr Frank Reid, who is the Managing Director of the Australian Cooperative Research Centre for Renewable Energy Ltd. He was a clearly chosen person. He concluded that gas was the best option. The current position is that Energy Equity-Woodside is in commercial negotiations with Western Power about a power purchase agreement. That will probably take another week or so to be concluded; some issues are still being debated. However, when that agreement is concluded, it will go to the Board of Western Power. The company directors will decide whether it is a good deal or a bad deal. I place no pressure on them. If the agreement is accepted by the Board of Western Power, it will then come to me. If I agree, I will take a recommendation to Cabinet. That is the process. Dr Gallop: So you won't give a guarantee. Mr BARNETT: I am just answering the question. When the recommendation goes to Cabinet, if it is for gas, Cabinet can endorse or reject it. If Cabinet were to decide that tidal energy should go ahead, which is what the Labor Party policy seems to be saying, the only way that could happen would be for the Minister for Energy to instruct the Board of Western Power to sign a $300m contract for tidal power supply. As Minister for Energy, I will not do that, because that was what the 1980s and WA Inc was all about. It was all about ignoring competitive tender processes and ministers of the Crown doing things for political, vote-catching and mates' reasons instead of following proper competitive tender processes. Whatever the merits of tidal energy, this State should not forget the lessons of the 1980s. Unfortunately, members of the media have short memories and have forgotten. Dr Gallop: You are a joke on this. Mr BARNETT: Members opposite laugh. However, the Labor Party's policy on this matter is to give a $300m contract plus $100m of taxpayers' money to a private company that did not win the process.
Mr BARNETT: No. There was a formal tender process. Ten companies submitted proposals. The number of companies came down to four, two and then one. Energy Equity-Woodside is the preferred supplier. It was selected through a properly conducted tender process. However, because of the public interest in the issue of tidal energy, I put into place a further study to look at tidal energy versus the best gas option. This was undertaken by Dr Frank Reid, who is the Managing Director of the Australian Cooperative Research Centre for Renewable Energy Ltd. He was a clearly chosen person. He concluded that gas was the best option. The current position is that Energy Equity-Woodside is in commercial negotiations with Western Power about a power purchase agreement. That will probably take another week or so to be concluded; some issues are still being debated. However, when that agreement is concluded, it will go to the Board of Western Power. The company directors will decide whether it is a good deal or a bad deal. I place no pressure on them. If the agreement is accepted by the Board of Western Power, it will then come to me. If I agree, I will take a recommendation to Cabinet. That is the process. Dr Gallop: So you won't give a guarantee. Mr BARNETT: I am just answering the question. When the recommendation goes to Cabinet, if it is for gas, Cabinet can endorse or reject it. If Cabinet were to decide that tidal energy should go ahead, which is what the Labor Party policy seems to be saying, the only way that could happen would be for the Minister for Energy to instruct the Board of Western Power to sign a $300m contract for tidal power supply. As Minister for Energy, I will not do that, because that was what the 1980s and WA Inc was all about. It was all about ignoring competitive tender processes and ministers of the Crown doing things for political, vote-catching and mates' reasons instead of following proper competitive tender processes. Whatever the merits of tidal energy, this State should not forget the lessons of the 1980s. Unfortunately, members of the media have short memories and have forgotten. Dr Gallop: You are a joke on this. Mr BARNETT: Members opposite laugh. However, the Labor Party's policy on this matter is to give a $300m contract plus $100m of taxpayers' money to a private company that did not win the process.
The current position is that Energy Equity-Woodside is in commercial negotiations with Western Power about a power purchase agreement. That will probably take another week or so to be concluded; some issues are still being debated. However, when that agreement is concluded, it will go to the Board of Western Power. The company directors will decide whether it is a good deal or a bad deal. I place no pressure on them. If the agreement is accepted by the Board of Western Power, it will then come to me. If I agree, I will take a recommendation to Cabinet. That is the process. Dr Gallop: So you won't give a guarantee. Mr BARNETT: I am just answering the question. When the recommendation goes to Cabinet, if it is for gas, Cabinet can endorse or reject it. If Cabinet were to decide that tidal energy should go ahead, which is what the Labor Party policy seems to be saying, the only way that could happen would be for the Minister for Energy to instruct the Board of Western Power to sign a $300m contract for tidal power supply. As Minister for Energy, I will not do that, because that was what the 1980s and WA Inc was all about. It was all about ignoring competitive tender processes and ministers of the Crown doing things for political, vote-catching and mates' reasons instead of following proper competitive tender processes. Whatever the merits of tidal energy, this State should not forget the lessons of the 1980s. Unfortunately, members of the media have short memories and have forgotten. Dr Gallop: You are a joke on this. Mr BARNETT: Members opposite laugh. However, the Labor Party's policy on this matter is to give a $300m contract plus $100m of taxpayers' money to a private company that did not win the process.
Dr Gallop: So you won't give a guarantee. Mr BARNETT: I am just answering the question. When the recommendation goes to Cabinet, if it is for gas, Cabinet can endorse or reject it. If Cabinet were to decide that tidal energy should go ahead, which is what the Labor Party policy seems to be saying, the only way that could happen would be for the Minister for Energy to instruct the Board of Western Power to sign a $300m contract for tidal power supply. As Minister for Energy, I will not do that, because that was what the 1980s and WA Inc was all about. It was all about ignoring competitive tender processes and ministers of the Crown doing things for political, vote-catching and mates' reasons instead of following proper competitive tender processes. Whatever the merits of tidal energy, this State should not forget the lessons of the 1980s. Unfortunately, members of the media have short memories and have forgotten. Dr Gallop: You are a joke on this. Mr BARNETT: Members opposite laugh. However, the Labor Party's policy on this matter is to give a $300m contract plus $100m of taxpayers' money to a private company that did not win the process.
Mr BARNETT: I am just answering the question. When the recommendation goes to Cabinet, if it is for gas, Cabinet can endorse or reject it. If Cabinet were to decide that tidal energy should go ahead, which is what the Labor Party policy seems to be saying, the only way that could happen would be for the Minister for Energy to instruct the Board of Western Power to sign a $300m contract for tidal power supply. As Minister for Energy, I will not do that, because that was what the 1980s and WA Inc was all about. It was all about ignoring competitive tender processes and ministers of the Crown doing things for political, vote-catching and mates' reasons instead of following proper competitive tender processes. Whatever the merits of tidal energy, this State should not forget the lessons of the 1980s. Unfortunately, members of the media have short memories and have forgotten. Dr Gallop: You are a joke on this. Mr BARNETT: Members opposite laugh. However, the Labor Party's policy on this matter is to give a $300m contract plus $100m of taxpayers' money to a private company that did not win the process.
Whatever the merits of tidal energy, this State should not forget the lessons of the 1980s. Unfortunately, members of the media have short memories and have forgotten. Dr Gallop: You are a joke on this. Mr BARNETT: Members opposite laugh. However, the Labor Party's policy on this matter is to give a $300m contract plus $100m of taxpayers' money to a private company that did not win the process.
Dr Gallop: You are a joke on this. Mr BARNETT: Members opposite laugh. However, the Labor Party's policy on this matter is to give a $300m contract plus $100m of taxpayers' money to a private company that did not win the process.
Mr BARNETT: Members opposite laugh. However, the Labor Party's policy on this matter is to give a $300m contract plus $100m of taxpayers' money to a private company that did not win the process.

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