❓ Question regarding the Muja AB refurbishment project, specifically whether the reported return on investment is calculated after the investment is written off. The exchange devolves into accusations and points of order.
AnsweredQoN 485Legislative Assembly
QuestionView source ↗
MUJA AB — REFURBISHMENT
485. Mr W.J. JOHNSTON to the Minister for Energy:
I have a supplementary question.
Ms M.M. Quirk interjected.
The SPEAKER : Member for
Girrawheen! I call you to order for the first time.
Mr W.J. JOHNSTON :
Can the minister confirm that the report indicates that the return he spoke of
is after the investment is written off?
485. Mr W.J. JOHNSTON to the Minister for Energy:
I have a supplementary question.
Ms M.M. Quirk interjected.
The SPEAKER : Member for
Girrawheen! I call you to order for the first time.
Mr W.J. JOHNSTON :
Can the minister confirm that the report indicates that the return he spoke of
is after the investment is written off?
AnswerView source ↗
The report is very detailed.
Mr W.J. Johnston :
Yes, and I just asked a simple question.
Dr M.D. NAHAN : It
lays out its methodology and says that its calculations do not include costs
already incurred—sunk costs—nor does it include portfolio
benefits, Verve's fixed costs, premium under steam and other factors.
It does not include the excise of Labor's carbon tax. It produces coal,
so that will help reduce costs significantly. However, Verve must include
these, so Verve's assessment is that once they are included, even
though this project has not worked out anywhere near what we hoped, if we had
to start again, we would not go down this path.
Mr B.S. Wyatt : You
might get a business case next time.
Dr M.D. NAHAN :
This project took birth under members opposite.
Mr W.J. Johnston :
That's not true. That's a lie; you know it's not true
and that makes it a lie.
Withdrawal of Remark
Mr J.M. FRANCIS :
The member for Cannington clearly made an allegation.
Dr A.D. Buti interjected.
The SPEAKER : There is a
withdrawal of remark on the go, member for Armadale, and it has to be heard in
silence. I call you to order for the first time.
Mr
J.M. FRANCIS : The member for Cannington clearly called the minister a liar,
Mr Speaker. It is unparliamentary and untrue, and I ask you to direct him to
withdraw.
Mr
W.J. JOHNSTON : I am happy to explain, because apparently you did not hear
what I said, Mr Speaker.
The
SPEAKER : There is no need for explanation; it is a withdrawal of remark.
Mr W.J. JOHNSTON :
I did not say he is a liar. That is not what I said. I said he lied, and I am
happy to withdraw that.
Questions without Notice Resumed
Several members interjected.
Dr M.D. NAHAN : I
think we saw the true character of the member for Cannington.
Mr W.J. Johnston :
I fessed up. We know your character; you won't admit what you said.
The SPEAKER : Members! Member for Cannington, I call
you to order for the first time. Minister, can you wind up this answer please?
Thank you.
Dr M.D. NAHAN : It
was a tough decision. We halted the refurbishment, had an investigation done
and tabled it in Parliament in full, in detail. Members opposite claimed that
we would not do it but we have done it. We made the decision on the basis that
it will provide benefits and it will be the best thing for the state. Members
opposite have to watch their position. They have sat there carping, complaining
and whining. The member for Collie–Preston is the only one who —
Mr
W.J. Johnston : You're the one in charge. What's your
problem?
The SPEAKER : Members! This is
question time. The minister is supposed to answer and people are trying to
drown him out. Can you wind up this answer, minister?
Dr
M.D. NAHAN : Yes; thank you very much, Mr Speaker. This was a tough decision
but it is the right decision. I look forward to members opposite supporting
this decision because it will add value for taxpayers and it will greatly help
the people of Collie.
Mr W.J. Johnston :
Yes, and I just asked a simple question.
Dr M.D. NAHAN : It
lays out its methodology and says that its calculations do not include costs
already incurred—sunk costs—nor does it include portfolio
benefits, Verve's fixed costs, premium under steam and other factors.
It does not include the excise of Labor's carbon tax. It produces coal,
so that will help reduce costs significantly. However, Verve must include
these, so Verve's assessment is that once they are included, even
though this project has not worked out anywhere near what we hoped, if we had
to start again, we would not go down this path.
Mr B.S. Wyatt : You
might get a business case next time.
Dr M.D. NAHAN :
This project took birth under members opposite.
Mr W.J. Johnston :
That's not true. That's a lie; you know it's not true
and that makes it a lie.
Withdrawal of Remark
Mr J.M. FRANCIS :
The member for Cannington clearly made an allegation.
Dr A.D. Buti interjected.
The SPEAKER : There is a
withdrawal of remark on the go, member for Armadale, and it has to be heard in
silence. I call you to order for the first time.
Mr
J.M. FRANCIS : The member for Cannington clearly called the minister a liar,
Mr Speaker. It is unparliamentary and untrue, and I ask you to direct him to
withdraw.
Mr
W.J. JOHNSTON : I am happy to explain, because apparently you did not hear
what I said, Mr Speaker.
The
SPEAKER : There is no need for explanation; it is a withdrawal of remark.
Mr W.J. JOHNSTON :
I did not say he is a liar. That is not what I said. I said he lied, and I am
happy to withdraw that.
Questions without Notice Resumed
Several members interjected.
Dr M.D. NAHAN : I
think we saw the true character of the member for Cannington.
Mr W.J. Johnston :
I fessed up. We know your character; you won't admit what you said.
The SPEAKER : Members! Member for Cannington, I call
you to order for the first time. Minister, can you wind up this answer please?
Thank you.
Dr M.D. NAHAN : It
was a tough decision. We halted the refurbishment, had an investigation done
and tabled it in Parliament in full, in detail. Members opposite claimed that
we would not do it but we have done it. We made the decision on the basis that
it will provide benefits and it will be the best thing for the state. Members
opposite have to watch their position. They have sat there carping, complaining
and whining. The member for Collie–Preston is the only one who —
Mr
W.J. Johnston : You're the one in charge. What's your
problem?
The SPEAKER : Members! This is
question time. The minister is supposed to answer and people are trying to
drown him out. Can you wind up this answer, minister?
Dr
M.D. NAHAN : Yes; thank you very much, Mr Speaker. This was a tough decision
but it is the right decision. I look forward to members opposite supporting
this decision because it will add value for taxpayers and it will greatly help
the people of Collie.
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