❓ Mr. Wyatt questions the Premier regarding a proposal to replace iron ore production rental fees with an upfront payment. The Premier clarifies the proposal's origin, ongoing discussions with BHP Billiton and Rio Tinto, and its revenue-neutral nature for the state.
AnsweredQoN 810Legislative Assembly
QuestionView source ↗
IRON ORE MINING — STATE AGREEMENT PROPOSALS
810. Mr B.S. WYATT to the Premier:
I refer to the Premier's
proposal to remove the production rental fee from Western Australian state
agreements as it applies to the state's major iron ore miners and
replace it with an upfront payment, and his statement that the miners are still
thinking about it.
(1) Who is still thinking about the
Premier's proposal?
(2) What are the terms and
conditions, if any, that the Premier has applied to this proposal?
810. Mr B.S. WYATT to the Premier:
I refer to the Premier's
proposal to remove the production rental fee from Western Australian state
agreements as it applies to the state's major iron ore miners and
replace it with an upfront payment, and his statement that the miners are still
thinking about it.
(1) Who is still thinking about the
Premier's proposal?
(2) What are the terms and
conditions, if any, that the Premier has applied to this proposal?
AnswerView source ↗
(1)–(2) The
concept came from the Treasurer, and I think it was a very clever concept. The Treasurer
and I have spoken to the heads of BHP Billiton and Rio Tinto. I spoke to the
global head of Rio Tinto about it at the fiftieth anniversary of Rio's
mining in the Pilbara. Ongoing discussions have taken place. The head of Rio
Tinto described this as the biggest issue facing his company globally. The
company is saying very publicly that it sees it as a big issue. The Treasurer
came up with what I thought was a good proposal. If the companies see it as
their biggest issue, here is a way they can potentially resolve it—pay
it out. Whether the companies agree remains to be seen. It is basically neutral
for the state government. There is no increase in charges. We are simply saying
that if the companies want to get rid of that 25c a tonne charge, one option is
to pay it out, either in one lump sum or over time. We could reach an
agreement. It is up to the companies. If they do not accept it, as I have said,
it is revenue neutral for the state government. We are not increasing or
decreasing their charges. We are simply saying that if they see it as a threat
to their long-term financial position, they can do something about it, and
there is an offer.
Several members interjected.
Mr C.J. BARNETT : That is the position. There is a conversation
going on here, but that is fine.
That is where it is at. It is up to the companies. If they decide not to
do it, that is their call. If I were them, I would do it.
concept came from the Treasurer, and I think it was a very clever concept. The Treasurer
and I have spoken to the heads of BHP Billiton and Rio Tinto. I spoke to the
global head of Rio Tinto about it at the fiftieth anniversary of Rio's
mining in the Pilbara. Ongoing discussions have taken place. The head of Rio
Tinto described this as the biggest issue facing his company globally. The
company is saying very publicly that it sees it as a big issue. The Treasurer
came up with what I thought was a good proposal. If the companies see it as
their biggest issue, here is a way they can potentially resolve it—pay
it out. Whether the companies agree remains to be seen. It is basically neutral
for the state government. There is no increase in charges. We are simply saying
that if the companies want to get rid of that 25c a tonne charge, one option is
to pay it out, either in one lump sum or over time. We could reach an
agreement. It is up to the companies. If they do not accept it, as I have said,
it is revenue neutral for the state government. We are not increasing or
decreasing their charges. We are simply saying that if they see it as a threat
to their long-term financial position, they can do something about it, and
there is an offer.
Several members interjected.
Mr C.J. BARNETT : That is the position. There is a conversation
going on here, but that is fine.
That is where it is at. It is up to the companies. If they decide not to
do it, that is their call. If I were them, I would do it.
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