❓ Mr. Nalder questions the Minister for Energy about potential state assistance to Griffin Coal regarding port infrastructure and electricity pricing, given the company's financial difficulties. The Minister denies any requests for bailouts and criticises past government interventions.
AnsweredQoN 721Legislative Assembly
QuestionView source ↗
GRIFFIN COAL — FINANCIAL DIFFICULTIES
721. Mr D.C. NALDER to the
Minister for Energy:
I note the financial
difficulties being experienced by Griffin Coal.
Several members
interjected.
The SPEAKER : Just hold it there, member for Alfred Cove.
Mr R.H. Cook interjected.
The SPEAKER : Thank you very much, member for Kwinana. I was going to just ask
members to stop talking across the chamber. Member for Kwinana, I call you to
order for the first time.
Mr D.C. NALDER : My question is —
(1) Has Griffin Coal asked the state to build
or augment port infrastructure at Bunbury port or anywhere else, an approach
proposed by the member for Cannington on 6PR yesterday morning?
(2) Has Griffin Coal requested that the
government pay more for electricity generated in the south west interconnected
system?
721. Mr D.C. NALDER to the
Minister for Energy:
I note the financial
difficulties being experienced by Griffin Coal.
Several members
interjected.
The SPEAKER : Just hold it there, member for Alfred Cove.
Mr R.H. Cook interjected.
The SPEAKER : Thank you very much, member for Kwinana. I was going to just ask
members to stop talking across the chamber. Member for Kwinana, I call you to
order for the first time.
Mr D.C. NALDER : My question is —
(1) Has Griffin Coal asked the state to build
or augment port infrastructure at Bunbury port or anywhere else, an approach
proposed by the member for Cannington on 6PR yesterday morning?
(2) Has Griffin Coal requested that the
government pay more for electricity generated in the south west interconnected
system?
AnswerView source ↗
(1)–(2) I thank the member for the question; it is a very good
one.
Mr W.J. Johnston : It doesn't sell electricity.
The SPEAKER : Member for Cannington, you are not answering the question. Minister.
Dr M.D. NAHAN : Lanco Infratech Ltd and Griffin Coal are
having some difficulties, and have been for a long time. The history of this is
that Griffin Coal was owned by Ric Stowe and the boys for many years. There has
been a long, sorry history in terms of government involvement. In the past,
governments kind of shovelled money into it and made Ric Stowe a very wealthy
man for a long time.
Mr M.P. Murray : You'll be shovelling the coal soon
because nobody will be pulling it out. You'll be the only one there!
The SPEAKER : Member for Collie–Preston!
Dr M.D. NAHAN : After renegotiating the coal contracts in
2004–05, Griffin Coal lost its contract with Verve Energy.
Mr M.P. Murray : They asked you to support it.
The SPEAKER : Member for Collie–Preston, I call you to order for the first
time.
Dr M.D. NAHAN : It went into receivership and Lanco
Infratech Ltd, an Indian firm, bought it. Lanco is a big firm; it came in and
paid premium money for Griffin Coal—I heard it was $700 million. It
knew what the price was, what the contracts were, that it was a difficult task
and that the mine was not in the best shape, and it struggled. The company has
had discussions with us. Its plan is to build a quite large port in two stages
to export, I think, about five million tonnes going towards 10 million to 20 million
tonnes.
I go back to the
member's question. On Tuesday this week the member for Collie–Preston
demanded that the Premier do what Labor did in the past; that is, bail it out—give
it some money. He referred to $15 million of royalty relief provided to
Gindalbie Metals Ltd and said that the same should be provided to Griffin Coal.
On 6PR, the member for Cannington said that the government is not doing
anything to help the company in terms of export. He stated —
You know if the Government really wanted to do something here they'd
be doing you know getting involved, getting their hands dirty and finding
solutions instead of just being commentators on the energy sector.
It is trying to bail
out the industry.
Mr R.H. Cook : That is a good quote. Well said, member!
The SPEAKER : Members!
Dr M.D. NAHAN : In today's The West Australian , Mr Trench of Griffin Coal is reported to have
said —
''We have not nor intend to burden the West Australian people
with any pricing issues relating to coal
Griffin Coal does not
sell any coal to Verve. There is no pressure on prices. We have no contract
with it. We have not been asked to help with the port upgrades. It has not come
to us to ask for a bailout. We are having discussions with PT Kaltim Prima
Coal. Lanco is having problems, but it is a commercial issue and it has to get
on with it. We are not going to do what Labor did in the 1980s; that is, every
time an owner of a coalfield squawked and could not make a return on their
heavy investment, it bailed them out.
Mr M.P. Murray : Keep it up and I will run again at the next
election.
The SPEAKER : Member for Collie–Preston!
one.
Mr W.J. Johnston : It doesn't sell electricity.
The SPEAKER : Member for Cannington, you are not answering the question. Minister.
Dr M.D. NAHAN : Lanco Infratech Ltd and Griffin Coal are
having some difficulties, and have been for a long time. The history of this is
that Griffin Coal was owned by Ric Stowe and the boys for many years. There has
been a long, sorry history in terms of government involvement. In the past,
governments kind of shovelled money into it and made Ric Stowe a very wealthy
man for a long time.
Mr M.P. Murray : You'll be shovelling the coal soon
because nobody will be pulling it out. You'll be the only one there!
The SPEAKER : Member for Collie–Preston!
Dr M.D. NAHAN : After renegotiating the coal contracts in
2004–05, Griffin Coal lost its contract with Verve Energy.
Mr M.P. Murray : They asked you to support it.
The SPEAKER : Member for Collie–Preston, I call you to order for the first
time.
Dr M.D. NAHAN : It went into receivership and Lanco
Infratech Ltd, an Indian firm, bought it. Lanco is a big firm; it came in and
paid premium money for Griffin Coal—I heard it was $700 million. It
knew what the price was, what the contracts were, that it was a difficult task
and that the mine was not in the best shape, and it struggled. The company has
had discussions with us. Its plan is to build a quite large port in two stages
to export, I think, about five million tonnes going towards 10 million to 20 million
tonnes.
I go back to the
member's question. On Tuesday this week the member for Collie–Preston
demanded that the Premier do what Labor did in the past; that is, bail it out—give
it some money. He referred to $15 million of royalty relief provided to
Gindalbie Metals Ltd and said that the same should be provided to Griffin Coal.
On 6PR, the member for Cannington said that the government is not doing
anything to help the company in terms of export. He stated —
You know if the Government really wanted to do something here they'd
be doing you know getting involved, getting their hands dirty and finding
solutions instead of just being commentators on the energy sector.
It is trying to bail
out the industry.
Mr R.H. Cook : That is a good quote. Well said, member!
The SPEAKER : Members!
Dr M.D. NAHAN : In today's The West Australian , Mr Trench of Griffin Coal is reported to have
said —
''We have not nor intend to burden the West Australian people
with any pricing issues relating to coal
Griffin Coal does not
sell any coal to Verve. There is no pressure on prices. We have no contract
with it. We have not been asked to help with the port upgrades. It has not come
to us to ask for a bailout. We are having discussions with PT Kaltim Prima
Coal. Lanco is having problems, but it is a commercial issue and it has to get
on with it. We are not going to do what Labor did in the 1980s; that is, every
time an owner of a coalfield squawked and could not make a return on their
heavy investment, it bailed them out.
Mr M.P. Murray : Keep it up and I will run again at the next
election.
The SPEAKER : Member for Collie–Preston!
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