Hon. Norman Moore questions the Minister for Government Enterprises regarding discrepancies in the Water Corporation's capital works program for the Burrup water supply, specifically concerning funding figures and sources for the seawater pipeline and desalination plant. The Minister clarifies the cost breakdown and funding responsibilities.

AnsweredQoN 966Legislative Council
Asked
10 June 2003
Portfolio
Government Enterprises

QuestionView source ↗

I refer the minister to the questions on notice supplementary information provided by the minister in response to my questions during the estimates hearings about the Water Corporation’s capital works program and, in particular, to information on investment for the Burrup water supply. (1) Can the minister explain the difference between the figures of $61.1 million on page 3 and $76 million on page 8, both of which refer to capital expenditure for the Burrup in 2003-04? (2) Can the minister confirm whether the figures of $76 million and $4 million for the next two years as shown on page 8 reflect the full capital cost of the Burrup water supply development to the Government; and, if not, from where is any additional funding sourced and how much will there be? (3) Can the minister indicate how much money in 2003-04 and 2004-05 has been included in the Water Corporation’s payments to government as provision for Burrup infrastructure, as per the footnote to table 1, appendix 7, on page 223 of budget paper No 3? Hon NICK GRIFFITHS

AnswerView source ↗

I thank the member for some notice of this question. (1) The figure of $61.1 million represents the 2003-04 estimate of the cost of the seawater pipeline for Burrup Fertilisers Pty Ltd. The figure of $76 million that applies to 2003-04 is the estimate of the cost of the seawater pipeline and the desalination plant for Burrup Fertilisers. (2) The $76 million for 2003-04 and the $4 million for 2004-05 are the planned costs of the seawater pipeline and the desalination plant to serve Burrup Fertilisers. The Government is meeting the capital cost of the seawater pipeline. Revenue from Burrup Fertilisers will meet the costs of the desalination plant. No additional capital will be required until further expansion of industry on the Burrup Peninsula takes place. (3) The note refers to the inclusion of capital and operating costs and revenue for the Burrup projects in the Water Corporation’s projections. A total of 92 per cent of the profit is included in the dividend projections.
(1) Can the minister explain the difference between the figures of $61.1 million on page 3 and $76 million on page 8, both of which refer to capital expenditure for the Burrup in 2003-04? (2) Can the minister confirm whether the figures of $76 million and $4 million for the next two years as shown on page 8 reflect the full capital cost of the Burrup water supply development to the Government; and, if not, from where is any additional funding sourced and how much will there be? (3) Can the minister indicate how much money in 2003-04 and 2004-05 has been included in the Water Corporation’s payments to government as provision for Burrup infrastructure, as per the footnote to table 1, appendix 7, on page 223 of budget paper No 3? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. (1) The figure of $61.1 million represents the 2003-04 estimate of the cost of the seawater pipeline for Burrup Fertilisers Pty Ltd. The figure of $76 million that applies to 2003-04 is the estimate of the cost of the seawater pipeline and the desalination plant for Burrup Fertilisers. (2) The $76 million for 2003-04 and the $4 million for 2004-05 are the planned costs of the seawater pipeline and the desalination plant to serve Burrup Fertilisers. The Government is meeting the capital cost of the seawater pipeline. Revenue from Burrup Fertilisers will meet the costs of the desalination plant. No additional capital will be required until further expansion of industry on the Burrup Peninsula takes place. (3) The note refers to the inclusion of capital and operating costs and revenue for the Burrup projects in the Water Corporation’s projections. A total of 92 per cent of the profit is included in the dividend projections.
(2) Can the minister confirm whether the figures of $76 million and $4 million for the next two years as shown on page 8 reflect the full capital cost of the Burrup water supply development to the Government; and, if not, from where is any additional funding sourced and how much will there be? (3) Can the minister indicate how much money in 2003-04 and 2004-05 has been included in the Water Corporation’s payments to government as provision for Burrup infrastructure, as per the footnote to table 1, appendix 7, on page 223 of budget paper No 3? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. (1) The figure of $61.1 million represents the 2003-04 estimate of the cost of the seawater pipeline for Burrup Fertilisers Pty Ltd. The figure of $76 million that applies to 2003-04 is the estimate of the cost of the seawater pipeline and the desalination plant for Burrup Fertilisers. (2) The $76 million for 2003-04 and the $4 million for 2004-05 are the planned costs of the seawater pipeline and the desalination plant to serve Burrup Fertilisers. The Government is meeting the capital cost of the seawater pipeline. Revenue from Burrup Fertilisers will meet the costs of the desalination plant. No additional capital will be required until further expansion of industry on the Burrup Peninsula takes place. (3) The note refers to the inclusion of capital and operating costs and revenue for the Burrup projects in the Water Corporation’s projections. A total of 92 per cent of the profit is included in the dividend projections.
(3) Can the minister indicate how much money in 2003-04 and 2004-05 has been included in the Water Corporation’s payments to government as provision for Burrup infrastructure, as per the footnote to table 1, appendix 7, on page 223 of budget paper No 3? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. (1) The figure of $61.1 million represents the 2003-04 estimate of the cost of the seawater pipeline for Burrup Fertilisers Pty Ltd. The figure of $76 million that applies to 2003-04 is the estimate of the cost of the seawater pipeline and the desalination plant for Burrup Fertilisers. (2) The $76 million for 2003-04 and the $4 million for 2004-05 are the planned costs of the seawater pipeline and the desalination plant to serve Burrup Fertilisers. The Government is meeting the capital cost of the seawater pipeline. Revenue from Burrup Fertilisers will meet the costs of the desalination plant. No additional capital will be required until further expansion of industry on the Burrup Peninsula takes place. (3) The note refers to the inclusion of capital and operating costs and revenue for the Burrup projects in the Water Corporation’s projections. A total of 92 per cent of the profit is included in the dividend projections.
Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. (1) The figure of $61.1 million represents the 2003-04 estimate of the cost of the seawater pipeline for Burrup Fertilisers Pty Ltd. The figure of $76 million that applies to 2003-04 is the estimate of the cost of the seawater pipeline and the desalination plant for Burrup Fertilisers. (2) The $76 million for 2003-04 and the $4 million for 2004-05 are the planned costs of the seawater pipeline and the desalination plant to serve Burrup Fertilisers. The Government is meeting the capital cost of the seawater pipeline. Revenue from Burrup Fertilisers will meet the costs of the desalination plant. No additional capital will be required until further expansion of industry on the Burrup Peninsula takes place. (3) The note refers to the inclusion of capital and operating costs and revenue for the Burrup projects in the Water Corporation’s projections. A total of 92 per cent of the profit is included in the dividend projections.
I thank the member for some notice of this question. (1) The figure of $61.1 million represents the 2003-04 estimate of the cost of the seawater pipeline for Burrup Fertilisers Pty Ltd. The figure of $76 million that applies to 2003-04 is the estimate of the cost of the seawater pipeline and the desalination plant for Burrup Fertilisers. (2) The $76 million for 2003-04 and the $4 million for 2004-05 are the planned costs of the seawater pipeline and the desalination plant to serve Burrup Fertilisers. The Government is meeting the capital cost of the seawater pipeline. Revenue from Burrup Fertilisers will meet the costs of the desalination plant. No additional capital will be required until further expansion of industry on the Burrup Peninsula takes place. (3) The note refers to the inclusion of capital and operating costs and revenue for the Burrup projects in the Water Corporation’s projections. A total of 92 per cent of the profit is included in the dividend projections.
(1) The figure of $61.1 million represents the 2003-04 estimate of the cost of the seawater pipeline for Burrup Fertilisers Pty Ltd. The figure of $76 million that applies to 2003-04 is the estimate of the cost of the seawater pipeline and the desalination plant for Burrup Fertilisers. (2) The $76 million for 2003-04 and the $4 million for 2004-05 are the planned costs of the seawater pipeline and the desalination plant to serve Burrup Fertilisers. The Government is meeting the capital cost of the seawater pipeline. Revenue from Burrup Fertilisers will meet the costs of the desalination plant. No additional capital will be required until further expansion of industry on the Burrup Peninsula takes place. (3) The note refers to the inclusion of capital and operating costs and revenue for the Burrup projects in the Water Corporation’s projections. A total of 92 per cent of the profit is included in the dividend projections.
(2) The $76 million for 2003-04 and the $4 million for 2004-05 are the planned costs of the seawater pipeline and the desalination plant to serve Burrup Fertilisers. The Government is meeting the capital cost of the seawater pipeline. Revenue from Burrup Fertilisers will meet the costs of the desalination plant. No additional capital will be required until further expansion of industry on the Burrup Peninsula takes place. (3) The note refers to the inclusion of capital and operating costs and revenue for the Burrup projects in the Water Corporation’s projections. A total of 92 per cent of the profit is included in the dividend projections.
(3) The note refers to the inclusion of capital and operating costs and revenue for the Burrup projects in the Water Corporation’s projections. A total of 92 per cent of the profit is included in the dividend projections.

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