❓ Shadow Minister Ripper questions Premier Barnett about cost blow-outs in the Oakajee port and rail project, specifically regarding funding commitments and obligations if the project fails. Barnett defends the state's investment strategy, emphasizing state ownership and a fixed contribution.
AnsweredQoN 127Legislative Assembly
QuestionView source ↗
OAKAJEE PROJECT — COST BLOW-OUTS
(1) The Premier’s Infrastructure Australia submission states — The Oakajee port and rail project involves direct infrastructure spending of approximately $3.5 billion. Does the Premier stand by that statement? (2) Does the Premier stand by his Infrastructure Australia submission, which states that the port’s common-user infrastructure will cost $678 million? (3) If the Premier stands by those statements, why are the proponents seeking extra capital from the government and elsewhere to cover their cost blow-outs? (4) Following the Premier’s inadequate explanation during last Thursday’s question time, can he now explain why and under what circumstances the state has an obligation to pay the Oakajee proponents $78 million if the project does not proceed? Mr C.J. BARNETT
(1) The Premier’s Infrastructure Australia submission states — The Oakajee port and rail project involves direct infrastructure spending of approximately $3.5 billion. Does the Premier stand by that statement? (2) Does the Premier stand by his Infrastructure Australia submission, which states that the port’s common-user infrastructure will cost $678 million? (3) If the Premier stands by those statements, why are the proponents seeking extra capital from the government and elsewhere to cover their cost blow-outs? (4) Following the Premier’s inadequate explanation during last Thursday’s question time, can he now explain why and under what circumstances the state has an obligation to pay the Oakajee proponents $78 million if the project does not proceed? Mr C.J. BARNETT
AnswerView source ↗
(1)–(4) This is a private project. The information that was used in the submission to Infrastructure Australia was based on the estimates of the cost — Mr E.S. Ripper : Have you seen this headline, “Oakajee faces huge cost blowout”? Mr C.J. BARNETT : It is nice to have a photograph in the newspaper! It was based on the estimates of the cost of the project as it was seen, and at that stage, the so-called common-user infrastructure was estimated at $556 million. The state, allowing for inflation, time and what we estimated for construction, put in a bid, if you like, to Infrastructure Australia for joint funding toward the infrastructure between the commonwealth and the state of $678 million. That still stands. That is the level of contribution by the commonwealth and the state. Mr E.S. Ripper : What is the total cost of that infrastructure? Mr C.J. BARNETT : The total cost of the project is yet to be finally determined. The Leader of the Opposition should bear in mind that Oakajee Port and Rail has two components—the infrastructure and the Jack Hills mine. The Jack Hills mine has nothing to do with the state government or — Mr E.S. Ripper : That is just a red herring! Mr C.J. BARNETT : It is no different from any other mine. The state government is not putting any funding towards the development of the Jack Hills mine or towards Karara Iron Ore or Sinosteel Midwest Corporation or any other mine. We are prepared to fund the building of the port. The state government will own the port. It will manage the port on a commercial basis and will derive a return from the port. No money—not a single dollar—will go to Oakajee Port and Rail; it is for infrastructure that will be owned by the state of Western Australia. As I said when this debate started a few years ago — Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
(3) If the Premier stands by those statements, why are the proponents seeking extra capital from the government and elsewhere to cover their cost blow-outs? (4) Following the Premier’s inadequate explanation during last Thursday’s question time, can he now explain why and under what circumstances the state has an obligation to pay the Oakajee proponents $78 million if the project does not proceed? Mr C.J. BARNETT replied: (1)–(4) This is a private project. The information that was used in the submission to Infrastructure Australia was based on the estimates of the cost — Mr E.S. Ripper : Have you seen this headline, “Oakajee faces huge cost blowout”? Mr C.J. BARNETT : It is nice to have a photograph in the newspaper! It was based on the estimates of the cost of the project as it was seen, and at that stage, the so-called common-user infrastructure was estimated at $556 million. The state, allowing for inflation, time and what we estimated for construction, put in a bid, if you like, to Infrastructure Australia for joint funding toward the infrastructure between the commonwealth and the state of $678 million. That still stands. That is the level of contribution by the commonwealth and the state. Mr E.S. Ripper : What is the total cost of that infrastructure? Mr C.J. BARNETT : The total cost of the project is yet to be finally determined. The Leader of the Opposition should bear in mind that Oakajee Port and Rail has two components—the infrastructure and the Jack Hills mine. The Jack Hills mine has nothing to do with the state government or — Mr E.S. Ripper : That is just a red herring! Mr C.J. BARNETT : It is no different from any other mine. The state government is not putting any funding towards the development of the Jack Hills mine or towards Karara Iron Ore or Sinosteel Midwest Corporation or any other mine. We are prepared to fund the building of the port. The state government will own the port. It will manage the port on a commercial basis and will derive a return from the port. No money—not a single dollar—will go to Oakajee Port and Rail; it is for infrastructure that will be owned by the state of Western Australia. As I said when this debate started a few years ago — Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
(4) Following the Premier’s inadequate explanation during last Thursday’s question time, can he now explain why and under what circumstances the state has an obligation to pay the Oakajee proponents $78 million if the project does not proceed? Mr C.J. BARNETT replied: (1)–(4) This is a private project. The information that was used in the submission to Infrastructure Australia was based on the estimates of the cost — Mr E.S. Ripper : Have you seen this headline, “Oakajee faces huge cost blowout”? Mr C.J. BARNETT : It is nice to have a photograph in the newspaper! It was based on the estimates of the cost of the project as it was seen, and at that stage, the so-called common-user infrastructure was estimated at $556 million. The state, allowing for inflation, time and what we estimated for construction, put in a bid, if you like, to Infrastructure Australia for joint funding toward the infrastructure between the commonwealth and the state of $678 million. That still stands. That is the level of contribution by the commonwealth and the state. Mr E.S. Ripper : What is the total cost of that infrastructure? Mr C.J. BARNETT : The total cost of the project is yet to be finally determined. The Leader of the Opposition should bear in mind that Oakajee Port and Rail has two components—the infrastructure and the Jack Hills mine. The Jack Hills mine has nothing to do with the state government or — Mr E.S. Ripper : That is just a red herring! Mr C.J. BARNETT : It is no different from any other mine. The state government is not putting any funding towards the development of the Jack Hills mine or towards Karara Iron Ore or Sinosteel Midwest Corporation or any other mine. We are prepared to fund the building of the port. The state government will own the port. It will manage the port on a commercial basis and will derive a return from the port. No money—not a single dollar—will go to Oakajee Port and Rail; it is for infrastructure that will be owned by the state of Western Australia. As I said when this debate started a few years ago — Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
Mr C.J. BARNETT replied: (1)–(4) This is a private project. The information that was used in the submission to Infrastructure Australia was based on the estimates of the cost — Mr E.S. Ripper : Have you seen this headline, “Oakajee faces huge cost blowout”? Mr C.J. BARNETT : It is nice to have a photograph in the newspaper! It was based on the estimates of the cost of the project as it was seen, and at that stage, the so-called common-user infrastructure was estimated at $556 million. The state, allowing for inflation, time and what we estimated for construction, put in a bid, if you like, to Infrastructure Australia for joint funding toward the infrastructure between the commonwealth and the state of $678 million. That still stands. That is the level of contribution by the commonwealth and the state. Mr E.S. Ripper : What is the total cost of that infrastructure? Mr C.J. BARNETT : The total cost of the project is yet to be finally determined. The Leader of the Opposition should bear in mind that Oakajee Port and Rail has two components—the infrastructure and the Jack Hills mine. The Jack Hills mine has nothing to do with the state government or — Mr E.S. Ripper : That is just a red herring! Mr C.J. BARNETT : It is no different from any other mine. The state government is not putting any funding towards the development of the Jack Hills mine or towards Karara Iron Ore or Sinosteel Midwest Corporation or any other mine. We are prepared to fund the building of the port. The state government will own the port. It will manage the port on a commercial basis and will derive a return from the port. No money—not a single dollar—will go to Oakajee Port and Rail; it is for infrastructure that will be owned by the state of Western Australia. As I said when this debate started a few years ago — Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
(1)–(4) This is a private project. The information that was used in the submission to Infrastructure Australia was based on the estimates of the cost — Mr E.S. Ripper : Have you seen this headline, “Oakajee faces huge cost blowout”? Mr C.J. BARNETT : It is nice to have a photograph in the newspaper! It was based on the estimates of the cost of the project as it was seen, and at that stage, the so-called common-user infrastructure was estimated at $556 million. The state, allowing for inflation, time and what we estimated for construction, put in a bid, if you like, to Infrastructure Australia for joint funding toward the infrastructure between the commonwealth and the state of $678 million. That still stands. That is the level of contribution by the commonwealth and the state. Mr E.S. Ripper : What is the total cost of that infrastructure? Mr C.J. BARNETT : The total cost of the project is yet to be finally determined. The Leader of the Opposition should bear in mind that Oakajee Port and Rail has two components—the infrastructure and the Jack Hills mine. The Jack Hills mine has nothing to do with the state government or — Mr E.S. Ripper : That is just a red herring! Mr C.J. BARNETT : It is no different from any other mine. The state government is not putting any funding towards the development of the Jack Hills mine or towards Karara Iron Ore or Sinosteel Midwest Corporation or any other mine. We are prepared to fund the building of the port. The state government will own the port. It will manage the port on a commercial basis and will derive a return from the port. No money—not a single dollar—will go to Oakajee Port and Rail; it is for infrastructure that will be owned by the state of Western Australia. As I said when this debate started a few years ago — Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
Mr E.S. Ripper : Have you seen this headline, “Oakajee faces huge cost blowout”? Mr C.J. BARNETT : It is nice to have a photograph in the newspaper! It was based on the estimates of the cost of the project as it was seen, and at that stage, the so-called common-user infrastructure was estimated at $556 million. The state, allowing for inflation, time and what we estimated for construction, put in a bid, if you like, to Infrastructure Australia for joint funding toward the infrastructure between the commonwealth and the state of $678 million. That still stands. That is the level of contribution by the commonwealth and the state. Mr E.S. Ripper : What is the total cost of that infrastructure? Mr C.J. BARNETT : The total cost of the project is yet to be finally determined. The Leader of the Opposition should bear in mind that Oakajee Port and Rail has two components—the infrastructure and the Jack Hills mine. The Jack Hills mine has nothing to do with the state government or — Mr E.S. Ripper : That is just a red herring! Mr C.J. BARNETT : It is no different from any other mine. The state government is not putting any funding towards the development of the Jack Hills mine or towards Karara Iron Ore or Sinosteel Midwest Corporation or any other mine. We are prepared to fund the building of the port. The state government will own the port. It will manage the port on a commercial basis and will derive a return from the port. No money—not a single dollar—will go to Oakajee Port and Rail; it is for infrastructure that will be owned by the state of Western Australia. As I said when this debate started a few years ago — Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
Mr C.J. BARNETT : It is nice to have a photograph in the newspaper! It was based on the estimates of the cost of the project as it was seen, and at that stage, the so-called common-user infrastructure was estimated at $556 million. The state, allowing for inflation, time and what we estimated for construction, put in a bid, if you like, to Infrastructure Australia for joint funding toward the infrastructure between the commonwealth and the state of $678 million. That still stands. That is the level of contribution by the commonwealth and the state. Mr E.S. Ripper : What is the total cost of that infrastructure? Mr C.J. BARNETT : The total cost of the project is yet to be finally determined. The Leader of the Opposition should bear in mind that Oakajee Port and Rail has two components—the infrastructure and the Jack Hills mine. The Jack Hills mine has nothing to do with the state government or — Mr E.S. Ripper : That is just a red herring! Mr C.J. BARNETT : It is no different from any other mine. The state government is not putting any funding towards the development of the Jack Hills mine or towards Karara Iron Ore or Sinosteel Midwest Corporation or any other mine. We are prepared to fund the building of the port. The state government will own the port. It will manage the port on a commercial basis and will derive a return from the port. No money—not a single dollar—will go to Oakajee Port and Rail; it is for infrastructure that will be owned by the state of Western Australia. As I said when this debate started a few years ago — Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
It was based on the estimates of the cost of the project as it was seen, and at that stage, the so-called common-user infrastructure was estimated at $556 million. The state, allowing for inflation, time and what we estimated for construction, put in a bid, if you like, to Infrastructure Australia for joint funding toward the infrastructure between the commonwealth and the state of $678 million. That still stands. That is the level of contribution by the commonwealth and the state. Mr E.S. Ripper : What is the total cost of that infrastructure? Mr C.J. BARNETT : The total cost of the project is yet to be finally determined. The Leader of the Opposition should bear in mind that Oakajee Port and Rail has two components—the infrastructure and the Jack Hills mine. The Jack Hills mine has nothing to do with the state government or — Mr E.S. Ripper : That is just a red herring! Mr C.J. BARNETT : It is no different from any other mine. The state government is not putting any funding towards the development of the Jack Hills mine or towards Karara Iron Ore or Sinosteel Midwest Corporation or any other mine. We are prepared to fund the building of the port. The state government will own the port. It will manage the port on a commercial basis and will derive a return from the port. No money—not a single dollar—will go to Oakajee Port and Rail; it is for infrastructure that will be owned by the state of Western Australia. As I said when this debate started a few years ago — Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
Mr E.S. Ripper : What is the total cost of that infrastructure? Mr C.J. BARNETT : The total cost of the project is yet to be finally determined. The Leader of the Opposition should bear in mind that Oakajee Port and Rail has two components—the infrastructure and the Jack Hills mine. The Jack Hills mine has nothing to do with the state government or — Mr E.S. Ripper : That is just a red herring! Mr C.J. BARNETT : It is no different from any other mine. The state government is not putting any funding towards the development of the Jack Hills mine or towards Karara Iron Ore or Sinosteel Midwest Corporation or any other mine. We are prepared to fund the building of the port. The state government will own the port. It will manage the port on a commercial basis and will derive a return from the port. No money—not a single dollar—will go to Oakajee Port and Rail; it is for infrastructure that will be owned by the state of Western Australia. As I said when this debate started a few years ago — Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
Mr C.J. BARNETT : The total cost of the project is yet to be finally determined. The Leader of the Opposition should bear in mind that Oakajee Port and Rail has two components—the infrastructure and the Jack Hills mine. The Jack Hills mine has nothing to do with the state government or — Mr E.S. Ripper : That is just a red herring! Mr C.J. BARNETT : It is no different from any other mine. The state government is not putting any funding towards the development of the Jack Hills mine or towards Karara Iron Ore or Sinosteel Midwest Corporation or any other mine. We are prepared to fund the building of the port. The state government will own the port. It will manage the port on a commercial basis and will derive a return from the port. No money—not a single dollar—will go to Oakajee Port and Rail; it is for infrastructure that will be owned by the state of Western Australia. As I said when this debate started a few years ago — Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
Mr E.S. Ripper : That is just a red herring! Mr C.J. BARNETT : It is no different from any other mine. The state government is not putting any funding towards the development of the Jack Hills mine or towards Karara Iron Ore or Sinosteel Midwest Corporation or any other mine. We are prepared to fund the building of the port. The state government will own the port. It will manage the port on a commercial basis and will derive a return from the port. No money—not a single dollar—will go to Oakajee Port and Rail; it is for infrastructure that will be owned by the state of Western Australia. As I said when this debate started a few years ago — Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
Mr C.J. BARNETT : It is no different from any other mine. The state government is not putting any funding towards the development of the Jack Hills mine or towards Karara Iron Ore or Sinosteel Midwest Corporation or any other mine. We are prepared to fund the building of the port. The state government will own the port. It will manage the port on a commercial basis and will derive a return from the port. No money—not a single dollar—will go to Oakajee Port and Rail; it is for infrastructure that will be owned by the state of Western Australia. As I said when this debate started a few years ago — Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
(3) If the Premier stands by those statements, why are the proponents seeking extra capital from the government and elsewhere to cover their cost blow-outs? (4) Following the Premier’s inadequate explanation during last Thursday’s question time, can he now explain why and under what circumstances the state has an obligation to pay the Oakajee proponents $78 million if the project does not proceed? Mr C.J. BARNETT replied: (1)–(4) This is a private project. The information that was used in the submission to Infrastructure Australia was based on the estimates of the cost — Mr E.S. Ripper : Have you seen this headline, “Oakajee faces huge cost blowout”? Mr C.J. BARNETT : It is nice to have a photograph in the newspaper! It was based on the estimates of the cost of the project as it was seen, and at that stage, the so-called common-user infrastructure was estimated at $556 million. The state, allowing for inflation, time and what we estimated for construction, put in a bid, if you like, to Infrastructure Australia for joint funding toward the infrastructure between the commonwealth and the state of $678 million. That still stands. That is the level of contribution by the commonwealth and the state. Mr E.S. Ripper : What is the total cost of that infrastructure? Mr C.J. BARNETT : The total cost of the project is yet to be finally determined. The Leader of the Opposition should bear in mind that Oakajee Port and Rail has two components—the infrastructure and the Jack Hills mine. The Jack Hills mine has nothing to do with the state government or — Mr E.S. Ripper : That is just a red herring! Mr C.J. BARNETT : It is no different from any other mine. The state government is not putting any funding towards the development of the Jack Hills mine or towards Karara Iron Ore or Sinosteel Midwest Corporation or any other mine. We are prepared to fund the building of the port. The state government will own the port. It will manage the port on a commercial basis and will derive a return from the port. No money—not a single dollar—will go to Oakajee Port and Rail; it is for infrastructure that will be owned by the state of Western Australia. As I said when this debate started a few years ago — Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
(4) Following the Premier’s inadequate explanation during last Thursday’s question time, can he now explain why and under what circumstances the state has an obligation to pay the Oakajee proponents $78 million if the project does not proceed? Mr C.J. BARNETT replied: (1)–(4) This is a private project. The information that was used in the submission to Infrastructure Australia was based on the estimates of the cost — Mr E.S. Ripper : Have you seen this headline, “Oakajee faces huge cost blowout”? Mr C.J. BARNETT : It is nice to have a photograph in the newspaper! It was based on the estimates of the cost of the project as it was seen, and at that stage, the so-called common-user infrastructure was estimated at $556 million. The state, allowing for inflation, time and what we estimated for construction, put in a bid, if you like, to Infrastructure Australia for joint funding toward the infrastructure between the commonwealth and the state of $678 million. That still stands. That is the level of contribution by the commonwealth and the state. Mr E.S. Ripper : What is the total cost of that infrastructure? Mr C.J. BARNETT : The total cost of the project is yet to be finally determined. The Leader of the Opposition should bear in mind that Oakajee Port and Rail has two components—the infrastructure and the Jack Hills mine. The Jack Hills mine has nothing to do with the state government or — Mr E.S. Ripper : That is just a red herring! Mr C.J. BARNETT : It is no different from any other mine. The state government is not putting any funding towards the development of the Jack Hills mine or towards Karara Iron Ore or Sinosteel Midwest Corporation or any other mine. We are prepared to fund the building of the port. The state government will own the port. It will manage the port on a commercial basis and will derive a return from the port. No money—not a single dollar—will go to Oakajee Port and Rail; it is for infrastructure that will be owned by the state of Western Australia. As I said when this debate started a few years ago — Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
Mr C.J. BARNETT replied: (1)–(4) This is a private project. The information that was used in the submission to Infrastructure Australia was based on the estimates of the cost — Mr E.S. Ripper : Have you seen this headline, “Oakajee faces huge cost blowout”? Mr C.J. BARNETT : It is nice to have a photograph in the newspaper! It was based on the estimates of the cost of the project as it was seen, and at that stage, the so-called common-user infrastructure was estimated at $556 million. The state, allowing for inflation, time and what we estimated for construction, put in a bid, if you like, to Infrastructure Australia for joint funding toward the infrastructure between the commonwealth and the state of $678 million. That still stands. That is the level of contribution by the commonwealth and the state. Mr E.S. Ripper : What is the total cost of that infrastructure? Mr C.J. BARNETT : The total cost of the project is yet to be finally determined. The Leader of the Opposition should bear in mind that Oakajee Port and Rail has two components—the infrastructure and the Jack Hills mine. The Jack Hills mine has nothing to do with the state government or — Mr E.S. Ripper : That is just a red herring! Mr C.J. BARNETT : It is no different from any other mine. The state government is not putting any funding towards the development of the Jack Hills mine or towards Karara Iron Ore or Sinosteel Midwest Corporation or any other mine. We are prepared to fund the building of the port. The state government will own the port. It will manage the port on a commercial basis and will derive a return from the port. No money—not a single dollar—will go to Oakajee Port and Rail; it is for infrastructure that will be owned by the state of Western Australia. As I said when this debate started a few years ago — Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
(1)–(4) This is a private project. The information that was used in the submission to Infrastructure Australia was based on the estimates of the cost — Mr E.S. Ripper : Have you seen this headline, “Oakajee faces huge cost blowout”? Mr C.J. BARNETT : It is nice to have a photograph in the newspaper! It was based on the estimates of the cost of the project as it was seen, and at that stage, the so-called common-user infrastructure was estimated at $556 million. The state, allowing for inflation, time and what we estimated for construction, put in a bid, if you like, to Infrastructure Australia for joint funding toward the infrastructure between the commonwealth and the state of $678 million. That still stands. That is the level of contribution by the commonwealth and the state. Mr E.S. Ripper : What is the total cost of that infrastructure? Mr C.J. BARNETT : The total cost of the project is yet to be finally determined. The Leader of the Opposition should bear in mind that Oakajee Port and Rail has two components—the infrastructure and the Jack Hills mine. The Jack Hills mine has nothing to do with the state government or — Mr E.S. Ripper : That is just a red herring! Mr C.J. BARNETT : It is no different from any other mine. The state government is not putting any funding towards the development of the Jack Hills mine or towards Karara Iron Ore or Sinosteel Midwest Corporation or any other mine. We are prepared to fund the building of the port. The state government will own the port. It will manage the port on a commercial basis and will derive a return from the port. No money—not a single dollar—will go to Oakajee Port and Rail; it is for infrastructure that will be owned by the state of Western Australia. As I said when this debate started a few years ago — Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
Mr E.S. Ripper : Have you seen this headline, “Oakajee faces huge cost blowout”? Mr C.J. BARNETT : It is nice to have a photograph in the newspaper! It was based on the estimates of the cost of the project as it was seen, and at that stage, the so-called common-user infrastructure was estimated at $556 million. The state, allowing for inflation, time and what we estimated for construction, put in a bid, if you like, to Infrastructure Australia for joint funding toward the infrastructure between the commonwealth and the state of $678 million. That still stands. That is the level of contribution by the commonwealth and the state. Mr E.S. Ripper : What is the total cost of that infrastructure? Mr C.J. BARNETT : The total cost of the project is yet to be finally determined. The Leader of the Opposition should bear in mind that Oakajee Port and Rail has two components—the infrastructure and the Jack Hills mine. The Jack Hills mine has nothing to do with the state government or — Mr E.S. Ripper : That is just a red herring! Mr C.J. BARNETT : It is no different from any other mine. The state government is not putting any funding towards the development of the Jack Hills mine or towards Karara Iron Ore or Sinosteel Midwest Corporation or any other mine. We are prepared to fund the building of the port. The state government will own the port. It will manage the port on a commercial basis and will derive a return from the port. No money—not a single dollar—will go to Oakajee Port and Rail; it is for infrastructure that will be owned by the state of Western Australia. As I said when this debate started a few years ago — Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
Mr C.J. BARNETT : It is nice to have a photograph in the newspaper! It was based on the estimates of the cost of the project as it was seen, and at that stage, the so-called common-user infrastructure was estimated at $556 million. The state, allowing for inflation, time and what we estimated for construction, put in a bid, if you like, to Infrastructure Australia for joint funding toward the infrastructure between the commonwealth and the state of $678 million. That still stands. That is the level of contribution by the commonwealth and the state. Mr E.S. Ripper : What is the total cost of that infrastructure? Mr C.J. BARNETT : The total cost of the project is yet to be finally determined. The Leader of the Opposition should bear in mind that Oakajee Port and Rail has two components—the infrastructure and the Jack Hills mine. The Jack Hills mine has nothing to do with the state government or — Mr E.S. Ripper : That is just a red herring! Mr C.J. BARNETT : It is no different from any other mine. The state government is not putting any funding towards the development of the Jack Hills mine or towards Karara Iron Ore or Sinosteel Midwest Corporation or any other mine. We are prepared to fund the building of the port. The state government will own the port. It will manage the port on a commercial basis and will derive a return from the port. No money—not a single dollar—will go to Oakajee Port and Rail; it is for infrastructure that will be owned by the state of Western Australia. As I said when this debate started a few years ago — Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
It was based on the estimates of the cost of the project as it was seen, and at that stage, the so-called common-user infrastructure was estimated at $556 million. The state, allowing for inflation, time and what we estimated for construction, put in a bid, if you like, to Infrastructure Australia for joint funding toward the infrastructure between the commonwealth and the state of $678 million. That still stands. That is the level of contribution by the commonwealth and the state. Mr E.S. Ripper : What is the total cost of that infrastructure? Mr C.J. BARNETT : The total cost of the project is yet to be finally determined. The Leader of the Opposition should bear in mind that Oakajee Port and Rail has two components—the infrastructure and the Jack Hills mine. The Jack Hills mine has nothing to do with the state government or — Mr E.S. Ripper : That is just a red herring! Mr C.J. BARNETT : It is no different from any other mine. The state government is not putting any funding towards the development of the Jack Hills mine or towards Karara Iron Ore or Sinosteel Midwest Corporation or any other mine. We are prepared to fund the building of the port. The state government will own the port. It will manage the port on a commercial basis and will derive a return from the port. No money—not a single dollar—will go to Oakajee Port and Rail; it is for infrastructure that will be owned by the state of Western Australia. As I said when this debate started a few years ago — Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
Mr E.S. Ripper : What is the total cost of that infrastructure? Mr C.J. BARNETT : The total cost of the project is yet to be finally determined. The Leader of the Opposition should bear in mind that Oakajee Port and Rail has two components—the infrastructure and the Jack Hills mine. The Jack Hills mine has nothing to do with the state government or — Mr E.S. Ripper : That is just a red herring! Mr C.J. BARNETT : It is no different from any other mine. The state government is not putting any funding towards the development of the Jack Hills mine or towards Karara Iron Ore or Sinosteel Midwest Corporation or any other mine. We are prepared to fund the building of the port. The state government will own the port. It will manage the port on a commercial basis and will derive a return from the port. No money—not a single dollar—will go to Oakajee Port and Rail; it is for infrastructure that will be owned by the state of Western Australia. As I said when this debate started a few years ago — Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
Mr C.J. BARNETT : The total cost of the project is yet to be finally determined. The Leader of the Opposition should bear in mind that Oakajee Port and Rail has two components—the infrastructure and the Jack Hills mine. The Jack Hills mine has nothing to do with the state government or — Mr E.S. Ripper : That is just a red herring! Mr C.J. BARNETT : It is no different from any other mine. The state government is not putting any funding towards the development of the Jack Hills mine or towards Karara Iron Ore or Sinosteel Midwest Corporation or any other mine. We are prepared to fund the building of the port. The state government will own the port. It will manage the port on a commercial basis and will derive a return from the port. No money—not a single dollar—will go to Oakajee Port and Rail; it is for infrastructure that will be owned by the state of Western Australia. As I said when this debate started a few years ago — Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
Mr E.S. Ripper : That is just a red herring! Mr C.J. BARNETT : It is no different from any other mine. The state government is not putting any funding towards the development of the Jack Hills mine or towards Karara Iron Ore or Sinosteel Midwest Corporation or any other mine. We are prepared to fund the building of the port. The state government will own the port. It will manage the port on a commercial basis and will derive a return from the port. No money—not a single dollar—will go to Oakajee Port and Rail; it is for infrastructure that will be owned by the state of Western Australia. As I said when this debate started a few years ago — Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
Mr C.J. BARNETT : It is no different from any other mine. The state government is not putting any funding towards the development of the Jack Hills mine or towards Karara Iron Ore or Sinosteel Midwest Corporation or any other mine. We are prepared to fund the building of the port. The state government will own the port. It will manage the port on a commercial basis and will derive a return from the port. No money—not a single dollar—will go to Oakajee Port and Rail; it is for infrastructure that will be owned by the state of Western Australia. As I said when this debate started a few years ago — Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
Mr E.S. Ripper : Don’t you have to pay the total cost of that infrastructure? Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
Mr C.J. BARNETT : As long as I am the Premier of this state, we will not have a foreign-owned port in Western Australia. It is as simple as that. If the Leader of the Opposition disagrees with that proposition, by all means, he should advocate a foreign-owned port! That is something that this side of politics will not contemplate. It will be a state-owned port, like other ports around the state, particularly as this is a deep-sea port in a strategic location. That is the policy position. The government has prepared for, and has committed, $678 million—that is what it will commit. If the port and the infrastructure end up costing more, we may not fund every single component of the common-user infrastructure. Indeed, some of the proposals were for additions such as a second breakwater and some investment in anticipation of an expansion stage at some later stage, but we are not contemplating any of those as a government. We are going to fund $678 million, and that is it.
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