❓ Mr. Redman questions the Minister for Energy regarding funding for the Albany wave energy project, specifically concerning Carnegie Clean Energy's capacity to deliver the project and the timing of funding relative to capacity assessment. The Minister acknowledges the concerns and cites changes to Commonwealth R&D taxation arrangements as a contributing factor.
AnsweredQoN 725Legislative Assembly
QuestionView source ↗
ALBANY WAVE ENERGY
PROJECT
725. Mr D.T. REDMAN to the Minister for Energy:
Mr Speaker, can I just have your
indulgence, as others have had, and congratulate the Eagles on their win. Along
with my colleagues on the Economics and Industry Standing Committee, I had the
good fortune to watch the game in New York, and there were just enough
Collingwood supporters to make it enjoyable!
I refer to the approval given by the
Minister for Regional Development to pay Carnegie Clean Energy $2.6 million as
a newly agreed milestone payment towards the Albany wave farm energy project.
(1) Can the Minister
for Energy confirm that the Minister for Regional Development has not yet
confirmed Carnegie's capacity to deliver the project?
(2) Is it normal
government practice to provide funding to projects prior to determining the
financial capacity of a contracted company to deliver the project?
PROJECT
725. Mr D.T. REDMAN to the Minister for Energy:
Mr Speaker, can I just have your
indulgence, as others have had, and congratulate the Eagles on their win. Along
with my colleagues on the Economics and Industry Standing Committee, I had the
good fortune to watch the game in New York, and there were just enough
Collingwood supporters to make it enjoyable!
I refer to the approval given by the
Minister for Regional Development to pay Carnegie Clean Energy $2.6 million as
a newly agreed milestone payment towards the Albany wave farm energy project.
(1) Can the Minister
for Energy confirm that the Minister for Regional Development has not yet
confirmed Carnegie's capacity to deliver the project?
(2) Is it normal
government practice to provide funding to projects prior to determining the
financial capacity of a contracted company to deliver the project?
AnswerView source ↗
(1)–(2) Yes,
I can, and no doubt very shortly we will have a fulsome debate on this issue.
Can the member just read the first part of the question back to me?
Mr
D.T. Redman : Can you confirm that
the minister has not yet confirmed Carnegie's capacity to deliver the
project?
Mr B.S. WYATT : That is what
the minister has asked for, now that there has been change to the commonwealth
government's research and development taxation arrangements. The minister
has requested that. There was a split of the milestone payment because,
ultimately, we are concerned that we did not want to pay the full milestone
payment. So that was effectively split in half. That will go through in some
detail now to ensure that those contractual obligations that had been done were
therefore paid for. That is what is being paid for.
What was the final part of the
question?
Mr D.T. Redman : Is it normal
government practice to provide funding prior to determining the capacity of the
company to deliver?
Mr B.S. WYATT : We certainly —
Mr D.T. Redman : You signed
off on $2.6 million.
Mr B.S. WYATT : Hang on. Yes,
of course, but let us be frank here. We reached an agreement with a credible company.
Several members interjected.
Mr B.S. WYATT : I find it
interesting that I get the laugh. I have never had a question from the Liberal
Party on this—ever. I have had all my questions from the member for
Warren–Blackwood, who, I must admit, is very good on this particular
issue.
Mr D.T. Redman : I am the energy spokesman for the
Nationals.
Mr B.S. WYATT : Well done.
I want to make this point. The agreement was done—again,
as I will point out in just a minute—prior to the commonwealth
government changing the R&D taxation arrangements. I could not foresee
that. If somebody could have foreseen that—like somebody in the
opposition—I am sure they would have pointed that out to me in the
chamber. The commonwealth government changed a very important taxation
structure. I will make this point: it has had an impact on a range of different
companies in Western Australia. I note the commonwealth government made
specific exemptions for some industries important to New South Wales from that
R&D change but has not made any exemptions for Western Australia. That is something
that I will continue to pursue at a ministerial level with my colleagues. But
no doubt we will go through this in some detail. I think I have answered those
two parts of the question.
I can, and no doubt very shortly we will have a fulsome debate on this issue.
Can the member just read the first part of the question back to me?
Mr
D.T. Redman : Can you confirm that
the minister has not yet confirmed Carnegie's capacity to deliver the
project?
Mr B.S. WYATT : That is what
the minister has asked for, now that there has been change to the commonwealth
government's research and development taxation arrangements. The minister
has requested that. There was a split of the milestone payment because,
ultimately, we are concerned that we did not want to pay the full milestone
payment. So that was effectively split in half. That will go through in some
detail now to ensure that those contractual obligations that had been done were
therefore paid for. That is what is being paid for.
What was the final part of the
question?
Mr D.T. Redman : Is it normal
government practice to provide funding prior to determining the capacity of the
company to deliver?
Mr B.S. WYATT : We certainly —
Mr D.T. Redman : You signed
off on $2.6 million.
Mr B.S. WYATT : Hang on. Yes,
of course, but let us be frank here. We reached an agreement with a credible company.
Several members interjected.
Mr B.S. WYATT : I find it
interesting that I get the laugh. I have never had a question from the Liberal
Party on this—ever. I have had all my questions from the member for
Warren–Blackwood, who, I must admit, is very good on this particular
issue.
Mr D.T. Redman : I am the energy spokesman for the
Nationals.
Mr B.S. WYATT : Well done.
I want to make this point. The agreement was done—again,
as I will point out in just a minute—prior to the commonwealth
government changing the R&D taxation arrangements. I could not foresee
that. If somebody could have foreseen that—like somebody in the
opposition—I am sure they would have pointed that out to me in the
chamber. The commonwealth government changed a very important taxation
structure. I will make this point: it has had an impact on a range of different
companies in Western Australia. I note the commonwealth government made
specific exemptions for some industries important to New South Wales from that
R&D change but has not made any exemptions for Western Australia. That is something
that I will continue to pursue at a ministerial level with my colleagues. But
no doubt we will go through this in some detail. I think I have answered those
two parts of the question.
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