❓ Mr. Johnston questions the Treasurer about the financial return and job creation resulting from the $330 million state contribution to the Ord Stage 2 project. The Treasurer defends the investment as a necessary subsidy for agricultural expansion and regional development, drawing parallels to other government-underwritten infrastructure projects.
AnsweredQoN 842Legislative Assembly
QuestionView source ↗
ORD STAGE
2 — STATE CONTRIBUTION
842. Mr W.J. JOHNSTON to the
Treasurer:
I refer to the Premier's comments last month in Hansard about Ord stage 2 that —
If all the sums, the cost benefits and the like are done, will the
project stack up 100 per cent on economic grounds? No, it will not. It was
never going to do that �
(1) How much of the $330 million state contribution will be
recovered by the taxpayers?
(2) What is
the level of subsidy being provided and how many full-time jobs have been
created by this $330 million expenditure?
2 — STATE CONTRIBUTION
842. Mr W.J. JOHNSTON to the
Treasurer:
I refer to the Premier's comments last month in Hansard about Ord stage 2 that —
If all the sums, the cost benefits and the like are done, will the
project stack up 100 per cent on economic grounds? No, it will not. It was
never going to do that �
(1) How much of the $330 million state contribution will be
recovered by the taxpayers?
(2) What is
the level of subsidy being provided and how many full-time jobs have been
created by this $330 million expenditure?
AnswerView source ↗
(1)–(2)
The expansion of the Ord was the first time in probably 40 years that we saw
any expansion of irrigated agriculture in Australia.
Mr B.S. Wyatt :
Well done.
Dr M.D. NAHAN :
Good. Every time in every case that I have ever heard about of expanding
irrigated agriculture —
Several members interjected.
The SPEAKER :
Member for Warnbro, I call you to order for the first time, and member for
Pilbara for the first time. Thank you.
Dr M.D. NAHAN :
Every time I have looked at the area—I might be wrong—most
expansion of irrigated agriculture in Australia has always required a government
subsidy in terms of capital works. The previous Ord project did, this Ord
project did and the rest of them will. Many reports over the years have
indicated that in order to make the Ord successful, it had to be expanded very
dramatically. Economies of size were required and major investors were needed
to expand it further and to invest private money into the business to get it
going. It is the beginning of a new industry in that area. There is no doubt
that it was a subsidy. We underwrote the investment of infrastructure, just
like we do on a whole range of infrastructure. The Henderson facility in
Cockburn Sound was underwritten and funded largely by government and we will
never recover the full investment that we put into the Henderson estate. It has
created many thousands of jobs. It is the same thing.
Several members interjected.
Dr M.D. NAHAN :
Members opposite have no faith; they do not know regional Western Australia or
indeed agriculture at all. They do not know anything about it and they do not
care. It is strange that the member for Kimberley is one of your mob.
Mr P. Papalia interjected.
The SPEAKER : That
is enough, member for Warnbro.
Dr M.D. NAHAN :
Nonetheless, it is an investment that we made.
Mr B.J. Grylls interjected.
The SPEAKER :
Member for Pilbara, I call you to order for the second time. Thanks for the
help, member for West Swan.
Dr M.D. NAHAN : It
is an investment that we made into the future of the Kimberley and it will pay
off hugely over the years, particularly in the employment of Aboriginal people.
The expansion of the Ord was the first time in probably 40 years that we saw
any expansion of irrigated agriculture in Australia.
Mr B.S. Wyatt :
Well done.
Dr M.D. NAHAN :
Good. Every time in every case that I have ever heard about of expanding
irrigated agriculture —
Several members interjected.
The SPEAKER :
Member for Warnbro, I call you to order for the first time, and member for
Pilbara for the first time. Thank you.
Dr M.D. NAHAN :
Every time I have looked at the area—I might be wrong—most
expansion of irrigated agriculture in Australia has always required a government
subsidy in terms of capital works. The previous Ord project did, this Ord
project did and the rest of them will. Many reports over the years have
indicated that in order to make the Ord successful, it had to be expanded very
dramatically. Economies of size were required and major investors were needed
to expand it further and to invest private money into the business to get it
going. It is the beginning of a new industry in that area. There is no doubt
that it was a subsidy. We underwrote the investment of infrastructure, just
like we do on a whole range of infrastructure. The Henderson facility in
Cockburn Sound was underwritten and funded largely by government and we will
never recover the full investment that we put into the Henderson estate. It has
created many thousands of jobs. It is the same thing.
Several members interjected.
Dr M.D. NAHAN :
Members opposite have no faith; they do not know regional Western Australia or
indeed agriculture at all. They do not know anything about it and they do not
care. It is strange that the member for Kimberley is one of your mob.
Mr P. Papalia interjected.
The SPEAKER : That
is enough, member for Warnbro.
Dr M.D. NAHAN :
Nonetheless, it is an investment that we made.
Mr B.J. Grylls interjected.
The SPEAKER :
Member for Pilbara, I call you to order for the second time. Thanks for the
help, member for West Swan.
Dr M.D. NAHAN : It
is an investment that we made into the future of the Kimberley and it will pay
off hugely over the years, particularly in the employment of Aboriginal people.
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