Dr LIM - 1997-12-02
Those of us who follow the progress of the Adelaide to Alice Springs to Darwin railway project closely know that the official expressions of interest phase closed yesterday evening. What level of interest is there in financing, building, owning and operating the railway? What happens next?
Mr Toyne: What about the impact on Alice Springs?
ANSWER
Madam Speaker, I will answer the interjection first. It would initially have a negative impact on Alice Springs. We have done some research on this in respect of jobs and it is probably a negative of $15m per annum. About 112 jobs would be lost. However, if the member for Stuart thinks that the railhead will not move 1 mm further north, I suggest he is not living in the real world. I have suggested that to him already over a number of months. He will have to get it through his head.
The question is a very timely one indeed, given that expressions of interest closed yesterday at 4 pm in the Northern Territory. It would have been very embarrassing to the governments of the Northern Territory, South Australia and indeed the federal government - and the Labor oppositions in both South Australia and the Northern Territory - if no expressions of interest had been received, or if proposals had been received for projects that would not have been capable of building, owning, operating and transferring the line back. Fortunately, I am able to advise the House that we have received more than 30 submissions to build the railway. These have come from 60 companies, both national and international. We are very happy with that result. The AustralAsia Railway Corporation has now to go through the arduous task of selecting a short list from those 30. That will probably come down to 5 or less, to be announced in January after consideration by the Northern Territory and South Australian governments. The short-listed companies will be given until June of next year to put in detailed submissions.
What happens next in relation to the railway corridor is an important issue for us. We have legal advice that this project cannot proceed past that January deadline until the Northern Territory government is in a position to provide security of the railway corridor. In other words, we could not expect consortia to proceed, even though consideration has been given for the underwriting of the cost of those submissions, if we knew at the time that we had no hope of providing the consortia with the railway corridor.
This is the anniversary of the opening of my discussions with the land councils. Honourable members will be aware that I have been congratulated on my approach to the land councils and the way I have negotiated during these 12 months. However, I must report to the parliament that it has all been for nought. We do not have an agreement with the land councils regarding access across the remaining 30% of the corridor that is across Aboriginal land. We are certainly no closer to resolution regarding native title.
The remaining land that the corridor is to cross has been valued by the Valuer-General at less than $0.5m. This valuation is on the same basis that we paid compensation for the other 70% of the corridor. The land councils now want an additional 3 months because they dispute our methodology. This is the same methodology that has been used for all other land valuations. The compensation package talked about now ranges from $3m to $10m. Of course, we would have to pay compensation for native title in certain areas. There is also the port issue. A number of other issues were raised by the land councils, including the Palmerston Post Office, with regard to compensation.
Yesterday and the day before, officers from the Department of the Chief Minister have been holding discussions with the Department of the Prime Minister and Cabinet. It is becoming very obvious that we will need special legislation to ensure that this project proceeds. I do not believe that we can negotiate it, although we will certainly keep trying. We have established our bona fides and have negotiated in good faith over that 12-month period but, unfortunately, I have to report to honourable members that we are having extreme difficulty in coming to a successful conclusion. I do not think we will be able to negotiate access across Aboriginal land under the current terms and conditions unless there is a very big change in attitude by the Central Land Council and the Northern Land Council. I shall keep members informed of progress. I have
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spoken to the Leader of the Opposition and to Senator Bob Collins, and I intend to speak to both the federal and South Australian Labor Party.
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Mr Toyne: What about the impact on Alice Springs?
ANSWER
Madam Speaker, I will answer the interjection first. It would initially have a negative impact on Alice Springs. We have done some research on this in respect of jobs and it is probably a negative of $15m per annum. About 112 jobs would be lost. However, if the member for Stuart thinks that the railhead will not move 1 mm further north, I suggest he is not living in the real world. I have suggested that to him already over a number of months. He will have to get it through his head.
The question is a very timely one indeed, given that expressions of interest closed yesterday at 4 pm in the Northern Territory. It would have been very embarrassing to the governments of the Northern Territory, South Australia and indeed the federal government - and the Labor oppositions in both South Australia and the Northern Territory - if no expressions of interest had been received, or if proposals had been received for projects that would not have been capable of building, owning, operating and transferring the line back. Fortunately, I am able to advise the House that we have received more than 30 submissions to build the railway. These have come from 60 companies, both national and international. We are very happy with that result. The AustralAsia Railway Corporation has now to go through the arduous task of selecting a short list from those 30. That will probably come down to 5 or less, to be announced in January after consideration by the Northern Territory and South Australian governments. The short-listed companies will be given until June of next year to put in detailed submissions.
What happens next in relation to the railway corridor is an important issue for us. We have legal advice that this project cannot proceed past that January deadline until the Northern Territory government is in a position to provide security of the railway corridor. In other words, we could not expect consortia to proceed, even though consideration has been given for the underwriting of the cost of those submissions, if we knew at the time that we had no hope of providing the consortia with the railway corridor.
This is the anniversary of the opening of my discussions with the land councils. Honourable members will be aware that I have been congratulated on my approach to the land councils and the way I have negotiated during these 12 months. However, I must report to the parliament that it has all been for nought. We do not have an agreement with the land councils regarding access across the remaining 30% of the corridor that is across Aboriginal land. We are certainly no closer to resolution regarding native title.
The remaining land that the corridor is to cross has been valued by the Valuer-General at less than $0.5m. This valuation is on the same basis that we paid compensation for the other 70% of the corridor. The land councils now want an additional 3 months because they dispute our methodology. This is the same methodology that has been used for all other land valuations. The compensation package talked about now ranges from $3m to $10m. Of course, we would have to pay compensation for native title in certain areas. There is also the port issue. A number of other issues were raised by the land councils, including the Palmerston Post Office, with regard to compensation.
Yesterday and the day before, officers from the Department of the Chief Minister have been holding discussions with the Department of the Prime Minister and Cabinet. It is becoming very obvious that we will need special legislation to ensure that this project proceeds. I do not believe that we can negotiate it, although we will certainly keep trying. We have established our bona fides and have negotiated in good faith over that 12-month period but, unfortunately, I have to report to honourable members that we are having extreme difficulty in coming to a successful conclusion. I do not think we will be able to negotiate access across Aboriginal land under the current terms and conditions unless there is a very big change in attitude by the Central Land Council and the Northern Land Council. I shall keep members informed of progress. I have
Page 53
spoken to the Leader of the Opposition and to Senator Bob Collins, and I intend to speak to both the federal and South Australian Labor Party.
Page 54
Last updated: 09 Aug 2016