❓ A parliamentary question regarding a $260 million capital expenditure allegedly awarded to AJ Lucas while suspended from trading. The Minister refutes the claim, clarifies the expenditure is part of a larger desalination plant project, and defends AJ Lucas's financial standing and project involvement.
AnsweredQoN 359Legislative Assembly
QuestionView source ↗
WATER — CAPITAL EXPENDITURE —
AJ LUCAS
359. Mr A.P. JACOB to the Minister for Water:
I refer to comments made in this house by the member for
Cockburn on 14 June that $260 million of capital expenditure has been awarded
to a company called AJ Lucas while it was suspended from trading on the stock
exchange. Could the minister please respond to these issues raised by the
member and is he aware of any alternative water policies?
AJ LUCAS
359. Mr A.P. JACOB to the Minister for Water:
I refer to comments made in this house by the member for
Cockburn on 14 June that $260 million of capital expenditure has been awarded
to a company called AJ Lucas while it was suspended from trading on the stock
exchange. Could the minister please respond to these issues raised by the
member and is he aware of any alternative water policies?
AnswerView source ↗
I thank the member for Ocean Reef for the question. It is
great to have an opportunity to respond to some of the misleading information
that has been put out by the member for Cockburn. The member for Cockburn has
been consistently concerned about a contract for $260 million awarded to AJ
Lucas. I inform the house that a contract has not been awarded to AJ Lucas for
$260 million. In the budget for next year, there is a line item for $260 million,
which is the residual amount of a $450 million contract that will be expended
in the coming financial year for the second desalination plant.
Mr
F.M. Logan interjected.
Mr
W.R. MARMION : I will read it out. I was not going to do that, but on 14
June the member said —
As
I pointed out from that paragraph in the budget, that is $260 million of
capital expenditure awarded by the Barnett Liberal government, announced by the
Premier himself and the Minister for Water, to a company called AJ Lucas
That is what the member said—$260
million had been awarded to AJ Lucas. It has not.
Mr
F.M. Logan interjected.
Mr
W.R. MARMION : That is not what the member said. It is very misleading. The
member knew that.
Mr
F.M. Logan interjected.
The
SPEAKER : Member for Cockburn!
Mr
W.R. MARMION : On 1 May, the member asked me question 7484. He asked —
What
date was AJ Lucas appointed either Lead or Principal Contractor for the Stage 2
SSDP project
The answer states —
AJ
Lucas is not the Lead or Principal Contract.
Several members interjected.
Mr W.R. MARMION :
It is also disappointing that the member for Cockburn goes on about AJ Lucas.
It takes about five minutes to go on the internet and see some of the projects
that AJ Lucas is involved in. The Gorgon contract that AJ Lucas is involved in
with Chevron is a $100 million project. The Bonaparte gas pipeline is a $100 million
project. The western corridor recycled water pipeline is a $550 million
project. I will happily table this document, Mr Speaker. The South East
Australia Gas partnership is a $340 million project. The Brooklyn to Lara
pipeline is a $50 million project. AJ Lucas is involved in the southern
seawater desalination plant and another reticulation re-use and sewerage
project. The list goes on and on.
Mr F.M. Logan :
Were they announced at the stock exchange at the very time you announced the
contract? Were they? Yes.
Mr W.R. MARMION :
The other point the member keeps talking about is bankrupt —
Mr
F.M. Logan interjected.
The
SPEAKER : Member for Cockburn!
Mr
W.R. MARMION : Thank you. Come in, spinner! It took me a little less time—30
seconds—to get this next piece of paper. It is the balance sheet for AJ
Lucas. I did not do year 8 bookkeeping, but I do know the very first thing that
people learn in bookkeeping is to add up the assets and liabilities of the
company and take away the liabilities from the assets. I have done that. There
it is in the balance sheet, which shows the assets and liabilities, which then
comes up with the net assets.
Several members interjected.
Mr
W.R. MARMION : What are they? The net assets amount to $175.883 million.
Mr
F.M. Logan : Have a look at their debt level.
Mr
W.R. MARMION : I have; it is there in the balance sheet under liabilities.
Several members interjected.
Mr
W.R. MARMION : A debt is a liability. Goodness me! Is the member for
Cockburn commercially illiterate?
Several members interjected.
Mr
W.R. MARMION : Mr Speaker, I will close on one point: the Water Corporation
is at the stage of deciding to award the second stage of an alliance contract.
The first stage of the alliance contract was very successful—a contract
worth far more than $450 million—and was delivered ahead of time and
below budget. There are two other things to note. The alliance won a national
award for the best desalination plant in Australia, and a month ago it won the
equivalent of an Academy Award in Rome for the desalination plant of the world!
Several members interjected.
Mr
W.R. MARMION : The Water Corporation is therefore in a difficult position.
Should it award stage 2 of the contract to the company that has just won an
Academy Award? Mr Speaker, I rest my case.
[See
paper 4959.]
great to have an opportunity to respond to some of the misleading information
that has been put out by the member for Cockburn. The member for Cockburn has
been consistently concerned about a contract for $260 million awarded to AJ
Lucas. I inform the house that a contract has not been awarded to AJ Lucas for
$260 million. In the budget for next year, there is a line item for $260 million,
which is the residual amount of a $450 million contract that will be expended
in the coming financial year for the second desalination plant.
Mr
F.M. Logan interjected.
Mr
W.R. MARMION : I will read it out. I was not going to do that, but on 14
June the member said —
As
I pointed out from that paragraph in the budget, that is $260 million of
capital expenditure awarded by the Barnett Liberal government, announced by the
Premier himself and the Minister for Water, to a company called AJ Lucas
That is what the member said—$260
million had been awarded to AJ Lucas. It has not.
Mr
F.M. Logan interjected.
Mr
W.R. MARMION : That is not what the member said. It is very misleading. The
member knew that.
Mr
F.M. Logan interjected.
The
SPEAKER : Member for Cockburn!
Mr
W.R. MARMION : On 1 May, the member asked me question 7484. He asked —
What
date was AJ Lucas appointed either Lead or Principal Contractor for the Stage 2
SSDP project
The answer states —
AJ
Lucas is not the Lead or Principal Contract.
Several members interjected.
Mr W.R. MARMION :
It is also disappointing that the member for Cockburn goes on about AJ Lucas.
It takes about five minutes to go on the internet and see some of the projects
that AJ Lucas is involved in. The Gorgon contract that AJ Lucas is involved in
with Chevron is a $100 million project. The Bonaparte gas pipeline is a $100 million
project. The western corridor recycled water pipeline is a $550 million
project. I will happily table this document, Mr Speaker. The South East
Australia Gas partnership is a $340 million project. The Brooklyn to Lara
pipeline is a $50 million project. AJ Lucas is involved in the southern
seawater desalination plant and another reticulation re-use and sewerage
project. The list goes on and on.
Mr F.M. Logan :
Were they announced at the stock exchange at the very time you announced the
contract? Were they? Yes.
Mr W.R. MARMION :
The other point the member keeps talking about is bankrupt —
Mr
F.M. Logan interjected.
The
SPEAKER : Member for Cockburn!
Mr
W.R. MARMION : Thank you. Come in, spinner! It took me a little less time—30
seconds—to get this next piece of paper. It is the balance sheet for AJ
Lucas. I did not do year 8 bookkeeping, but I do know the very first thing that
people learn in bookkeeping is to add up the assets and liabilities of the
company and take away the liabilities from the assets. I have done that. There
it is in the balance sheet, which shows the assets and liabilities, which then
comes up with the net assets.
Several members interjected.
Mr
W.R. MARMION : What are they? The net assets amount to $175.883 million.
Mr
F.M. Logan : Have a look at their debt level.
Mr
W.R. MARMION : I have; it is there in the balance sheet under liabilities.
Several members interjected.
Mr
W.R. MARMION : A debt is a liability. Goodness me! Is the member for
Cockburn commercially illiterate?
Several members interjected.
Mr
W.R. MARMION : Mr Speaker, I will close on one point: the Water Corporation
is at the stage of deciding to award the second stage of an alliance contract.
The first stage of the alliance contract was very successful—a contract
worth far more than $450 million—and was delivered ahead of time and
below budget. There are two other things to note. The alliance won a national
award for the best desalination plant in Australia, and a month ago it won the
equivalent of an Academy Award in Rome for the desalination plant of the world!
Several members interjected.
Mr
W.R. MARMION : The Water Corporation is therefore in a difficult position.
Should it award stage 2 of the contract to the company that has just won an
Academy Award? Mr Speaker, I rest my case.
[See
paper 4959.]
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