Question regarding the WorleyParsons contract for the Wheatstone LNG project and concerns about local content, with the Premier defending the contract and highlighting the benefits for WA businesses.

AnsweredQoN 686Legislative Assembly
Asked
18 October 2011
Portfolio
Premier

QuestionView source ↗

WHEATSTONE LIQUEFIED NATURAL GAS PROJECT — WORLEYPARSONS CONTRACT — LOCAL CONTENT
I refer to a media release of 7 October 2011 put out by Hon Simon O’Brien regarding local content, which states — “Just yesterday it was announced that WorleyParsons were awarded a $235million contract for construction management services on this project.” (1) Is the Premier aware that WorleyParsons’ own media statement reads — To execute this project, construction driven project teams will be located in Perth, Houston, onsite in Ashburton North and in selected fabrication yards in Asia. (2) Why should our community trust the Premier to be open and transparent about local content when it is clear that his minister has declined to admit that this WorleyParsons’ contract will see jobs and work undertaken overseas and away from Australian workshops? Mr C.J. BARNETT

AnswerView source ↗

(1)–(2) Local content is a serious and legitimate issue. However, one of the arguments that often gets run is that Western Australian or Australian business gets the last scraps out of projects. Here is WorleyParsons undertaking the lead role in a major part of the Wheatstone project, doing a lot of the engineering, a lot of the planning and a lot of the procurement. I thought that was exactly the smart stuff that we wanted to see being done by an Australian—in fact, a Western Australian—based business. So I think it is a good outcome. Mr W.J. Johnston : It’s not. It’s a Sydney-based business. It’s true. It’s not based in Perth. The SPEAKER : Member for Cannington! Several members interjected. Mr W.J. Johnston : You said it’s based in Perth and it’s not. It’s based in Sydney. Mr C.J. BARNETT : WorleyParsons is a great success story. It has grown out of the Western Australian resources industry and it is now a world company. It is a good story. So, continue to knock; continue to criticise. Meanwhile, we will get on with it and we will continue to secure these big projects for Western Australia, and we will continue to build the productive and engineering, design and construction capacity of this state. Again I remind members that 140 Western Australia–based businesses are doing work in Africa alone. The African mining industry is largely run out of West Perth. We will have the leadership of 24 African nations, I think, here in a week, and part of that, between the commonwealth and the state, will be promoting the services of the Australian mining industry, particularly the Western Australian mining industry, to Africa. That is the game; those opposite should get on it.
Mr C.J. BARNETT replied: (1)–(2) Local content is a serious and legitimate issue. However, one of the arguments that often gets run is that Western Australian or Australian business gets the last scraps out of projects. Here is WorleyParsons undertaking the lead role in a major part of the Wheatstone project, doing a lot of the engineering, a lot of the planning and a lot of the procurement. I thought that was exactly the smart stuff that we wanted to see being done by an Australian—in fact, a Western Australian—based business. So I think it is a good outcome. Mr W.J. Johnston : It’s not. It’s a Sydney-based business. It’s true. It’s not based in Perth. The SPEAKER : Member for Cannington! Several members interjected. Mr W.J. Johnston : You said it’s based in Perth and it’s not. It’s based in Sydney. Mr C.J. BARNETT : WorleyParsons is a great success story. It has grown out of the Western Australian resources industry and it is now a world company. It is a good story. So, continue to knock; continue to criticise. Meanwhile, we will get on with it and we will continue to secure these big projects for Western Australia, and we will continue to build the productive and engineering, design and construction capacity of this state. Again I remind members that 140 Western Australia–based businesses are doing work in Africa alone. The African mining industry is largely run out of West Perth. We will have the leadership of 24 African nations, I think, here in a week, and part of that, between the commonwealth and the state, will be promoting the services of the Australian mining industry, particularly the Western Australian mining industry, to Africa. That is the game; those opposite should get on it.
(1)–(2) Local content is a serious and legitimate issue. However, one of the arguments that often gets run is that Western Australian or Australian business gets the last scraps out of projects. Here is WorleyParsons undertaking the lead role in a major part of the Wheatstone project, doing a lot of the engineering, a lot of the planning and a lot of the procurement. I thought that was exactly the smart stuff that we wanted to see being done by an Australian—in fact, a Western Australian—based business. So I think it is a good outcome. Mr W.J. Johnston : It’s not. It’s a Sydney-based business. It’s true. It’s not based in Perth. The SPEAKER : Member for Cannington! Several members interjected. Mr W.J. Johnston : You said it’s based in Perth and it’s not. It’s based in Sydney. Mr C.J. BARNETT : WorleyParsons is a great success story. It has grown out of the Western Australian resources industry and it is now a world company. It is a good story. So, continue to knock; continue to criticise. Meanwhile, we will get on with it and we will continue to secure these big projects for Western Australia, and we will continue to build the productive and engineering, design and construction capacity of this state. Again I remind members that 140 Western Australia–based businesses are doing work in Africa alone. The African mining industry is largely run out of West Perth. We will have the leadership of 24 African nations, I think, here in a week, and part of that, between the commonwealth and the state, will be promoting the services of the Australian mining industry, particularly the Western Australian mining industry, to Africa. That is the game; those opposite should get on it.
Mr W.J. Johnston : It’s not. It’s a Sydney-based business. It’s true. It’s not based in Perth. The SPEAKER : Member for Cannington! Several members interjected. Mr W.J. Johnston : You said it’s based in Perth and it’s not. It’s based in Sydney. Mr C.J. BARNETT : WorleyParsons is a great success story. It has grown out of the Western Australian resources industry and it is now a world company. It is a good story. So, continue to knock; continue to criticise. Meanwhile, we will get on with it and we will continue to secure these big projects for Western Australia, and we will continue to build the productive and engineering, design and construction capacity of this state. Again I remind members that 140 Western Australia–based businesses are doing work in Africa alone. The African mining industry is largely run out of West Perth. We will have the leadership of 24 African nations, I think, here in a week, and part of that, between the commonwealth and the state, will be promoting the services of the Australian mining industry, particularly the Western Australian mining industry, to Africa. That is the game; those opposite should get on it.
The SPEAKER : Member for Cannington! Several members interjected. Mr W.J. Johnston : You said it’s based in Perth and it’s not. It’s based in Sydney. Mr C.J. BARNETT : WorleyParsons is a great success story. It has grown out of the Western Australian resources industry and it is now a world company. It is a good story. So, continue to knock; continue to criticise. Meanwhile, we will get on with it and we will continue to secure these big projects for Western Australia, and we will continue to build the productive and engineering, design and construction capacity of this state. Again I remind members that 140 Western Australia–based businesses are doing work in Africa alone. The African mining industry is largely run out of West Perth. We will have the leadership of 24 African nations, I think, here in a week, and part of that, between the commonwealth and the state, will be promoting the services of the Australian mining industry, particularly the Western Australian mining industry, to Africa. That is the game; those opposite should get on it.
Several members interjected. Mr W.J. Johnston : You said it’s based in Perth and it’s not. It’s based in Sydney. Mr C.J. BARNETT : WorleyParsons is a great success story. It has grown out of the Western Australian resources industry and it is now a world company. It is a good story. So, continue to knock; continue to criticise. Meanwhile, we will get on with it and we will continue to secure these big projects for Western Australia, and we will continue to build the productive and engineering, design and construction capacity of this state. Again I remind members that 140 Western Australia–based businesses are doing work in Africa alone. The African mining industry is largely run out of West Perth. We will have the leadership of 24 African nations, I think, here in a week, and part of that, between the commonwealth and the state, will be promoting the services of the Australian mining industry, particularly the Western Australian mining industry, to Africa. That is the game; those opposite should get on it.
Mr W.J. Johnston : You said it’s based in Perth and it’s not. It’s based in Sydney. Mr C.J. BARNETT : WorleyParsons is a great success story. It has grown out of the Western Australian resources industry and it is now a world company. It is a good story. So, continue to knock; continue to criticise. Meanwhile, we will get on with it and we will continue to secure these big projects for Western Australia, and we will continue to build the productive and engineering, design and construction capacity of this state. Again I remind members that 140 Western Australia–based businesses are doing work in Africa alone. The African mining industry is largely run out of West Perth. We will have the leadership of 24 African nations, I think, here in a week, and part of that, between the commonwealth and the state, will be promoting the services of the Australian mining industry, particularly the Western Australian mining industry, to Africa. That is the game; those opposite should get on it.
Mr C.J. BARNETT : WorleyParsons is a great success story. It has grown out of the Western Australian resources industry and it is now a world company. It is a good story. So, continue to knock; continue to criticise. Meanwhile, we will get on with it and we will continue to secure these big projects for Western Australia, and we will continue to build the productive and engineering, design and construction capacity of this state. Again I remind members that 140 Western Australia–based businesses are doing work in Africa alone. The African mining industry is largely run out of West Perth. We will have the leadership of 24 African nations, I think, here in a week, and part of that, between the commonwealth and the state, will be promoting the services of the Australian mining industry, particularly the Western Australian mining industry, to Africa. That is the game; those opposite should get on it.

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