❓ Dr. Steve Thomas questions the Minister regarding increasing taxpayer funds allocated to the insolvent Griffin Coal liquidators, seeking details on the amounts, dates, and purposes of these payments, and questioning the open-ended nature of the financial support. The Minister defends the support as necessary for energy security and workforce stability, pending a commercial resolution.
AnsweredQoN 986Legislative Council
Asked
31 August 2023
Member
Portfolio
State and Industry Development, Jobs and Trade
QuestionView source ↗
GRIFFIN COAL — LIQUIDATOR
986. Hon Dr STEVE THOMAS to the minister representing the
Minister for State and Industry Development, Jobs and Trade:
I refer to my questions without
notice 584, 665 and 686 of June 2023 and 882 of August 2023 that revealed the blowout in liquidator grants, now totalling $27.3 million,
to the receivers and managers of the insolvent Griffin Coal.
(1) On what date
was the additional $4.1 million of taxpayers' money provided to the
receivers and managers of the insolvent Griffin Coal?
(2) On what dates
did the drawdowns occur, what were the specific amounts, and for what purpose
and to what entities, individuals, businesses or contractors were the payments
made?
(3) As at 31 August
2023, how many financial assistance agreements have been executed between the
state and Griffin Coal since December 2022, and what were the financial values
and variations of the additional FAAs and on what dates were they executed?
(4) Is there an
end point to the reckless drip-feed of taxpayers' money to the terminal
business model that is Griffin Coal?
(5) If no to (4), why not?
986. Hon Dr STEVE THOMAS to the minister representing the
Minister for State and Industry Development, Jobs and Trade:
I refer to my questions without
notice 584, 665 and 686 of June 2023 and 882 of August 2023 that revealed the blowout in liquidator grants, now totalling $27.3 million,
to the receivers and managers of the insolvent Griffin Coal.
(1) On what date
was the additional $4.1 million of taxpayers' money provided to the
receivers and managers of the insolvent Griffin Coal?
(2) On what dates
did the drawdowns occur, what were the specific amounts, and for what purpose
and to what entities, individuals, businesses or contractors were the payments
made?
(3) As at 31 August
2023, how many financial assistance agreements have been executed between the
state and Griffin Coal since December 2022, and what were the financial values
and variations of the additional FAAs and on what dates were they executed?
(4) Is there an
end point to the reckless drip-feed of taxpayers' money to the terminal
business model that is Griffin Coal?
(5) If no to (4), why not?
AnswerView source ↗
I thank the Leader of the
Opposition for some notice of the question. Again, it is a very long question.
(1) It was provided on 23 August
2023.
(2) The $4.1 million that was drawn down on 23 August
2023 funded costs essential for the ongoing operation of the mine,
including labour, fuel and maintenance, that were not covered by revenue
generated, noting that the customers do not currently pay a price for coal that
supports the stable operation of the mine. The Department of the Premier and
Cabinet disbursed the amount following KPMG's analysis of the
shortfall.
(3) The first
financial assistance agreement was executed on 11 January 2023. An amended
version of this agreement was executed on 19 May 2023. A further financial
assistance agreement, termed the process agreement, was executed on 14 August
2023.
(4)–(5)
The state government has provided support to stabilise Griffin Coal operations
to ensure energy system security for Western Australia and certainty for the
Collie workforce and community. The government remains of the firm belief that
Griffin Coal's financial difficulties should be resolved through
commercial agreement with Griffin Coal's customers, based on paying a price
for coal that supports the stable operation of the mine. Treasury has appointed
Ad Astra Corporate Advisory to assist the government with the discussions with
commercial parties with a view to facilitating this outcome.
Opposition for some notice of the question. Again, it is a very long question.
(1) It was provided on 23 August
2023.
(2) The $4.1 million that was drawn down on 23 August
2023 funded costs essential for the ongoing operation of the mine,
including labour, fuel and maintenance, that were not covered by revenue
generated, noting that the customers do not currently pay a price for coal that
supports the stable operation of the mine. The Department of the Premier and
Cabinet disbursed the amount following KPMG's analysis of the
shortfall.
(3) The first
financial assistance agreement was executed on 11 January 2023. An amended
version of this agreement was executed on 19 May 2023. A further financial
assistance agreement, termed the process agreement, was executed on 14 August
2023.
(4)–(5)
The state government has provided support to stabilise Griffin Coal operations
to ensure energy system security for Western Australia and certainty for the
Collie workforce and community. The government remains of the firm belief that
Griffin Coal's financial difficulties should be resolved through
commercial agreement with Griffin Coal's customers, based on paying a price
for coal that supports the stable operation of the mine. Treasury has appointed
Ad Astra Corporate Advisory to assist the government with the discussions with
commercial parties with a view to facilitating this outcome.
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