Mr. Day questions the Minister for State Development about increased gas transport costs on the Goldfields Gas Pipeline following the removal of tariffs in 2001, inquiring about the basis for the removal, compliance with the Goldfields Pipeline Agreement Act, and actions taken to ensure competitive gas pricing. The Minister acknowledges the complexity and states the matter is under review.

AnsweredQoN 891Legislative Assembly
Asked
26 June 2003
Portfolio
State Development

QuestionView source ↗

I refer the minister to the goldfields gas pipeline, which was, of course, a major initiative of the previous coalition Government, and which has boosted investment in mining and downstream processing in areas between and including Karratha and Kalgoorlie. (1) Is the minister aware that in December 2001 the owners of the pipeline removed the previously available tariffs, thereby effectively raising the cost of gas transport on the pipeline by 25 per cent? (2) On what basis did the owners of the pipeline withdraw those previously available tariffs? (3) Does the minister consider the current tariffs to be in accordance with clause 22(1) of the Goldfields Pipeline Agreement Act 1994, which states that tariffs on the pipeline must be “fair and reasonable and consistent with the tariff setting principles approved by the Minister”? (4) What action has the minister taken to ensure that competitively priced gas is once again available on the pipeline? Mr C.M. BROWN

AnswerView source ↗

(1)-(4) I thank the member for Darling Range for his question. This is a complex matter. Legal advisers are having great difficulty providing proper legal advice to government on the interaction of the state agreement with the role of the Independent Gas Pipelines Access Regulator. It is a matter that is subject to considerable advice to government - Mr C.J. Barnett: It is an agreement Act. Mr C.M. BROWN: No. There is the operation of the agreement Act and there is the operation of the independent gas regulator Act. The complexities that have been caused in terms of - Mr P.D. Omodei interjected. Mr C.M. BROWN: The member would know. This is a matter of considerable legal advice and complexity. It is a matter that is under review. Mr J.H.D. Day: What action have you taken? Mr C.M. BROWN: The complexities of the matter are under review.
(1) Is the minister aware that in December 2001 the owners of the pipeline removed the previously available tariffs, thereby effectively raising the cost of gas transport on the pipeline by 25 per cent? (2) On what basis did the owners of the pipeline withdraw those previously available tariffs? (3) Does the minister consider the current tariffs to be in accordance with clause 22(1) of the Goldfields Pipeline Agreement Act 1994, which states that tariffs on the pipeline must be “fair and reasonable and consistent with the tariff setting principles approved by the Minister”? (4) What action has the minister taken to ensure that competitively priced gas is once again available on the pipeline? Mr C.M. BROWN replied: (1)-(4) I thank the member for Darling Range for his question. This is a complex matter. Legal advisers are having great difficulty providing proper legal advice to government on the interaction of the state agreement with the role of the Independent Gas Pipelines Access Regulator. It is a matter that is subject to considerable advice to government - Mr C.J. Barnett: It is an agreement Act. Mr C.M. BROWN: No. There is the operation of the agreement Act and there is the operation of the independent gas regulator Act. The complexities that have been caused in terms of - Mr P.D. Omodei interjected. Mr C.M. BROWN: The member would know. This is a matter of considerable legal advice and complexity. It is a matter that is under review. Mr J.H.D. Day: What action have you taken? Mr C.M. BROWN: The complexities of the matter are under review.
(2) On what basis did the owners of the pipeline withdraw those previously available tariffs? (3) Does the minister consider the current tariffs to be in accordance with clause 22(1) of the Goldfields Pipeline Agreement Act 1994, which states that tariffs on the pipeline must be “fair and reasonable and consistent with the tariff setting principles approved by the Minister”? (4) What action has the minister taken to ensure that competitively priced gas is once again available on the pipeline? Mr C.M. BROWN replied: (1)-(4) I thank the member for Darling Range for his question. This is a complex matter. Legal advisers are having great difficulty providing proper legal advice to government on the interaction of the state agreement with the role of the Independent Gas Pipelines Access Regulator. It is a matter that is subject to considerable advice to government - Mr C.J. Barnett: It is an agreement Act. Mr C.M. BROWN: No. There is the operation of the agreement Act and there is the operation of the independent gas regulator Act. The complexities that have been caused in terms of - Mr P.D. Omodei interjected. Mr C.M. BROWN: The member would know. This is a matter of considerable legal advice and complexity. It is a matter that is under review. Mr J.H.D. Day: What action have you taken? Mr C.M. BROWN: The complexities of the matter are under review.
(3) Does the minister consider the current tariffs to be in accordance with clause 22(1) of the Goldfields Pipeline Agreement Act 1994, which states that tariffs on the pipeline must be “fair and reasonable and consistent with the tariff setting principles approved by the Minister”? (4) What action has the minister taken to ensure that competitively priced gas is once again available on the pipeline? Mr C.M. BROWN replied: (1)-(4) I thank the member for Darling Range for his question. This is a complex matter. Legal advisers are having great difficulty providing proper legal advice to government on the interaction of the state agreement with the role of the Independent Gas Pipelines Access Regulator. It is a matter that is subject to considerable advice to government - Mr C.J. Barnett: It is an agreement Act. Mr C.M. BROWN: No. There is the operation of the agreement Act and there is the operation of the independent gas regulator Act. The complexities that have been caused in terms of - Mr P.D. Omodei interjected. Mr C.M. BROWN: The member would know. This is a matter of considerable legal advice and complexity. It is a matter that is under review. Mr J.H.D. Day: What action have you taken? Mr C.M. BROWN: The complexities of the matter are under review.
(4) What action has the minister taken to ensure that competitively priced gas is once again available on the pipeline? Mr C.M. BROWN replied: (1)-(4) I thank the member for Darling Range for his question. This is a complex matter. Legal advisers are having great difficulty providing proper legal advice to government on the interaction of the state agreement with the role of the Independent Gas Pipelines Access Regulator. It is a matter that is subject to considerable advice to government - Mr C.J. Barnett: It is an agreement Act. Mr C.M. BROWN: No. There is the operation of the agreement Act and there is the operation of the independent gas regulator Act. The complexities that have been caused in terms of - Mr P.D. Omodei interjected. Mr C.M. BROWN: The member would know. This is a matter of considerable legal advice and complexity. It is a matter that is under review. Mr J.H.D. Day: What action have you taken? Mr C.M. BROWN: The complexities of the matter are under review.
Mr C.M. BROWN replied: (1)-(4) I thank the member for Darling Range for his question. This is a complex matter. Legal advisers are having great difficulty providing proper legal advice to government on the interaction of the state agreement with the role of the Independent Gas Pipelines Access Regulator. It is a matter that is subject to considerable advice to government - Mr C.J. Barnett: It is an agreement Act. Mr C.M. BROWN: No. There is the operation of the agreement Act and there is the operation of the independent gas regulator Act. The complexities that have been caused in terms of - Mr P.D. Omodei interjected. Mr C.M. BROWN: The member would know. This is a matter of considerable legal advice and complexity. It is a matter that is under review. Mr J.H.D. Day: What action have you taken? Mr C.M. BROWN: The complexities of the matter are under review.
(1)-(4) I thank the member for Darling Range for his question. This is a complex matter. Legal advisers are having great difficulty providing proper legal advice to government on the interaction of the state agreement with the role of the Independent Gas Pipelines Access Regulator. It is a matter that is subject to considerable advice to government - Mr C.J. Barnett: It is an agreement Act. Mr C.M. BROWN: No. There is the operation of the agreement Act and there is the operation of the independent gas regulator Act. The complexities that have been caused in terms of - Mr P.D. Omodei interjected. Mr C.M. BROWN: The member would know. This is a matter of considerable legal advice and complexity. It is a matter that is under review. Mr J.H.D. Day: What action have you taken? Mr C.M. BROWN: The complexities of the matter are under review.
Mr C.J. Barnett: It is an agreement Act. Mr C.M. BROWN: No. There is the operation of the agreement Act and there is the operation of the independent gas regulator Act. The complexities that have been caused in terms of - Mr P.D. Omodei interjected. Mr C.M. BROWN: The member would know. This is a matter of considerable legal advice and complexity. It is a matter that is under review. Mr J.H.D. Day: What action have you taken? Mr C.M. BROWN: The complexities of the matter are under review.
Mr C.M. BROWN: No. There is the operation of the agreement Act and there is the operation of the independent gas regulator Act. The complexities that have been caused in terms of - Mr P.D. Omodei interjected. Mr C.M. BROWN: The member would know. This is a matter of considerable legal advice and complexity. It is a matter that is under review. Mr J.H.D. Day: What action have you taken? Mr C.M. BROWN: The complexities of the matter are under review.
Mr P.D. Omodei interjected. Mr C.M. BROWN: The member would know. This is a matter of considerable legal advice and complexity. It is a matter that is under review. Mr J.H.D. Day: What action have you taken? Mr C.M. BROWN: The complexities of the matter are under review.
Mr C.M. BROWN: The member would know. This is a matter of considerable legal advice and complexity. It is a matter that is under review. Mr J.H.D. Day: What action have you taken? Mr C.M. BROWN: The complexities of the matter are under review.
This is a matter of considerable legal advice and complexity. It is a matter that is under review. Mr J.H.D. Day: What action have you taken? Mr C.M. BROWN: The complexities of the matter are under review.
Mr J.H.D. Day: What action have you taken? Mr C.M. BROWN: The complexities of the matter are under review.
Mr C.M. BROWN: The complexities of the matter are under review.

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