Mr LUGG - 1998-10-06
The oil and gas industry off the NT coast is booming with projects worth billions of dollars in the pipeline. Can the Minister tell us what business development, with regard to support industry, is taking place in response to the offshore oil and gas industry boom?
ANSWER
Madam Speaker, what is occurring offshore is very exciting and how that translates to jobs for Territorians is a very important part of the government’s direction.
Darwin industry is certainly continuing to obtain considerable benefit from offshore oil and gas activity. We know there are 160 exploration wells planned, at a cost of more than $1.6 billion, over the 1998-2003 period and there is a great deal of activity.
A number of new companies, I am very pleased to say, have opened in recent months specifically just to service this particular industry. It represents a capital injection into our economy of more than $25m. It has also created a number of new jobs in businesses that I recently visited and there is certainly the potential for many, many more.
I recently had the pleasure of opening the new Baker Hughes facility at the Trade Development Zone. Baker Hughes is one of the largest specialist oil and gas service companies in the world. It provides drilling fluids and down hole equipment. The operation itself employs 20 people and represents an investment of over $20m in facility development and assets. This particular base is their major base in Australia and it represents an investment in Darwin for the long haul. The interesting thing is that the company is employing local people and they are sending these local staff to Aberdeen for training. They are certainly contributing to the skills and development of the local workforce, and I congratulate them for that.
I also recently visited Acer Unirig. They are a newly established company and they are a merger of the international Acer group with a local firm. They currently have 6 employees but they have an investment, to this stage, of $12m. The local company Oilnet, has their supply base and their logistic support operation at Berrimah which continues to expand. Oilnet now employs 13 people and it provides a similar number of indirect jobs. Oil Net anticipate another 15 people into their workforce in the next 12 months.
On the fabrication side, there are a number of companies which have expressed interest in relocating to Darwin or establishing new operations in Darwin. The Perth based company, Monadelphous, have done that. They have come here, they are doing oil, gas and mining work. They have a staff of 15 at Berrimah, plus project staff who are now situated at Nabalco.
Mr AH KIT: Point of order, Madam Speaker! While it is very good that the member for Sanderson is making more or less a ministerial statement, we are in question time. The question has been asked and I put it to you, Madam Speaker, that the member for Sanderson be very short in his response so that we can get on with the issue of the day which is statehood.
Madam SPEAKER: Minister, yes continue your answer, thank you.
Mr MANZIE: Madam Speaker, I just find that appalling. I think that jobs for young Territorians is one of the most important issues that face us and to have the opposition try to shut down information to Territorians about what is going on is typical of their attitude. They do not care about anything positive. They do not care about any directions which may create employment and their attitude to Jabiluka is typical of their whole attitude to developing jobs for young Territorians. They do not understand what creates jobs, and they do not like anyone talking about it. In particular, they hate to see that this government has been more successful than any other government in Australia about creating jobs.
Madam SPEAKER: Minister, would you please answer the question.
Mr MANZIE: The member for Arnhem is typical, he leads their attitude towards job creation. I do not mind standing up here and telling Territorians how successful the government has been in creating an environment to create jobs as a result of the oil and the gas industry. If the member for Wanguri also does not want the community to understand …
Mr Bailey: I do.
Mr MANZIE: … well, be that on his head, because I am not going to stand here and be quietened by the opposition and I will continue.
A number of local industries have expanded their businesses and they have formed alliances with interstate and overseas companies to better position themselves with regards to their oil and gas contracts. An example is another company – Universal Engineering – that I had the pleasure of launching October Business Month from last week. This is local industry creating jobs, catching on to the oil and gas boom and the benefits it can bring their companies. The government is actively involved in ensuring that local industry gets those sort of benefits. I also have say that I am vigorously seeking a greater operational presence in Darwin by oil and gas companies and the offshore contract operators. Presently, many of the offshore contract operations are based in Perth and there are a significant number of jobs at stake here. It is a question of convincing the companies’ managements of the benefits of basing staff in Darwin versus the fly-in fly-out operation from Perth.
Now, I know the opposition do not care about that and they do not want to hear about that sort of thing …
Members interjecting.
Ms MARTIN: Madam Speaker, point of order! You have given directions under your Speakership that answers should be relatively brief …
Madam SPEAKER: Yes.
Ms MARTIN: The minister has gone beyond …
Madam SPEAKER: Minister, I do think your answer has been going on quite long. I would like you to wrap your answer up quickly.
Mr MANZIE: Madam Speaker, I probably would have been finished about a minute ago if the opposition had not tried to prevent me telling the community about what is occurring in relation to job growth. I think if they played their part in this parliament, acting with good manners and stopping their process of interrupting ministers, these questions would have been answered a long time ago.
One of the biggest problems facing us is trying to convince companies to relocate to Darwin. Middle level management, those human resource managers for some of these companies based in Perth, have been heard to say that they cannot get skilled labour here. It has been pointed out that we have no trouble getting skilled medical people for our hospitals. We do not have to fly them in and out. We can get skilled professors and lecturers for our university without having to fly them in and out. A little bit of activity on their behalf would see that they can get very good local skills in Darwin. I think many of them are comfortable down in Perth. When their shareholders find out the costs they are imposing on their companies by continuing to live in Perth, things will change. We will make sure that we get that message across to the senior management of those companies.
The Territory is certainly best placed to service this growing industry, and I have to congratulate Territory businesses for their foresight in positioning themselves to service the oil and gas sector. This government will continue with its commitment to ensure that we maximise the number of jobs provided to Territorians as a result of the oil and gas industry.
ANSWER
Madam Speaker, what is occurring offshore is very exciting and how that translates to jobs for Territorians is a very important part of the government’s direction.
Darwin industry is certainly continuing to obtain considerable benefit from offshore oil and gas activity. We know there are 160 exploration wells planned, at a cost of more than $1.6 billion, over the 1998-2003 period and there is a great deal of activity.
A number of new companies, I am very pleased to say, have opened in recent months specifically just to service this particular industry. It represents a capital injection into our economy of more than $25m. It has also created a number of new jobs in businesses that I recently visited and there is certainly the potential for many, many more.
I recently had the pleasure of opening the new Baker Hughes facility at the Trade Development Zone. Baker Hughes is one of the largest specialist oil and gas service companies in the world. It provides drilling fluids and down hole equipment. The operation itself employs 20 people and represents an investment of over $20m in facility development and assets. This particular base is their major base in Australia and it represents an investment in Darwin for the long haul. The interesting thing is that the company is employing local people and they are sending these local staff to Aberdeen for training. They are certainly contributing to the skills and development of the local workforce, and I congratulate them for that.
I also recently visited Acer Unirig. They are a newly established company and they are a merger of the international Acer group with a local firm. They currently have 6 employees but they have an investment, to this stage, of $12m. The local company Oilnet, has their supply base and their logistic support operation at Berrimah which continues to expand. Oilnet now employs 13 people and it provides a similar number of indirect jobs. Oil Net anticipate another 15 people into their workforce in the next 12 months.
On the fabrication side, there are a number of companies which have expressed interest in relocating to Darwin or establishing new operations in Darwin. The Perth based company, Monadelphous, have done that. They have come here, they are doing oil, gas and mining work. They have a staff of 15 at Berrimah, plus project staff who are now situated at Nabalco.
Mr AH KIT: Point of order, Madam Speaker! While it is very good that the member for Sanderson is making more or less a ministerial statement, we are in question time. The question has been asked and I put it to you, Madam Speaker, that the member for Sanderson be very short in his response so that we can get on with the issue of the day which is statehood.
Madam SPEAKER: Minister, yes continue your answer, thank you.
Mr MANZIE: Madam Speaker, I just find that appalling. I think that jobs for young Territorians is one of the most important issues that face us and to have the opposition try to shut down information to Territorians about what is going on is typical of their attitude. They do not care about anything positive. They do not care about any directions which may create employment and their attitude to Jabiluka is typical of their whole attitude to developing jobs for young Territorians. They do not understand what creates jobs, and they do not like anyone talking about it. In particular, they hate to see that this government has been more successful than any other government in Australia about creating jobs.
Madam SPEAKER: Minister, would you please answer the question.
Mr MANZIE: The member for Arnhem is typical, he leads their attitude towards job creation. I do not mind standing up here and telling Territorians how successful the government has been in creating an environment to create jobs as a result of the oil and the gas industry. If the member for Wanguri also does not want the community to understand …
Mr Bailey: I do.
Mr MANZIE: … well, be that on his head, because I am not going to stand here and be quietened by the opposition and I will continue.
A number of local industries have expanded their businesses and they have formed alliances with interstate and overseas companies to better position themselves with regards to their oil and gas contracts. An example is another company – Universal Engineering – that I had the pleasure of launching October Business Month from last week. This is local industry creating jobs, catching on to the oil and gas boom and the benefits it can bring their companies. The government is actively involved in ensuring that local industry gets those sort of benefits. I also have say that I am vigorously seeking a greater operational presence in Darwin by oil and gas companies and the offshore contract operators. Presently, many of the offshore contract operations are based in Perth and there are a significant number of jobs at stake here. It is a question of convincing the companies’ managements of the benefits of basing staff in Darwin versus the fly-in fly-out operation from Perth.
Now, I know the opposition do not care about that and they do not want to hear about that sort of thing …
Members interjecting.
Ms MARTIN: Madam Speaker, point of order! You have given directions under your Speakership that answers should be relatively brief …
Madam SPEAKER: Yes.
Ms MARTIN: The minister has gone beyond …
Madam SPEAKER: Minister, I do think your answer has been going on quite long. I would like you to wrap your answer up quickly.
Mr MANZIE: Madam Speaker, I probably would have been finished about a minute ago if the opposition had not tried to prevent me telling the community about what is occurring in relation to job growth. I think if they played their part in this parliament, acting with good manners and stopping their process of interrupting ministers, these questions would have been answered a long time ago.
One of the biggest problems facing us is trying to convince companies to relocate to Darwin. Middle level management, those human resource managers for some of these companies based in Perth, have been heard to say that they cannot get skilled labour here. It has been pointed out that we have no trouble getting skilled medical people for our hospitals. We do not have to fly them in and out. We can get skilled professors and lecturers for our university without having to fly them in and out. A little bit of activity on their behalf would see that they can get very good local skills in Darwin. I think many of them are comfortable down in Perth. When their shareholders find out the costs they are imposing on their companies by continuing to live in Perth, things will change. We will make sure that we get that message across to the senior management of those companies.
The Territory is certainly best placed to service this growing industry, and I have to congratulate Territory businesses for their foresight in positioning themselves to service the oil and gas sector. This government will continue with its commitment to ensure that we maximise the number of jobs provided to Territorians as a result of the oil and gas industry.
Last updated: 09 Aug 2016