❓ Opposition asks about the impact of US trade restrictions on a radio systems replacement contract for the Public Transport Authority. The Minister acknowledges the issue and outlines steps taken to mitigate the impact, but avoids providing specific dates or financial figures.
AnsweredQoN 296Legislative Council
QuestionView source ↗
TRANSPORT — RADIO
SYSTEMS REPLACEMENT CONTRACT
296. Hon PETER COLLIER to
the minister representing the Minister for Transport:
I
refer to the minister's media release on Friday, 27 March 2020 titled ''Radio
Systems Replacement contract update''.
(1) When did the
minister first become aware of trade restrictions that would impact on the
ability of the consortium to deliver the contract?
(2) When was the
Public Transport Authority first advised by the consortium that the trade
restrictions would impact on its ability to deliver the contract?
(3) How much funding has been paid
to date to the consortium under the existing contract?
SYSTEMS REPLACEMENT CONTRACT
296. Hon PETER COLLIER to
the minister representing the Minister for Transport:
I
refer to the minister's media release on Friday, 27 March 2020 titled ''Radio
Systems Replacement contract update''.
(1) When did the
minister first become aware of trade restrictions that would impact on the
ability of the consortium to deliver the contract?
(2) When was the
Public Transport Authority first advised by the consortium that the trade
restrictions would impact on its ability to deliver the contract?
(3) How much funding has been paid
to date to the consortium under the existing contract?
AnswerView source ↗
I thank the Leader of the Opposition
for some notice of the question.
(1)–(3) As per the media statement of 27 March 2020, the
HUGL consortium had provided earlier assurances to the state government
that it could deliver the project in light of trade restrictions imposed by the
United States government, but further restrictions imposed in August 2019 had a
greater impact. Since August 2019, the parties have been working to identify
options to mitigate the effect of the trade restrictions. Work was undertaken
on whether new arrangements could be created that would allow the contract to
be performed by the parties under a different structure. The parties also
monitored whether the trade restrictions were likely to be lifted by the US
government as part of its trade negotiations with China. A similar restriction
by the US government against ZTE, another Chinese telecommunications company,
had been lifted. The sum claims payable for work done to date under the
contract are yet to be resolved.
for some notice of the question.
(1)–(3) As per the media statement of 27 March 2020, the
HUGL consortium had provided earlier assurances to the state government
that it could deliver the project in light of trade restrictions imposed by the
United States government, but further restrictions imposed in August 2019 had a
greater impact. Since August 2019, the parties have been working to identify
options to mitigate the effect of the trade restrictions. Work was undertaken
on whether new arrangements could be created that would allow the contract to
be performed by the parties under a different structure. The parties also
monitored whether the trade restrictions were likely to be lifted by the US
government as part of its trade negotiations with China. A similar restriction
by the US government against ZTE, another Chinese telecommunications company,
had been lifted. The sum claims payable for work done to date under the
contract are yet to be resolved.
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