Mr ELFERINK - 2001-05-30
In spite of the fact that the member for Stuart had the regional highlights of the budget sitting in front of him last night, he trotted into this Chamber and whinged about the Tanami Road which is in his electorate. It is a road that has had problems in the past. For the edification of the member for Stuart, and the edification of Territorians generally, and to offset the mistruths that he mouthed last night, could you outline what has been done for the Tanami Road in the past as well as what has been set aside for the future?
ANSWER
Mr Speaker, I thank the honourable member for his question and, indeed, I could edify the member for Stuart but I can’t make him any more erudite. Over the last five years, this government has made a real and conscious effort to maintain and upgrade the Tanami Road ...
Members interjecting.
Mr SPEAKER: Order, order!
Mr PALMER: In the last five years we have spent $10.4m on that road which supports a number of communities and a number of mines. This year so far, we have spent $1.45m. Last year in the budget we allocated $1m for capital works on the road. That is apart from another million on R and M to re-form and grade various sections of that road. Over the wet season, in the month of March alone, over 300 mm of rain fell on the road with an average of 40 mm for that particular month. It suffered from extreme weather and adverse circumstances. It is a difficult road not only to construct but to maintain. Even the privately commissioned independent report from Maunsell McIntyre acknowledges that there are vast sections of that road where there is no access to water. If you want to re-form and gravel the road, you must compact the road bed and in doing so you need access to water. There are parts of that road with access to water but you would need to cart it in excess of 100 km. It is not a cheap or easy job.
However, we do recognisethe strategic importance of the road and the importance of that road to Alice Springs and we have expended, as I said, in the last six years $11.3m on that road. We have contacted the mine seeking that they would contribute to the construction of a sealed, all-weather road. However, to date, we have been unsuccessful and that is probably for a number of reasons. Just recently, I understand, the contract price to one of the mines fell from about 14 a litre for fuel to 7 and there is absolutely no incentive for the mines to contribute to the construction of the road when they are able to get the contract price at half its previous rate. There are many in the transport industry who cannot understand how anybody can survive quoting such rates, well less than bitumen road rates. As I said, we have sought the cooperation of those mines but whilst there is no incentive for them to make a financial contribution, it is very difficult.
We are subject to criticism that it is a Territory road and we should construct it to a standard that would suit the mine. The member for Arafura would know that in his very electorate with that very large timber project going on at Melville Island, we are discussing with the private enterprise proponents of that project their cost of constructing the necessary infrastructure. Something between $20m to $30m-worth of roads and port infrastructure will be required to support that project. The discussions so far have been about their complete 100% contribution to that and how we may assist them in terms of organising BOOT schemes to do that. There is an expectation and a realisation in private enterprise Australia-wide that if you need infrastructure to support projects such as forestry ventures and mines etc, there is an expectation that you would contribute to that infrastructure.
In the case of the Tanami Road, we would expect the mines to make such a contribution. However, as I said, it is difficult in circumstances where you have people quoting what is considered industry-wide as far less than the get-square cost of supplying fuel to those mines. When they are quoting that, it is difficult to encourage the mines to make any contribution. I can understand where they are coming from. But I will iterate that we have spent $10.4m in the last five years on that road. In terms of the number of Territorians it services, it is far in excess of what we have spent on other Territory roads. We are not begrudging them that and we will continue to spend the money. We are spending $250 000 this year on sealing four causeways. We will spend in excess of another $1m on the ongoing repairs and maintenance of that road. As I said, it is difficult but we are committed to that road.
ANSWER
Mr Speaker, I thank the honourable member for his question and, indeed, I could edify the member for Stuart but I can’t make him any more erudite. Over the last five years, this government has made a real and conscious effort to maintain and upgrade the Tanami Road ...
Members interjecting.
Mr SPEAKER: Order, order!
Mr PALMER: In the last five years we have spent $10.4m on that road which supports a number of communities and a number of mines. This year so far, we have spent $1.45m. Last year in the budget we allocated $1m for capital works on the road. That is apart from another million on R and M to re-form and grade various sections of that road. Over the wet season, in the month of March alone, over 300 mm of rain fell on the road with an average of 40 mm for that particular month. It suffered from extreme weather and adverse circumstances. It is a difficult road not only to construct but to maintain. Even the privately commissioned independent report from Maunsell McIntyre acknowledges that there are vast sections of that road where there is no access to water. If you want to re-form and gravel the road, you must compact the road bed and in doing so you need access to water. There are parts of that road with access to water but you would need to cart it in excess of 100 km. It is not a cheap or easy job.
However, we do recognisethe strategic importance of the road and the importance of that road to Alice Springs and we have expended, as I said, in the last six years $11.3m on that road. We have contacted the mine seeking that they would contribute to the construction of a sealed, all-weather road. However, to date, we have been unsuccessful and that is probably for a number of reasons. Just recently, I understand, the contract price to one of the mines fell from about 14 a litre for fuel to 7 and there is absolutely no incentive for the mines to contribute to the construction of the road when they are able to get the contract price at half its previous rate. There are many in the transport industry who cannot understand how anybody can survive quoting such rates, well less than bitumen road rates. As I said, we have sought the cooperation of those mines but whilst there is no incentive for them to make a financial contribution, it is very difficult.
We are subject to criticism that it is a Territory road and we should construct it to a standard that would suit the mine. The member for Arafura would know that in his very electorate with that very large timber project going on at Melville Island, we are discussing with the private enterprise proponents of that project their cost of constructing the necessary infrastructure. Something between $20m to $30m-worth of roads and port infrastructure will be required to support that project. The discussions so far have been about their complete 100% contribution to that and how we may assist them in terms of organising BOOT schemes to do that. There is an expectation and a realisation in private enterprise Australia-wide that if you need infrastructure to support projects such as forestry ventures and mines etc, there is an expectation that you would contribute to that infrastructure.
In the case of the Tanami Road, we would expect the mines to make such a contribution. However, as I said, it is difficult in circumstances where you have people quoting what is considered industry-wide as far less than the get-square cost of supplying fuel to those mines. When they are quoting that, it is difficult to encourage the mines to make any contribution. I can understand where they are coming from. But I will iterate that we have spent $10.4m in the last five years on that road. In terms of the number of Territorians it services, it is far in excess of what we have spent on other Territory roads. We are not begrudging them that and we will continue to spend the money. We are spending $250 000 this year on sealing four causeways. We will spend in excess of another $1m on the ongoing repairs and maintenance of that road. As I said, it is difficult but we are committed to that road.
Last updated: 09 Aug 2016