❓ Mr. Murray questions the Premier about extending royalty concessions, similar to those given to Gindalbie Metals, to Griffin Coal to protect jobs and ensure power supply. The Premier declines, citing the unstable coal industry and the need for reform, but assures power supply security.
AnsweredQoN 691Legislative Assembly
QuestionView source ↗
GINDALBIE METALS LTD — ROYALTY CONCESSION
691. Mr M.P. MURRAY to the
Premier:
I refer to the granting of royalty concessions to Gindalbie
Metals Ltd earlier this year worth $15 million and the difficulties currently
being faced by Griffin Coal.
(1) Will the
Premier commit to providing similar assistance to Griffin Coal to ensure that
vital jobs are not lost to Western Australians?
(2) Given the
summer peak energy season is almost upon us, what plans are in place to ensure
consistency of supply to the south west grid if Griffin Coal is unable to
provide coal to the Bluewaters power station?
691. Mr M.P. MURRAY to the
Premier:
I refer to the granting of royalty concessions to Gindalbie
Metals Ltd earlier this year worth $15 million and the difficulties currently
being faced by Griffin Coal.
(1) Will the
Premier commit to providing similar assistance to Griffin Coal to ensure that
vital jobs are not lost to Western Australians?
(2) Given the
summer peak energy season is almost upon us, what plans are in place to ensure
consistency of supply to the south west grid if Griffin Coal is unable to
provide coal to the Bluewaters power station?
AnswerView source ↗
(1)–(2)
No, we will not be giving royalty concessions to Griffin Coal or to Lanco Infratech,
which is that project, or the other one known as Premier Coal, which is —
Mr M.P. Murray :
Yancoal.
Mr C.J. BARNETT :
Yancoal, yes.
Not to Lanco, not to Yancoal, not to Premier and not to
Griffin. However, I acknowledge that the coal industry in Collie is in a highly
unstable situation; there is no doubt about it. The state government is working
closely with it and watching events very carefully. Some fundamental reform is
needed within that industry, particularly relating to the ownership of the
mines and the way in which that coal deposit is mined. I think the member for
Collie–Preston would probably agree with me on that. They are primarily
commercial matters. The state is ensuring that there will be no risk to power supplies,
and we are confident of that. Both mines now have overseas ownership and each
has expectations about what might happen with coal exports. The government has
a desire for a stable coal supply and we are not inflexible on price. We also
expect coal companies to negotiate in good faith with other coal consumers and
prospective coal consumers such as Perdaman Industries, but there has been a
reluctance to do that. These two companies are walking a tightrope at a high
financial risk to themselves. It is a very unstable situation and the state
government is doing the proper thing, but we are not going to get into business
arrangements, as happened previously in this state's history.
Several members interjected.
Mr C.J. BARNETT :
No, we are not. We are not going to do what the Labor government did in the
1980s, that is for sure.
No, we will not be giving royalty concessions to Griffin Coal or to Lanco Infratech,
which is that project, or the other one known as Premier Coal, which is —
Mr M.P. Murray :
Yancoal.
Mr C.J. BARNETT :
Yancoal, yes.
Not to Lanco, not to Yancoal, not to Premier and not to
Griffin. However, I acknowledge that the coal industry in Collie is in a highly
unstable situation; there is no doubt about it. The state government is working
closely with it and watching events very carefully. Some fundamental reform is
needed within that industry, particularly relating to the ownership of the
mines and the way in which that coal deposit is mined. I think the member for
Collie–Preston would probably agree with me on that. They are primarily
commercial matters. The state is ensuring that there will be no risk to power supplies,
and we are confident of that. Both mines now have overseas ownership and each
has expectations about what might happen with coal exports. The government has
a desire for a stable coal supply and we are not inflexible on price. We also
expect coal companies to negotiate in good faith with other coal consumers and
prospective coal consumers such as Perdaman Industries, but there has been a
reluctance to do that. These two companies are walking a tightrope at a high
financial risk to themselves. It is a very unstable situation and the state
government is doing the proper thing, but we are not going to get into business
arrangements, as happened previously in this state's history.
Several members interjected.
Mr C.J. BARNETT :
No, we are not. We are not going to do what the Labor government did in the
1980s, that is for sure.
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