2008-10-21
Power and Water Corporation –
Electrical Maintenance
Electrical Maintenance
Mr MILLS to CHIEF MINISTER
Is it not the case that, as a result of the Blanch report, you knew full well that Darwin’s electrical system was in real risk of collapse? Further, to help your government to prepare for the eventual political fall out, you employed former Electrical Trades Union boss, Alan Paton, in your office to help manage any politically damaging fall out? Is it not a fact that, rather than fix the electricity systems’ very expensive problems you ran to an early election to avoid voter backlash?
ANSWER
Madam Speaker, I thank the Leader of the Opposition for his question. The first thing the Leader of the Opposition needs to do is to tell the truth.
Madam SPEAKER: Please pause, Chief Minister, would you mind resuming your seat? Opposition members, I would ask you to remove the candles from your desk. It is the usual protocol not to have props …
Mr Mills: We cannot bring the generators in, Madam Speaker.
Madam SPEAKER: Leader of the Opposition, I ask you to have your members remove the props from their desks, thank you.
Thank you, opposition members. Chief Minister, you have the call.
Mr HENDERSON: Madam Speaker, the first responsibility of the Leader of the Opposition is to tell the truth and to take this issue seriously. It is a serious issue, and that has been acknowledged by the minister, and me as Chief Minister.
The truth is that the CLP ripped the guts out of Power and Water. They sacked more than 100 workers on the front line, ripped the guts out of Power and Water …
Members interjecting.
Madam SPEAKER: Order!
Mr HENDERSON: … because the truth was, they do not like to hear …
Members interjecting.
Madam SPEAKER: Order! Chief Minister, you have the call.
Mr HENDERSON: Thank you, Madam Speaker. They do not like the truth. We have to rebuild Power and Water from the time when they were in office, ripping the guts out of Power and Water, sacking over 100 workers, and ripping out over $90m-worth of Power and Water’s budget. We are rebuilding the organisation that the CLP pulled apart.
Members interjecting.
Madam SPEAKER: Order!
Mr HENDERSON: They launched the Merrill Lynch inquiry in 1998, and it was very clear, because they wanted to improve the financial balance sheet of Power and Water so they could sell it. Their own budget was in such a mess, in such a black hole, that one of the ways out of the black hole was to improve the balance sheet of Power and Water, rip the guts out of it …
Members interjecting.
Madam SPEAKER: Order!
Mr HENDERSON: … sack over 100 people in order to improve – on paper – the financial look of the company so they could sell it.
Mr Giles: It is all about the blame game. Blame somebody else.
Madam SPEAKER: Member for Braitling, cease interjecting!
Mr HENDERSON: Thank God we were elected in 2001 to reverse this plan.
Mr Bohlin interjecting.
Madam SPEAKER: Member for Drysdale, cease interjecting.
Mr HENDERSON: Madam Speaker, we were elected in 2001 and, since that time, we have been rebuilding Power and Water. The Blanch report was commissioned by the government to look at the structural issues in regard to an expanding economy and the capacity of Power and Water to deliver. That report was commissioned in 2006. It was presented to government in December 2006, and it highlighted that Power and Water was in a very serious condition …
Mr Giles: What did you do about it?
Mr HENDERSON: … in terms of problems with future growth and meeting electricity generation demand, looking at …
Mr Giles: And did nothing but let the power go out.
Mr HENDERSON: If you want to listen to the story, you might learn something, instead of interjecting all the time. Listen and you might learn.
Mr Giles: You have been in charge for eight years and the power is still going out.
Madam SPEAKER: Order! Member for Braitling, cease interjecting. Chief Minister, you have the call.
Members interjecting.
Madam SPEAKER: Order!
Mr HENDERSON: Thank you, Madam Speaker. They ask the questions but they do not want to listen to the answers.
Mr Mills: Well, you are not giving us the answer.
Mr HENDERSON: It is not the answer you want because it is the truth.
Members interjecting.
Madam SPEAKER: Order!
Ms LAWRIE: A point of order, Madam Speaker! Madam Speaker, you wrote to all members of the Assembly about the incessant interjecting in Question Time. You wrote about the impact it has on the public who want to hear the answers, and also the impact it has on Hansard. They clearly have not taken notice of your correspondence.
Madam SPEAKER: Thank you, Leader of Government Business. Chief Minister, resume your seat.
Honourable members, I draw your attention once again to Standing Order 51:
- No Member may converse aloud or make any noise or disturbance which in the opinion of the Speaker is designed to interrupt or has the effect of interrupting a Member speaking.
Mr HENDERSON: Madam Speaker, the documents that were tabled by my colleague, the Essential Services Minister, in this House during the statement before lunch very clearly show the additional financial contribution that this government has made over the last five or six years. With a very complex organisation, delivering power, water and sewerage services across the Northern Territory, to rebuild an organisation that had been decimated overnight is impossible.
Over the last six years of the CLP government, as well as sacking over 100 workers and ripping out $90m of the budget of Power and Water, they removed $78m in dividends but only put back $92m in repayments.
Mr TOLLNER: A point of order, Madam Speaker! The question was rather specific. It was about whether the Chief Minister was aware that the electricity problems were occurring before the election, and is this not the reason he went to an early election? He is clearly not answering the question.
Madam SPEAKER: Member for Fong Lim, resume your seat. The Chief Minister is still answering the question.
Mr HENDERSON: Thank you, Madam Speaker. The question has to be taken in context. There was $78m in dividends, but only $92m in repayments. Over a similar six year period, this government took out $78m in dividends but put back about $393m in CSO payments and capital payments to Power and Water. The CLP, over a six year period, put in $361m in capital and repairs and maintenance. Over the same period, we doubled that, $736m. As a result of the Blanch report which was handed down in December 2006, in the 2007-08 budget, the first budget period after that report was handed down, we made a commitment of an additional $1bn into this organisation over the next five years.
Members interjecting.
Madam SPEAKER: Order! Member for Brennan, cease interjecting.
Mr HENDERSON: In regard to what has happened, I stand here as Chief Minister and say that it is unacceptable. For residents in the northern suburbs to have suffered the outages that they had to is unacceptable. It is the responsibility of government to do something about it and to be open, honest, and true to Territorians in regard to what has happened. The minister has given an outline of that today. We have commissioned independent advice to Power and Water from the best experts that we can find across government …
Mr TOLLNER: A point of order, Madam Speaker! I call your attention to Standing Order 67. If the Chief Minister wants to be open and honest, he should answer the question as to whether he knew the power system was going to fail prior to the election, which is the reason he called an early election.
Madam SPEAKER: Member for Fong Lim, there is no point of order. Resume your seat. The Chief Minister is still answering the question.
Mr HENDERSON: Thank you, Madam Speaker. We have been open and transparent with Territorians regarding the failure of the Casuarina Zone Substation.
Mr Elferink: You were just dishonest. You just said CSO payments went to that.
Madam SPEAKER: Member for Port Darwin, I ask you to withdraw that comment.
Mr ELFERINK: Madam Speaker, I withdraw that CSO payments were not made to the Casuarina Zone Substation.
Madam SPEAKER: Member for Port Darwin, I ask you to withdraw unreservedly the comments about dishonesty.
Mr ELFERINK: Madam Speaker, I withdraw dishonest.
Mr HENDERSON: Thank you, Madam Speaker. We are being open with Territorians. We have been open from …
Members interjecting.
Mr HENDERSON: Madam Speaker, what is the point of Question Time if ministers cannot answer questions without interjections? The residents in the northern suburbs are pretty keen to hear this answer and not the rabble opposite interjecting.
Members interjecting.
Madam SPEAKER: Order! Opposition members, I ask you to cease interjecting. Member for Greatorex, cease interjecting.
Mr HENDERSON: Thank you, Madam Speaker. We are being open with Territorians. We commissioned independent expert advice, the best advice that we could source, to investigate what has happened to Casuarina Zone Substation and provide …
Mr TOLLNER: A point of order, Madam Speaker! I will again draw your attention to Standing Order 67. Can you please direct the Chief Minister to come to the question?
Madam SPEAKER: Member for Fong Lim, resume your seat. The Chief Minister has the call, and is answering the question. He is still answering the question …
Mr Tollner interjecting.
Madam SPEAKER: Member for Fong Lim, resume your seat.
Mr TOLLNER: A point of order, Madam Speaker! The Chief Minister has been waffling now for almost 10 minutes and he has not addressed at all the question. …
Madam SPEAKER: Member for Fong Lim, resume your seat. Chief Minister, you have the call.
Mr HENDERSON: Thank you, Madam Speaker. The answer could have concluded five minutes ago if it was not for the interjections. They are wasting their own Question Time.
We have commissioned the independent expert advice. That advice will be made public. We have put in place redundancy capacity with generators throughout the northern suburbs to safeguard the power supply if there is another serious, significant event, as Territorians would expect us to do.
In regard to the question, the Blanch report did not, in any way, shine a light and highlight the fact the Casuarina Zone Substation was at an imminent point of failure. It did not do that. I have asked Andrew Macrides, the CEO of Power and Water, and also Neil Philip, the Chair of the Board of Power and Water, if there was any other technical information that had either gone to the board, or gone to the CEO, or anywhere else in that organisation, that highlighted that the Casuarina Zone Substation was at an imminent point of failure, and the answer was ‘no’.
INPEX Project – Impact on Territory
Mr GUNNER to CHIEF MINISTER
On 26 September, INPEX Chairman, Mr Kuroda, announced Darwin as the preferred site for the Ichthys gas field project. Can the Chief Minister advise the House what this will mean for the Territory?
ANSWER
Madam Speaker, I thank the member for Fannie Bay for his question. 26 September was an historic day for the Northern Territory. The announcement by Mr Kuroda that INPEX had chosen Darwin as the site for their multibillion dollar LNG plant was a very exciting day for all the Northern Territory …
Mr Wood: You have already told everyone. You have spent a fortune putting these out.
Madam SPEAKER: Order, member for Nelson!
Mr HENDERSON: This announcement and the project that follows it will help underpin the Territory’s economy for decades to come. It could not have come at a better time for the Northern Territory, and confidence in our economy, with what is happening on global financial markets at the moment. Every Territorian wakes up every morning wondering what has happened on financial markets overnight, how it is going to impact the following day in the Territory …
Members interjecting.
Madam SPEAKER: Order, order!
Mr HENDERSON: The rabble opposite may not be interested in what is happening on global financial markets and how the Territory is placed, but I am sure the people who are listening to this broadcast want to hear about the impact of this crisis on the Northern Territory, and the confidence in the economy to ensure that businesses can still operate, and people can still have jobs in the Northern Territory as we ride out what is happening around the world.
The timing of this announcement could not have come at a better time in regard to an insurance policy for the future growth of our economy over decades to come.
I am proud the hard work we have undertaken has paid off. The hard work starts now for INPEX doing the detailed engineering and design work that could cost the company up to $250m. Much of that work will come to the Northern Territory. The impact of the 2000 to 3000 jobs that will be delivered during the construction phase will be a major boost to our economy.
We talk about billions of dollars, but let us look at the impact on small business. If 2000 people spend, say, $50 per week on takeaway food, that is an extra $5.2m into that sector of small business in the Territory. If 2000 additional people spend $20 per weekend at the Parap, Rapid Creek and Nightcliff markets, that is an extra $2.8m to those small stallholders …
Members interjecting.
Madam SPEAKER: Order! Member for Fong Lim, cease interjecting!
Mr HENDERSON: The rabble opposite think it is funny, Madam Speaker. I am sure the small stallholders at those markets would be very excited to know what this might mean for their small businesses. If 500 additional people go to the movies once a week, that is an additional $6000 a week for cinemas across the Northern Territory.
Much more work needs to be done. My government will be working hard with the company to see that final investment decision come to the Northern Territory. Our government, together with the federal government, will ensure that there is a rigorous environmental assessment process that complies with both the Territory regulations and Commonwealth legislation. The Environment minister will have carriage of that. There are no shortcuts here; it is absolutely a rigorous process in regard to our legislation and the Commonwealth legislation. We will be providing a detailed statement later.
Madam Speaker, we believe in this project. We still have chortling and negativity from members opposite. We believe in this project because it is about jobs for people. It is about jobs for Territorians, and the future of the Territory, and underpinning confidence in our economy. I am proud that we have got this far with this project. We still have a long way to go. However, the chortling and the negativity of members opposite continues towards this project. We believe it, we have from day one, and we will deliver it for the Northern Territory.
McArthur River Mine – Refund of
Royalties for Lack of Power Generation
Royalties for Lack of Power Generation
Mr MILLS to CHIEF MINISTER
So far this year, at the McArthur River Mine, three Power and Water generators have failed, requiring the company to bring in temporary generators at considerable cost. It has not had any Power and Water services since last month, and the gas pipeline, worth tens of millions of dollars, is now a stranded asset. Can you confirm whether McArthur River Mine has sought a refund of the royalties paid to your government?
ANSWER
Madam Speaker, I thank the Leader of the Opposition for his question. I have not been briefed on those issues at all, so I am unable to make a response.
INPEX Project – Preparation by Government
Mr McCARTHY to CHIEF MINISTER
The INPEX project is the largest resource project in Australia’s history to date. It presents the Territory with opportunities and challenges. Can the Chief Minister advise the House what he is doing to prepare the Territory for the arrival of this project?
ANSWER
Madam Speaker, I thank the member for Barkly for his question ...
Members interjecting.
Mr HENDERSON: The opposition is still treating this as a joke; they still think it is funny.
This project, as well as presenting great opportunities …
Mr Giles interjecting.
Madam SPEAKER: Order, member for Braitling, cease interjecting!
Mr HENDERSON: This project will provide great opportunities and thousands of jobs for Territorians, but it also creates some issues for the Territory. As I have said before, we are going through growing pains in the Northern Territory. That is a much better set of problems to have, I can honestly say, than when we came to government in 2001 when the economy was on its knees and people were leaving the Territory in droves, given the ineptitude of the financial management of previous CLP governments.
We are working hard to ensure that we are fully prepared for the growth when it comes once this project reaches a final investment decision and workers start to arrive in the Northern Territory. We are releasing a record amount of land for housing. Four new suburbs are being released at record pace - approximately 3700 new blocks of land over the years 2009 to 2012. It is the most ambitious land release project the Territory has ever seen. A total of 15% of those blocks will be for affordable housing; that is, 555 blocks of affordable housing for new homebuyers. Others will be available from 2009 onwards.
We are also undergoing a major exercise in refocusing the government’s housing policies, aimed at providing more affordable housing, more affordable rental, and more appropriate public housing. This policy will be released early next year. In the meantime, the decision by INPEX to construct a workers camp will take some of the pressure off the local housing industry. We are also working with the Defence Housing Authority on their land releases at Lyons and Muirhead. Collectively, this will add a further 1000 blocks for land release at this time, bringing total land release for new housing to around 4700 lots of land over the next few years.
We are also building a new primary school and middle school at Rosebery to accommodate over 800 students. We are improving health services, with the Commonwealth government, with the Palmerston Super Clinic which will provide 24 hour health care; additional ambulance services in the Palmerston region; and an absolute commitment to ensure that our small businesses, medium-size businesses and large businesses benefit from the INPEX project through having specific major project forums and working through the NTICN to ensure that Territory business get their share of the work.
It is an exciting time in the Northern Territory. This is a project that will underpin confidence in our economy for decades to come. I urge the opposition to get on board with it.
McArthur River Mine – Refund of Royalties
Mr MILLS to TREASURER
Can you confirm whether McArthur River Mining has sought a refund of royalties paid to the Henderson government? Is this the case or not?
ANSWER
Madam Speaker, I am happy to take the question. The issue of royalties is actually related to profit levels not to the electricity supply. The Leader of the Opposition chortles, but he has asked a question and I am answering it.
I am advised that the electricity is provided by an independent operator on licence to the Power and Water Corporation. I am seeking further advice.
INPEX Project – Impact on Economy
Ms WALKER to TREASURER
Can you update the House on the potential impacts the INPEX project will have on the economy of the Northern Territory?
ANSWER
Madam Speaker, I thank the member for Nhulunbuy for her very important question. First, I thank the Chief Minister, and the previous Chief Minister, Clare Martin, on the extraordinary achievement of landing the INPEX project in Darwin. Without the hard work and commitment of our Chief Ministers, this project would have gone elsewhere. Many people considered it to be an almost impossible option of coming to Darwin. It was the aggressive work undertaken by our Chief Minister, travelling to Tokyo and to Paris, to aggressively engage with the companies to bring this all important project to the Territory. He did this in the context of our economy being the strongest growing economy in the nation.
As we have seen with the global financial crisis, it is extremely prudent that we now have a major project coming here which will really help to firewall our small economy against the impact of the global financial crisis, which has a way to go yet.
The INPEX project is important to economic sustainability for the Territory. Major projects underpin the small economy of the Northern Territory. While some of the benefits of the INPEX project are obvious, that is, the thousands of jobs for a start, the government has engaged ACIL Tasman to undertake a study to fully assess the impact that such a project would have on our economy.
In relation to growth, the study found that the project will, indeed, have a significant impact, not only the Northern Territory Gross State Product, our GSP, but also the Australian Gross Domestic Product, the nation’s GDP. The study found that by 2015 this project will have increased GSP by 19.9%, that is, $3.3bn above the business-as-usual reference case. Another way of looking at that is to understand that by 2015 the project will add to the Territory economy around the entire amount of the current Northern Territory government budget. By 2015, the Australian Gross Domestic Product will increase by 0.47%. Half a percent might not sound like much, but, for one individual project to increase the Australian economy by 0.5% is very substantial.
The overall injection into our economy over the decades is expected to be around $50bn. The ACIL Tasman report found similar positive impacts through a range economic indicators - employment, construction and international trade. With such a significant increase in economic growth, we know and acknowledge that there is also the potential for inflationary pressure. The report noted this, but pointed out that past experience in the Territory suggests that this inflationary pressure may not be as high as the value of the investment project might at first imply.
This project sets up the Territory’s economy for decades. In these uncertain times, Territorians can be grateful. Our Chief Minister has pulled off the heist of the century and brought INPEX to Darwin.
Power and Water Corporation - Cost of Backup Generators and Increases to Power Bills
Mr ELFERINK to Minister for Essential Services
What is the cost of bringing in the backup generators, both hire and transport; the cost of fuel for running them while they are here; how long will they be here for; and can you categorically rule out increases to power bills of Territorians as a result of these costs?
ANSWER
Madam Speaker, I believe the member for Port Darwin needs to watch the news. There has been public comment about the cost, approximately $6m, made by the …
Members interjecting.
Madam SPEAKER: Order! Minister, please direct your comments through the Chair.
Mr KNIGHT: This is not a joke, members of the opposition, this is a serious matter. Power outages did occur quite regularly under the previous government, and, very regularly …
Members interjecting.
Madam SPEAKER: Order!
Mr KNIGHT: The CEO of Power and Water has made public comment on the cost of these generators and the duration they would be here. I have made a statement that those costs will be borne by Power and Water. It is very clear.
This organisation was being gutted and stripped to the bone by the CLP government. When we got to it, it was very timely, because they had gone through 114 employees; they were working their way to 300 employees based on the Merrill Lynch report. They were stripping it down, putting a gloss of paint over it to flog it off - flog it off to who knows - one of their mates, probably.
Mr ELFERINK: A point of order, Madam Speaker! I asked whether the minister was going to increase power bills as a result of these generators. Is he going to do it or not? It is a simple yes or no answer.
Madam SPEAKER: There is no point of order. The minister is still answering the question.
Mr KNIGHT: Madam Speaker, I have answered the question regarding the cost of the generators and who would bear the cost of those generators.
The point I want to make is: if the CLP had their way on stripping this organisation to the bone and flogging it off, we would have power prices through the roof. Where would Power and Water be today if it was not for the Labor government rebuilding it when they came to office, putting huge amounts of money in? $1bn was committed by this government to rebuilding an organisation which had been run down, stripped to the bone, starved …
Members interjecting.
Madam SPEAKER: Order! Minister, you have the call.
Mr KNIGHT: Those are the facts of this matter. We have taken responsibility for our time in government and for …
Mr ELFERINK: A point of order, Madam Speaker! The question is quite straightforward: will the costs of this exercise that is being run at the moment be passed on to the consumers of power in the Northern Territory?
Madam SPEAKER: Member for Port Darwin, the minister is answering the question. Minister, you have the call.
Mr KNIGHT: Thank you, Madam Speaker. I say again to the member for Port Darwin, the cost of the generators will be borne by Power and Water. We have taken responsibility; we have been open and up-front. I have offered briefings to the Leader of the Opposition when this matter reached a serious point. I have been very open and up-front. We have taken responsibility for the time that we have been in government, and we stand by the record investment and rebuild we have put into this.
Everyone needs to take responsibility. What I have not heard, in these weeks gone past or today, is any responsibility being taken by the opposition for their time in government …
Members interjecting
Madam SPEAKER: Order!
Mr TOLLNER: A point of order, Madam Speaker! I draw your attention to page 552 of House of Representatives Practice, the last paragraph, where it says:
- The only provision in the standing orders which deals specifically with the form and content of answers to questions is the requirement that an answer must be relevant to the question.
I point out to you, Madam Speaker, this is absolutely irrelevant to the question that was asked.
Madam SPEAKER: Member for Fong Lim, resume your seat. The minister has the call and he is still answering the question.
Mr KNIGHT: Madam Speaker, I will wrap up. We have been very honest and up-front. The CLP has been deceitful in the public statements they have made. They have not been honest. We will rebuild Power and Water to be one of the best power generators in the country.
INPEX Project – Demand for Skilled Workers
Mr McCARTHY to MINISTER for EDUCATION and TRAINING
The decision by INPEX to make Darwin the preferred site for its LNG plant is exciting news. What is the government doing to prepare our workforce for the demand for skilled workers?
ANSWER
Madam Speaker, I thank the member for Barkly for his question. It is an exciting time for the Territory. INPEX will bring great job opportunities, and that means opportunities for many Territory families. To make the most of these opportunities, we must ensure that our workforce is ready.
This government is committed to providing quality training for Territorians. I am proud to say that this government set a target of 10 000 new trainees and apprentices, and we have met that goal. We are not stopping there. As I have announced previously, we added an additional $1m to reach a new target of 10 000 trainees and apprentices.
The Territory has the highest participation rate of VET students in the country. We are continuing to see a growing number of Territorians undertaking trade apprenticeships in skills shortage occupations. At present, in the Northern Territory, 49% of Territorians are in training in trade occupations which are experiencing a skills shortage. This percentage is one of the highest in Australia.
Over 23% of those trainees and apprentices are Indigenous. We are very proud of this achievement. Last week, 16 Indigenous trainees graduated from a course in essential skills for the gas and oil industry. This is just one example of training our government is providing which will lead to job opportunities with INPEX and its contractors. Already, most of these Indigenous graduates have entered employment within the industry. These trainees have graduated in core skills including first aid; occupational health and safety; fatigue management; operational forklift; and, driving heavy vehicles. They have also completed specific training in crane operations; working safely at heights; and, in confined spaces.
As our gas and oil industry grows, so too will the demand for these skills. The Northern Territory economy is continuing to grow, and we have the lowest unemployment rate in the country. INPEX will bring even greater opportunities for employment to the Territory. This is good news for all Territorians, and it means economic stability with the certainty of jobs. INPEX will bring great opportunities, and we are ready and preparing our workforce for INPEX.
Power and Water Corporation - Cost of Backup Generators and Increases to Power Bills
Mr ELFERINK to MINISTER for ESSENTIAL SERVICES
The minister has said that Power and Water is going to pick up the costs of the current crisis. Will they pass those costs on to consumers? If so, how much will those power rates go up?
ANSWER
Madam Speaker, I have answered this question before. What the CLP is up to is quite cute and tricky. They do not want to take responsibility for themselves.
Members interjecting.
Madam SPEAKER: Order!
Mr KNIGHT: The costs of those …
Ms Carney: Did we win the election? Did we win?
Madam SPEAKER: Order! Member for Araluen, cease interjecting!
Ms Carney: Sorry, Madam Speaker.
Mr KNIGHT: The opposition well knows that Power and Water has contingency costs built into its budgets for a whole range of eventualities. If there is a cyclone, or another major failure, they have those built into their budgets. The costs of these generators will be borne by Power and Water. They will …
Mr Elferink: And passed on to? Passed on to the consumer.
Madam SPEAKER: Order, member for Port Darwin. Order!
Mr KNIGHT: Madam Speaker …
Mr Elferink: You guys are outrageous.
Madam SPEAKER: Order! Resume your seat. Member for Port Darwin, you have asked the Minister for Essential Services a question. I would like you to cease interjecting so the minister can attempt to answer the question, please.
Mr KNIGHT: Thank you, Madam Speaker. As I said, I have been very open and up-front. The cost will be borne by Power and Water, as a whole range of costs is borne by Power and Water. They factor that into their budgets. This is not the first time that costs have been borne in a whole range of different areas that Power and Water experience, both in our time and in the CLP’s time. It is a natural budgetary process that Power and Water goes through. That is the answer. I hope that answers your question.
Members interjecting.
Mr KNIGHT: Obviously, it does not. It is very clear that the CLP has been very tricky and cute about their time and, clearly, do not want to hear the answers.
INPEX Project Decision – Influence of Business Sector
Mr GUNNER to MINISTER for BUSINESS and EMPLOYMENT
The Territory business sector has proven its ability to service large-scale infrastructure projects such as the ConocoPhillips gas project. How much influence would this have had on the decision of INPEX joint venture partners to choose Darwin as the preferred onshore location for its project?
ANSWER
Madam Speaker, I thank the member for his important question. When a company like INPEX decides where to base an LNG plant, it takes many factors into consideration. One of them is the ability of the local industry and business sector to support the construction and operation of the LNG plant. INPEX representatives visited Darwin on many occasions and were clearly impressed with what they saw and what our local businesses can achieve – local business supported ConocoPhillips’ LNG construction, the Alcan G3 and many other major projects in the Territory.
INPEX invited Kevin Peters, General Manager of the Northern Territory Industry Capability Network, to go to Japan to make a presentation to senior management of INPEX about the local industry. Mr Peters made clear to them the benefits of having immediate access to contact points and capabilities of approaching the 3500 Territory businesses they have on their database. We have asked ICN to develop a local industry participation plan that will provide opportunities for local businesses to participate in the project during the pre-construction, construction and operation phases.
The services provided to the proposed LNG plant go beyond engineering and construction. They include specialist manufacturing; asset management; marine services; consumable supplies; maintenance; transport; training services; accommodation; and catering services. This is why we have invested $200 000 to provide the Northern Territory Industry Capability Network the opportunity to travel throughout the Territory and conduct seminars with different businesses to give them the opportunity to apply for these contacts.
We are working with INPEX and the Northern Territory Industry Capability Network to ensure that many jobs and business opportunities stay local where it is possible.
Power and Water Corporation - Cost of Backup Generators and Increases to Power Bills
Mr ELFERINK to MINISTER for ESSENTIAL SERVICES
It is my understanding that it is government which sets the power tariff in the Northern Territory, so I will repeat the question. Considering that it is government’s responsibility to set the power tariff in the Northern Territory, will power prices go up as a result of this crisis?
ANSWER
Madam Speaker, they will not go up because of this power crisis ...
Mr Elferink: Yes, they will.
Madam SPEAKER: Order! Minister, you have the call.
Mr KNIGHT: Madam Speaker, I am at a loss. They asked the question and I have given the answer.
Members interjecting.
Madam SPEAKER: Minister, please resume your seat. Honourable members, I once again remind you of Standing Order 51:
- No Member may converse aloud or make any noise or disturbance which in the opinion of the Speaker is designed to interrupt or has the effect of interrupting a Member speaking.
Minister, you have the call.
Mr KNIGHT: Thank you, Madam Speaker. This is an example of what the CLP was all about. This is what we …
Members interjecting.
Madam SPEAKER: Order! Member for Brennan, cease interjecting! Member for Greatorex, cease interjecting! Please pause. Member for Greatorex, please put that below the desk.
Mr MILLS: A point of order, Madam Speaker! I request that that graph be tabled.
Members interjecting.
Madam SPEAKER: Order! Please pause. There has been discussion about props and, as members would be aware, if a member is on their feet, and something is relevant, and it is a prop such as a chart or a newspaper, then that may be used. It is not to be used generally in the Chamber. Someone has called a question on that.
Minister, you have the call. You have been asked to table a document. Are you willing to table it?
Mr KNIGHT: Yes, I am, Madam Speaker, because all these figures appear in my ministerial statement that I provided this morning which was provided to the CLP last night. They have not even bothered to have a look at it. They have been playing around like school kids about this very serious matter.
Members interjecting.
Madam SPEAKER: Order!
Mr KNIGHT: Madam Speaker, from the very start of this situation we have taken it very seriously. We have been very open and honest about what has happened and what we are going to do. The CLP has been sneaking around, deceitful with the information, treating it as a joke, giggling like schoolchildren, playing little games over there. This is a very serious matter.
Members interjecting.
Madam SPEAKER: Order! Member for Braitling!
Mr KNIGHT: We have been trying to rebuild this organisation, this very important organisation, for the benefit of every Territorian. It does not happen overnight. When you run something into the ground it takes time to rebuild. It takes time to recruit. It takes time to secure generation for power. It takes time, and that is what we have done. We are well on our way. We had Stephen Blanch on the radio saying that we have done a great job investing the quantum of money …
Mr Chandler interjecting.
Madam SPEAKER: Order! Member for Brennan, cease interjecting!
Mr KNIGHT: Madam Speaker, we have taken a very serious approach to Power and Water, whereas the CLP - again, I talk about records. Our record is out there for everyone to look at. The figures speak for themselves. We have taken responsibility. The CLP needs to take responsibility for their 27 years in government, and the run down, and their target of 300 jobs slashed out of the organisation, with a prospect of selling it off to a private company. We are taking it very seriously. We will rebuild Power and Water from the mess that we inherited.
INPEX Project –
Environmental Assessment Process
Environmental Assessment Process
Ms WALKER to MINISTER for NATURAL RESOURCES, ENVIRONMENT and HERITAGE
The INPEX LNG project will need to meet strong environmental standards. What is the current status of the environmental assessment process for this important development?
ANSWER
Madam Speaker, I thank the member for Nhulunbuy for her question. The Chief Minister has already indicated in an earlier statement that this is about ensuring that we have development in the Northern Territory, and also protecting the environment.
The Henderson government believes that it is possible to have development and protect our environment. This is where, as Territorians, we ensure that we encourage development for the future generation of Territorians, and, at the same time, look after the environment so that we have healthy development going on with protection of the environment.
Earlier this year, my predecessor directed INPEX to prepare an environmental impact assessment, which is the highest level of environmental assessment. In this case, it will involve both the Northern Territory and Australian governments. My department and their federal counterparts are coordinating efforts to ensure a single EIS process is followed to satisfy the laws of both governments. Guidelines for the EIS have been prepared following a period of public comment.
INPEX will now prepare a draft EIS addressing the requirement of the guidelines. The draft EIS will then be made available for public comment for a period of eight weeks, twice that required under the legislation. INPEX will respond to the comments received and both governments will then assess the EIS. This will provide a very thorough examination of all of the environmental issues prior to both governments considering approval.
Department of Planning and Infrastructure – Chief Executive Officer
Mr WOOD to MINISTER for PLANNING and LANDS
Mr David Clements, the Inspector of Municipal Administration, on behalf of the Victorian government, investigated certain matters relating to the Ballarat City Council. Mr Clements found that there may have been breaches by Mr Hancock, who is now your CEO, of the Local Government Act of Victoria in relation to three cases of non-advertising of consultancies over $100 000, and the non-registration of one of those consultants to a senior officer position in the council.
As Mr Hancock is the CEO of your department, and as the senior official officer mentioned in the report is also now employed by your department, will you not stand down the CEO until the CEO is able to show that he did not breach the Local Government Act of Victoria?
ANSWER
Madam Speaker, I thank the member for Nelson for his genuine interest in this matter and his question. It is important that I outline the facts behind this issue.
A report, as you have heard, was tabled in the Victorian parliament earlier this month relating to issues of conduct of two councillors of the Ballarat City Council. As reported, the CEO of Ballarat City Council at the time was Richard Hancock, who is currently the CEO of my Department of Planning and Infrastructure.
The report makes several mentions of Richard Hancock, and it points out that he was not interviewed in relation to any of the matters within the report. It is suggested in the report that Richard Hancock was living and working in the Middle East, which was clearly incorrect. When I was made aware of this report, I immediately referred it to the Chief Executive Officer of the Department of the Chief Minister, and I read the report.
The report raises an issue in relation to the method of employment of Mr Mike Chiodo at the Ballarat City Council. Mr Chiodo is now employed on a one year contract, which will shortly expire, as Manager of the Construction Division with the Department of Planning and Infrastructure in the Territory. Mr Chiodo was employed following the departure of the previous Construction Division Manager.
I was made aware at the time by Richard Hancock that he had worked previously with Mr Chiodo. He wanted to bring Mr Chiodo on immediately as a consultant as there were several very important construction projects that needed immediate addressing, none the least was the construction of the Palmerston school project.
I have now been advised that there were some anomalies in the process for selecting Mr Chiodo for that contract appointment. I was not made aware of this at the time, but I have been advised that, at the time, the issue was appropriately dealt with and resolved by the Commissioner for Public Employment. The position of a Construction Manager, which is on a one year contract, will soon be advertised for permanent filling.
Richard Hancock has been overseas on a skilled worker recruitment drive. He was not aware that the investigation was being conducted. Last night, he met with the Chief Executive of the Department of the Chief Minister and the Commissioner for Public Employment. I have been advised that there is no evidence of sufficient gravity that would substantiate a decision to ask Mr Hancock to stand down. Mr Hancock is not in breach of the Public Sector Employment and Management Act of the Territory.
The Victorian investigators concluded that while there may have been a breach of parts of their local governance laws, they did not recommend any action, and noted that the breaches, if proven, do not carry a penalty, that is, they would be at the lower end of the scale. It is very public knowledge that Mr Hancock is in Darwin and not the Middle East. Investigators did not view him as a central figure to their investigations. Mr Hancock has agreed to formally respond to the findings of the report that relate to him and report to the Chief Executive of the Department of the Chief Minister.
I will continue to be guided on this issue by the Chief Executive of the Department of the Chief Minister, who is also working with the Commissioner for Public Employment. I believe that the CEO of the Department of the Chief Minister requires due process and natural justice to occur.
I have received advice from the CEO of the Department of the Chief Minister that this is not a matter sufficient for stand down. Appropriately, Mr Hancock will continue in his role as the CEO of the Department of Planning and Infrastructure.
INPEX Project – Demand on Essential Services
Mr McCARTHY to MINISTER for ESSENTIAL SERVICES
The construction phase of the INPEX project will create approximately 2000 jobs and new demands on our power, water and sewerage services. Can the minister please update the House on how these requirements can be met?
ANSWER
Madam Speaker, I thank the member for Barkly for his good question. 26 September was an historic day in the Territory with the announcement by INPEX of the $12bn gas plant in Darwin. I pay tribute to the Chief Minister for his tenacity in securing this project for the Territory. It really was not on the radar of anyone else; it was solely the Chief Minister, and the previous Chief Minister, who went after this project, and we got it.
The significance of this project is that it will bring jobs to the Territory; it will grow our economy. It will, hopefully, protect us from any sort of global turmoil that happens in our time. Much work went into putting the Territory’s case to secure the INPEX project, and that included work done by the Power and Water Corporation.
INPEX will require power, water and sewerage services from the Power and Water Corporation at its construction site and any construction camps. Once in operation, the INPEX plant will most likely be self-sufficient in terms of its power needs. The Power and Water Corporation will provide water and sewerage services on a commercial basis.
Power and Water and INPEX will soon establish a coordinating committee, and are exchanging detailed technical information to allow Power and Water to design suitable facilities for INPEX’s needs. I am confident Power and Water can provide the necessary infrastructure in line with INPEX’s schedule.
Further, the new $126m Weddell power station is a vital link in meeting the future energy needs of Darwin and Palmerston, and this includes the INPEX project. As the Territory’s largest electricity generation project in more than 20 years, it has the potential to provide power for 120 000 new homes - that is an extra 30% capacity to Darwin and Palmerston’s power supplies. This outstrips the current forecast of peak demand by 3%.
This is just one project the government has in its $1bn Power and Water capital investment project, and it will meet the future demands of the Territory. We are planning and building for the future.
Power and Water Corporation Power
Crisis – Responsibility of Minister
Crisis – Responsibility of Minister
Mr ELFERINK to MINISTER for ESSENTIAL SERVICES
Today, in the House, the Minister for Essential Services said: ‘I accept full responsibility’ for the power crisis. Today, we heard the minister stand up in this House and do nothing of the sort, so clearly he was lying this morning …
Ms LAWRIE: A point of order, Madam Speaker! The member opposite well knows that he can only make that accusation by way of substantive motion. If you want to censure, censure. You are scaremongering. You have been scaremongering the whole way through questions …
Members interjecting.
Madam SPEAKER: Order! Leader of Government Business, resume your seat.
SUSPENSION OF STANDING ORDERS
Proposed Censure of Government
Proposed Censure of Government
Mr ELFERINK: Madam Speaker, I move that so much of standing orders be suspended as would prevent this House from censuring the government for its monumental failure to supply essential services …
Members interjecting.
Madam SPEAKER: Order, order!
Ms LAWRIE: Madam Speaker, the government accepts the censure.
Madam SPEAKER: Thank you. Please resume your seat. Member for Port Darwin, we will wait for the cameras to be removed as it is the end of Question Time.
Last updated: 09 Aug 2016