❓ The Minister for Mines and Petroleum outlines changes to the royalty regime for unconventional oil and gas projects, increasing the royalty rate and allocating funds to a clean energy fund. The response also criticises the previous government's policies.
AnsweredQoN 985Legislative Assembly
QuestionView source ↗
ENERGY — UNCONVENTIONAL OIL AND GAS
PROJECTS — ROYALTY RATE
985. Ms A. SANDERSON to the Minister for Mines and
Petroleum:
Can the minister update the house on
what changes are being made to the royalty regime for unconventional oil and
gas projects, including how any future royalties will support renewable energy
in this state?
Mr D.C. Nalder : The minister
against mining.
PROJECTS — ROYALTY RATE
985. Ms A. SANDERSON to the Minister for Mines and
Petroleum:
Can the minister update the house on
what changes are being made to the royalty regime for unconventional oil and
gas projects, including how any future royalties will support renewable energy
in this state?
Mr D.C. Nalder : The minister
against mining.
AnswerView source ↗
The one thing we know is that the
member for Bateman is not the minister.
What we know about unconventional
gas projects in this state is that the Liberal Party does not understand that
we need to be cautious, and that the community has concerns about these issues,
and that what we need to do is make sure that the industry is properly
regulated. I congratulate the Minister for State Development, Jobs and Trade—the
Premier—for working with every member of cabinet in coming up with an excellent
response to the Hatton inquiry into unconventional gas. I make the point here
that in 2010 the former government cut the royalty rate from 10 per cent to
five per cent for unconventional gas, as part of its campaign, according to the
former minister, Hon Norman Moore, to remove hurdles to fracking getting off
the ground in Western Australia. We are interested in having a properly
regulated industry that meets the demands of the community, and that is why we
are removing the concessional royalty rate and returning the royalty rate to
where it should have always been. Exactly as I said in this chamber in 2012,
the decision to cut the royalty rate from 10 per cent to five per cent was an
error, and we are correcting that error. What is more, we are going to direct
those royalties net of the royalties for regions contribution, which will still
be there—one-quarter for royalties for regions—but the balance
will go into a clean energy fund to support the transition of this society
towards a lower carbon future.
Mr D.C. Nalder : So you're
introducing a carbon tax.
The SPEAKER : Members!
Mr W.J. JOHNSTON : Gas has a role
to play in Western Australia's low-carbon future, but so do alternative
technologies, and the government is introducing an important contribution. The
member for Bateman interjects saying it is a carbon tax. The 10 per cent
royalty that applies to conventional gas that was left to us by the member is
apparently a carbon tax. Apparently when it applies to fracking it is a carbon
tax, but when he applied it to conventional projects it was not a carbon tax.
Mr D.C. Nalder interjected.
The SPEAKER : Member for
Bateman, I call you to order for the first time.
Mr W.J. JOHNSTON : One of the
fundamental problems with the Liberal Party is that it does not get science, it
does not respect the community and it makes decisions that are not based on
commonsense.
Several members interjected.
The SPEAKER : Members!
Several members interjected.
The SPEAKER : Is everyone
finished? I give the call to the member for Moore.
member for Bateman is not the minister.
What we know about unconventional
gas projects in this state is that the Liberal Party does not understand that
we need to be cautious, and that the community has concerns about these issues,
and that what we need to do is make sure that the industry is properly
regulated. I congratulate the Minister for State Development, Jobs and Trade—the
Premier—for working with every member of cabinet in coming up with an excellent
response to the Hatton inquiry into unconventional gas. I make the point here
that in 2010 the former government cut the royalty rate from 10 per cent to
five per cent for unconventional gas, as part of its campaign, according to the
former minister, Hon Norman Moore, to remove hurdles to fracking getting off
the ground in Western Australia. We are interested in having a properly
regulated industry that meets the demands of the community, and that is why we
are removing the concessional royalty rate and returning the royalty rate to
where it should have always been. Exactly as I said in this chamber in 2012,
the decision to cut the royalty rate from 10 per cent to five per cent was an
error, and we are correcting that error. What is more, we are going to direct
those royalties net of the royalties for regions contribution, which will still
be there—one-quarter for royalties for regions—but the balance
will go into a clean energy fund to support the transition of this society
towards a lower carbon future.
Mr D.C. Nalder : So you're
introducing a carbon tax.
The SPEAKER : Members!
Mr W.J. JOHNSTON : Gas has a role
to play in Western Australia's low-carbon future, but so do alternative
technologies, and the government is introducing an important contribution. The
member for Bateman interjects saying it is a carbon tax. The 10 per cent
royalty that applies to conventional gas that was left to us by the member is
apparently a carbon tax. Apparently when it applies to fracking it is a carbon
tax, but when he applied it to conventional projects it was not a carbon tax.
Mr D.C. Nalder interjected.
The SPEAKER : Member for
Bateman, I call you to order for the first time.
Mr W.J. JOHNSTON : One of the
fundamental problems with the Liberal Party is that it does not get science, it
does not respect the community and it makes decisions that are not based on
commonsense.
Several members interjected.
The SPEAKER : Members!
Several members interjected.
The SPEAKER : Is everyone
finished? I give the call to the member for Moore.
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