Hon Jon Ford questions the Premier regarding local government rates for the Yandicoogina iron ore project extension, specifically concerning the Shire of Ashburton and the lack of a rates clause in the approval. The Premier clarifies the project's location and outlines the government's policy on gross rental valuation for mining projects.

AnsweredQoN 1008Legislative Council
Asked
28 November 2012
Portfolio
Leader of the House representing the Premier

QuestionView source ↗

YANDICOOGINA
IRON ORE PROJECT — LOCAL GOVERNMENT RATES
1008. Hon JON FORD to the Leader of the House representing
the Premier:
I refer to the Premier's media statement of 23
November in relation to state government approval for an extension to the
Yandicoogina iron ore project.
(1) Did the
approval include provision for the local government authority to levy rates on
the project; and, if not, why not?
(2) Was the
inclusion of such a provision raised during the negotiations for the approval;
and, if not, why did the government not raise it?
(3) If no to
(1), will the government provide a grant to the Shire of Ashburton to
compensate for lost rates revenue resulting from the government's
failure to include a local government authority rates clause in the approval?
(4) If no to (3), why not?

AnswerView source ↗

I thank the member for some notice of the question.
(1) No. The
Iron Ore (Yandicoogina) Agreement Act 1996 does not make provision for rates to
be levied.
(2)–(3)
No. The Yandi Sustaining Project is located within the Shire of East Pilbara,
not the Shire of Ashburton. In November 2011, the government introduced the ''Application
of Gross Rental Valuation to Mining, Petroleum and Resource Interests''
policy. This policy will be trialled for three years from 1 July 2012. The
policy allows local governments to apply rates based on gross rental valuation
to defined improvements. These include administration, recreation and
accommodation facilities, and maintenance workshops on all land within
tenements under the state's mining and petroleum law. Projects that
operate under existing state agreements and are currently exempt from rates may
apply the policy as part of their respective agreement variation processes. In
addition, nothing in the policy prevents a local government and a proponent
from agreeing that other types of improvements shall also be included for gross
rental valuation.
(4) No. The
Shire of East Pilbara was invited to comment on the proposal. On 7 August 2012,
the shire responded and raised no objections to the proposal.

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