❓ Dr. Honey questions the Minister for Energy about the secrecy surrounding the sale of the South Fremantle Power Station. The Minister claims the sale is a commercial decision by Synergy, independent of political interference.
AnsweredQoN 89Legislative Assembly
QuestionView source ↗
SOUTH
FREMANTLE POWER STATION — SALE
89. Dr D.J. HONEY to the Minister for Energy:
Before I ask my question, I join
the Premier in expressing that my thoughts and deepest affection are there for
the people of Ukraine, whose country has apparently been invaded by Russia. It
must be utterly terrifying for those people. I fully support the comments made
by the Premier.
I also send my deepest sympathies
to the family of Jack Bendat. Jack Bendat was a giant in Western Australia—an
immigrant who contributed an enormous amount to our state.
I refer the minister to recent
media reports in The West Australian , on 6PR and even in the Fremantle
Shipping News about the mystery and secrecy surrounding the sale process of
the six-hectare heritage-listed South Fremantle power station site.
(1) Why is the community and the
Cockburn city council being kept in the dark about the sale process?
(2) Who is the successful proponent
and what is the purchase price that has been offered?
(3) What are the
conditions of sale, and is the sale dependent on any contributions, in cash or
in kind, from the government and/or Synergy?
FREMANTLE POWER STATION — SALE
89. Dr D.J. HONEY to the Minister for Energy:
Before I ask my question, I join
the Premier in expressing that my thoughts and deepest affection are there for
the people of Ukraine, whose country has apparently been invaded by Russia. It
must be utterly terrifying for those people. I fully support the comments made
by the Premier.
I also send my deepest sympathies
to the family of Jack Bendat. Jack Bendat was a giant in Western Australia—an
immigrant who contributed an enormous amount to our state.
I refer the minister to recent
media reports in The West Australian , on 6PR and even in the Fremantle
Shipping News about the mystery and secrecy surrounding the sale process of
the six-hectare heritage-listed South Fremantle power station site.
(1) Why is the community and the
Cockburn city council being kept in the dark about the sale process?
(2) Who is the successful proponent
and what is the purchase price that has been offered?
(3) What are the
conditions of sale, and is the sale dependent on any contributions, in cash or
in kind, from the government and/or Synergy?
AnswerView source ↗
(1)–(3) I am not aware of any of the details of the sale
process, other than that which I provided in answer to a question in the upper house the other day. I have
previously explained that this process is being conducted independently of me and my office by Synergy. I cannot believe that the shadow Minister for
Energy has said that there should be political interference in this process. I think
it is extraordinary that the shadow Minister for Energy thinks that politicians
should decide who is the best person to buy this site.
I want to remind people that when
this matter came before the house previously, there was some confusion by the
opposition about what was being asked for by Synergy. Synergy asked at that
time for expressions of interest, not a bid, for the site. It asked companies
to provide details of their capacity to be involved in such a complex project as the redevelopment of the South Fremantle power
station, a heritage-listed site with known contamination in a constrained
environment next to a Western Power substation. The opposition thought, and so
did a particular journalist, that the bidders were being asked for a bid within
two weeks. Nothing was further from the truth. What people were asked to do was
to say whether they were interested in bidding for the project and what was
their capacity to deliver a good outcome.
Synergy was asked by me to deal with
that entire matter as a commercial transaction without political interference,
and that is exactly what is occurring. I have become aware, because of a media
report, that apparently some heads of agreement are following on from that
process. Clearly, as I understand from the answer I gave in the other place,
there is a conditional sale. Clearly, the conditions for that sale have not
been completed. When those conditions are completed, Synergy will make the
decision on whether it wants to dispose of the asset. That is a commercial
decision for Synergy. If Synergy needs to make some contribution for the
proponent to take this site off its hands, that will be a matter for Synergy
and its board to decide. I would not be
surprised if that were the case, because this is a very difficult site for
redevelopment . We know that from what has happened with the East Perth
power station. We know that that is what has happened with other power stations
around the world. If Synergy can dispose of this asset for less than the
potential cost of rehabilitation, it will have done a great job and I will
congratulate it. But what I will not do is to follow the suggestion from the
shadow minister and have political interference in this process.
process, other than that which I provided in answer to a question in the upper house the other day. I have
previously explained that this process is being conducted independently of me and my office by Synergy. I cannot believe that the shadow Minister for
Energy has said that there should be political interference in this process. I think
it is extraordinary that the shadow Minister for Energy thinks that politicians
should decide who is the best person to buy this site.
I want to remind people that when
this matter came before the house previously, there was some confusion by the
opposition about what was being asked for by Synergy. Synergy asked at that
time for expressions of interest, not a bid, for the site. It asked companies
to provide details of their capacity to be involved in such a complex project as the redevelopment of the South Fremantle power
station, a heritage-listed site with known contamination in a constrained
environment next to a Western Power substation. The opposition thought, and so
did a particular journalist, that the bidders were being asked for a bid within
two weeks. Nothing was further from the truth. What people were asked to do was
to say whether they were interested in bidding for the project and what was
their capacity to deliver a good outcome.
Synergy was asked by me to deal with
that entire matter as a commercial transaction without political interference,
and that is exactly what is occurring. I have become aware, because of a media
report, that apparently some heads of agreement are following on from that
process. Clearly, as I understand from the answer I gave in the other place,
there is a conditional sale. Clearly, the conditions for that sale have not
been completed. When those conditions are completed, Synergy will make the
decision on whether it wants to dispose of the asset. That is a commercial
decision for Synergy. If Synergy needs to make some contribution for the
proponent to take this site off its hands, that will be a matter for Synergy
and its board to decide. I would not be
surprised if that were the case, because this is a very difficult site for
redevelopment . We know that from what has happened with the East Perth
power station. We know that that is what has happened with other power stations
around the world. If Synergy can dispose of this asset for less than the
potential cost of rehabilitation, it will have done a great job and I will
congratulate it. But what I will not do is to follow the suggestion from the
shadow minister and have political interference in this process.
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