Ms WALKER - 2013-11-26
People in Nhulunbuy – workers, families, businesses and traditional owners – are in shock today. Rio has advised the future of the Gove operations is under review and they will not be proceeding with converting the refinery to gas. You need to accept responsibility for this crisis which you created when you made the decision in July to renege on the 300 PJ of gas offered and secured by Terry Mills. Will you commit to being in Nhulunbuy on Friday to release the social and economic impact analysis to inform residents of what their future may hold?
ANSWER
Madam Speaker, I thank the member for Nhulunbuy for the question, I know she has an interest in the future plans for Rio Tinto in the community in regard to the refinery.
In regard to the question about gas, in particular, the Northern Territory government has offered up all gas as requested by Rio Tinto. That has come through two different equations: what we have offered publicly and the guarantee that Ian Macfarlane, the federal Resources minister, has offered. We have been in conversation with Rio Tinto, as you could imagine, many times over this year about what we can do to try to secure the long-term operations of the refinery and ensure the bauxite extraction continues to provide an economic base for the region and the township.
There are significant considerations that Rio Tinto is putting in place about the operations of the refinery into the future. We are well aware of the loss-making ventures in the refinery which have occurred over the last five years since the acquisition of the refinery in 2007-08 and the amount of the capital injection which has gone into that refinery. We have been communicating in a range of …
Ms WALKER: A point of order, Madam Speaker! It is to do with relevance. The question was not about gas. We know Rio Tinto is not proceeding with gas. My question was very specific: will he commit to being in Nhulunbuy on Friday to release the social economic impact analysis? We do not want a newsletter or a radio interview, we want to see the Chief Minister front up to the community and have some answers about what the future holds.
Madam SPEAKER: Thank you, member for Nhulunbuy, please be seated. Chief Minister, you have the call. You have three minutes to answer the question.
Mr GILES: Thank you very much, Madam Speaker. As I said, we have been communicating with Rio Tinto and PacAl over the year about a range of things. On 13 November, I wrote to the CEO of Rio Tinto, Mr Sam Walsh, outlining the current gas and pipeline offer, illustrating that we have provided the gas and the federal government has agreed to underwrite the pipeline. There has been much work done to ensure there is a pipeline easement that can continue. That was passed through with the Northern Land Council quite well, and I thank Rio for its their efforts in that regard ...
Ms FYLES: A point of order, Madam Speaker! Standing Order 113: relevance. It was a very direct question: will the Chief Minister go to Nhulunbuy on Friday and meet with local residents who are devastated?
Madam SPEAKER: There is no point of order.
Mr GILES: Thanks, Madam Speaker. I received a response to that letter on 19 November, which I will table.
We have plans to go to Nhulunbuy on Friday already – thank you very much for the question – so we will be able to speak with some of the stakeholders and the community about the position Rio is in at the moment. Rio advised Cabinet yesterday …
Ms WALKER: A point of order, Madam Speaker! Will the Chief Minister confirm that he is taking some of his key colleagues, the Mines minister …
Madam SPEAKER: That is not a point of order. Sit down, member for Nhulunbuy.
Mr GILES: As I said, we will be going there on Friday and having a chat with the stakeholders. We have had the opportunity of writing to many of those stakeholders and letting them know the position Rio is in. Rio gave Cabinet a briefing yesterday, telling us there will be a decision made by the board soon. We hope the refinery continues to remain in operation, but these decisions will be made by the board at a future date.
ANSWER
Madam Speaker, I thank the member for Nhulunbuy for the question, I know she has an interest in the future plans for Rio Tinto in the community in regard to the refinery.
In regard to the question about gas, in particular, the Northern Territory government has offered up all gas as requested by Rio Tinto. That has come through two different equations: what we have offered publicly and the guarantee that Ian Macfarlane, the federal Resources minister, has offered. We have been in conversation with Rio Tinto, as you could imagine, many times over this year about what we can do to try to secure the long-term operations of the refinery and ensure the bauxite extraction continues to provide an economic base for the region and the township.
There are significant considerations that Rio Tinto is putting in place about the operations of the refinery into the future. We are well aware of the loss-making ventures in the refinery which have occurred over the last five years since the acquisition of the refinery in 2007-08 and the amount of the capital injection which has gone into that refinery. We have been communicating in a range of …
Ms WALKER: A point of order, Madam Speaker! It is to do with relevance. The question was not about gas. We know Rio Tinto is not proceeding with gas. My question was very specific: will he commit to being in Nhulunbuy on Friday to release the social economic impact analysis? We do not want a newsletter or a radio interview, we want to see the Chief Minister front up to the community and have some answers about what the future holds.
Madam SPEAKER: Thank you, member for Nhulunbuy, please be seated. Chief Minister, you have the call. You have three minutes to answer the question.
Mr GILES: Thank you very much, Madam Speaker. As I said, we have been communicating with Rio Tinto and PacAl over the year about a range of things. On 13 November, I wrote to the CEO of Rio Tinto, Mr Sam Walsh, outlining the current gas and pipeline offer, illustrating that we have provided the gas and the federal government has agreed to underwrite the pipeline. There has been much work done to ensure there is a pipeline easement that can continue. That was passed through with the Northern Land Council quite well, and I thank Rio for its their efforts in that regard ...
Ms FYLES: A point of order, Madam Speaker! Standing Order 113: relevance. It was a very direct question: will the Chief Minister go to Nhulunbuy on Friday and meet with local residents who are devastated?
Madam SPEAKER: There is no point of order.
Mr GILES: Thanks, Madam Speaker. I received a response to that letter on 19 November, which I will table.
We have plans to go to Nhulunbuy on Friday already – thank you very much for the question – so we will be able to speak with some of the stakeholders and the community about the position Rio is in at the moment. Rio advised Cabinet yesterday …
Ms WALKER: A point of order, Madam Speaker! Will the Chief Minister confirm that he is taking some of his key colleagues, the Mines minister …
Madam SPEAKER: That is not a point of order. Sit down, member for Nhulunbuy.
Mr GILES: As I said, we will be going there on Friday and having a chat with the stakeholders. We have had the opportunity of writing to many of those stakeholders and letting them know the position Rio is in. Rio gave Cabinet a briefing yesterday, telling us there will be a decision made by the board soon. We hope the refinery continues to remain in operation, but these decisions will be made by the board at a future date.
Last updated: 09 Aug 2016