Ms FINOCCHIARO - 2013-11-26
Could you please update the Assembly on the Northern Territory government’s efforts to secure the future of the Gove alumina refinery?
ANSWER
Madam Speaker, I thank the member for Drysdale for the question. The member for Drysdale, like everyone on this side of the Chamber, is very concerned about the future economic conditions for the region in East Arnhem Land. Over this year and prior to that, we have been working to ensure the refinery can continue operating. We had a request for gas late last year, as the former Labor government had a request for gas which they did not fulfil and did not guarantee as much as we did. We have also offered the opportunity of being able to utilise coal — whether or not the refinery could operate better on a cheaper fuel supply of coal.
There is now a number of solutions on board in terms of gas. All the gas that has been requested has been offered up by the Northern Territory government, the federal government and private suppliers who are keen to provide gas solutions.
Reports have been referred to today by the member for Nhulunbuy that Rio is not looking at going towards a gas solution. Rio makes its decisions based on commercial terms, as you can understand. We received a briefing yesterday in Cabinet which informed us of Rio’s impending decision by the board about the future of the refinery for the Nhulunbuy region. We do not know when that board meeting will be. We presume it will be very soon, possibly this week, and that will put in place a decision which will determine whether the refinery will continue in operation or not.
In government we have been working very hard to identify the issues and concerns around what would happen if the refinery was closed, curtailed or otherwise. We have been putting in place modelling about what we can do to assist the community in the broader sense. There is a significant amount of concerns should the refinery cease operations or curtailment.
We are working on what that means for the education sector, the health sector, for real estate …
Ms Walker: It means disaster.
Mr GILES: … and how we work with Westpac for people who have home loans in the region.
I have just tabled a copy of a letter we received in response from Rio Tinto to our latest correspondence. There is no doubt that this is a significant concern. Nhulunbuy is a mining town.
Ms Walker: It is not a significant concern, it is a crisis.
Mr GILES: Madam Speaker, I listen to the interjections that keep coming from the member for Nhulunbuy. While we have been working on this side to come up with solutions to support the Rio refinery and make sure it continues operation, we have not seen anything from the member for Nhulunbuy about being part of the solution.
Ms LAWRIE: A point of order, Madam Speaker! Standing Order 113: relevance. Can you release the social and economic impact analysis?
Madam SPEAKER: It is not a point of order. Sit down.
Mr GILES: Thank you very much, Madam Speaker. I know the member for Nhulunbuy and the Leader of the Opposition have had briefings on this matter and are well aware of what is occurring with Rio. I am more than happy to give them another briefing to identify what some of those …
Ms WALKER: A point of order, Madam Speaker! Could the Chief Minister get seat 1E next to me on Qantas Friday morning and I will give him a briefing?
Madam SPEAKER: Honourable members, I warn that I will not tolerate outbursts like that again. Gas to Gove is topical; yes, it is critical for many Territorians as it is for the government and the opposition. Member for Nhulunbuy, you are on a warning.
Mr GILES: I reaffirm that we are fully committed to working with the community in the region of Nhulunbuy and ensuring there is future economic direction there. We eagerly await Rio Tinto’s decision. We are hoping for the best but preparing for the worst.
ANSWER
Madam Speaker, I thank the member for Drysdale for the question. The member for Drysdale, like everyone on this side of the Chamber, is very concerned about the future economic conditions for the region in East Arnhem Land. Over this year and prior to that, we have been working to ensure the refinery can continue operating. We had a request for gas late last year, as the former Labor government had a request for gas which they did not fulfil and did not guarantee as much as we did. We have also offered the opportunity of being able to utilise coal — whether or not the refinery could operate better on a cheaper fuel supply of coal.
There is now a number of solutions on board in terms of gas. All the gas that has been requested has been offered up by the Northern Territory government, the federal government and private suppliers who are keen to provide gas solutions.
Reports have been referred to today by the member for Nhulunbuy that Rio is not looking at going towards a gas solution. Rio makes its decisions based on commercial terms, as you can understand. We received a briefing yesterday in Cabinet which informed us of Rio’s impending decision by the board about the future of the refinery for the Nhulunbuy region. We do not know when that board meeting will be. We presume it will be very soon, possibly this week, and that will put in place a decision which will determine whether the refinery will continue in operation or not.
In government we have been working very hard to identify the issues and concerns around what would happen if the refinery was closed, curtailed or otherwise. We have been putting in place modelling about what we can do to assist the community in the broader sense. There is a significant amount of concerns should the refinery cease operations or curtailment.
We are working on what that means for the education sector, the health sector, for real estate …
Ms Walker: It means disaster.
Mr GILES: … and how we work with Westpac for people who have home loans in the region.
I have just tabled a copy of a letter we received in response from Rio Tinto to our latest correspondence. There is no doubt that this is a significant concern. Nhulunbuy is a mining town.
Ms Walker: It is not a significant concern, it is a crisis.
Mr GILES: Madam Speaker, I listen to the interjections that keep coming from the member for Nhulunbuy. While we have been working on this side to come up with solutions to support the Rio refinery and make sure it continues operation, we have not seen anything from the member for Nhulunbuy about being part of the solution.
Ms LAWRIE: A point of order, Madam Speaker! Standing Order 113: relevance. Can you release the social and economic impact analysis?
Madam SPEAKER: It is not a point of order. Sit down.
Mr GILES: Thank you very much, Madam Speaker. I know the member for Nhulunbuy and the Leader of the Opposition have had briefings on this matter and are well aware of what is occurring with Rio. I am more than happy to give them another briefing to identify what some of those …
Ms WALKER: A point of order, Madam Speaker! Could the Chief Minister get seat 1E next to me on Qantas Friday morning and I will give him a briefing?
Madam SPEAKER: Honourable members, I warn that I will not tolerate outbursts like that again. Gas to Gove is topical; yes, it is critical for many Territorians as it is for the government and the opposition. Member for Nhulunbuy, you are on a warning.
Mr GILES: I reaffirm that we are fully committed to working with the community in the region of Nhulunbuy and ensuring there is future economic direction there. We eagerly await Rio Tinto’s decision. We are hoping for the best but preparing for the worst.
Last updated: 09 Aug 2016