Mr DUNHAM - 2003-10-15
Yesterday, after questioning from the opposition, you were forced to admit that there is still no local participation plan in place for the construction of the ConocoPhillips gas plant. Today, ConocoPhillips said that, at the height of the gas plant work force, there may be only 25% local participation, well below the 40% mentioned in this House yesterday.
The Martin Labor government has failed in its one task in this gas project, and that was to secure large numbers of jobs for Territorians. Is it true that the current draft local participation plan gives no firm guarantee on the number of locals who will be employed on the gas project and, in fact, the number could be less than the 25% given today by ConocoPhillips?
Mr Stirling: Unbelievable! Attack a major project!
ANSWER
Mr Acting Speaker, I pick up on the interjection from my colleague, the Deputy Chief Minister. It is astounding that the opposition continues to attack what is the stated intent of both ConocoPhillips and Bechtel to maximise local industry participation and employment on this particular plant. They have been absolutely resolute over the last two days in attacking the corporate commitments and credibilities of two major companies at the beginning of this massive project. We will check the Hansard, because I do not recall - and I will stand corrected - any member on this side committing to 40% local employment on this project yesterday, because it is certainly not a number that I would have mentioned.
Let us look at the history of this project. For honourable members who have never actually seen an LNG plant, I would suggest that people take the opportunity to go to Karratha and actually look at the scale and complexity of the engineering that goes into an LNG plant.
Mr Dunham: And how many Western Australians does it employ?
Mr HENDERSON: The constraining issue for …
Mr Dunham: How many from WA got the jobs?
Mr HENDERSON: Mr Acting Speaker, if the member for Drysdale wants to ask a question of myself as minister, he should listen to the answer. He will get the answer and he might learn something.
The constraining factors in regard to local employment on this particular project are skills and the capacity of Territory business to actually participate in this project. It is a world-class project. We have not built an LNG plant in the Northern Territory before. We are working very closely with ConocoPhillips and Bechtel to maximise local participation in this project. We are working very closely with Charles Darwin University and training providers to upskill Territorians, to give them the skills at the accredited level that they are going to require to work on this plant.
I will put this in perspective as to where we are at the moment on this project. The construction of the LNG plant itself is a $1.6bn project. The railway is a $1.3bn project. To date, we are right at the beginning of the LNG plant project. The civil works are being carried out at the moment, and $230m worth of contracts have gone to Northern Territory companies for work at the LNG plant right at the beginning of the project.
The total amount and value of work to Northern Territory businesses on the railway was $690m at the end of the project. In the first steps of this project, $230m to date and 73% of the work force at Wickham Point is not a bad start. In talking to the ISO over the last few days and weeks, they are very pleased about where Territory business is at at the moment. There are going to be winners and losers through the life of this project. Territory companies are going to bid for work, and will be either out-bid by other Territory companies or companies from interstate or internationally. However, it is a competitive process.
It is not a government contract. Government is not issuing the tenders. The private company Bechtel is issuing the tenders. The continuing attacks from members opposite, on both Bechtel and ConocoPhillips, regarding their stated intent to maximise industry participation and Territory jobs on this plant, does not stand them in good stead, and does nothing for corporate confidence in the body politic in the Northern Territory to actually work constructively with the big end of town to get these big projects to the Northern Territory, to maximise the benefits for Territorians.
Therefore, four or five months into the job, there are $230m worth of contracts to Territory people, compared to $690m in total on the railway. It is not a bad start.
The Martin Labor government has failed in its one task in this gas project, and that was to secure large numbers of jobs for Territorians. Is it true that the current draft local participation plan gives no firm guarantee on the number of locals who will be employed on the gas project and, in fact, the number could be less than the 25% given today by ConocoPhillips?
Mr Stirling: Unbelievable! Attack a major project!
ANSWER
Mr Acting Speaker, I pick up on the interjection from my colleague, the Deputy Chief Minister. It is astounding that the opposition continues to attack what is the stated intent of both ConocoPhillips and Bechtel to maximise local industry participation and employment on this particular plant. They have been absolutely resolute over the last two days in attacking the corporate commitments and credibilities of two major companies at the beginning of this massive project. We will check the Hansard, because I do not recall - and I will stand corrected - any member on this side committing to 40% local employment on this project yesterday, because it is certainly not a number that I would have mentioned.
Let us look at the history of this project. For honourable members who have never actually seen an LNG plant, I would suggest that people take the opportunity to go to Karratha and actually look at the scale and complexity of the engineering that goes into an LNG plant.
Mr Dunham: And how many Western Australians does it employ?
Mr HENDERSON: The constraining issue for …
Mr Dunham: How many from WA got the jobs?
Mr HENDERSON: Mr Acting Speaker, if the member for Drysdale wants to ask a question of myself as minister, he should listen to the answer. He will get the answer and he might learn something.
The constraining factors in regard to local employment on this particular project are skills and the capacity of Territory business to actually participate in this project. It is a world-class project. We have not built an LNG plant in the Northern Territory before. We are working very closely with ConocoPhillips and Bechtel to maximise local participation in this project. We are working very closely with Charles Darwin University and training providers to upskill Territorians, to give them the skills at the accredited level that they are going to require to work on this plant.
I will put this in perspective as to where we are at the moment on this project. The construction of the LNG plant itself is a $1.6bn project. The railway is a $1.3bn project. To date, we are right at the beginning of the LNG plant project. The civil works are being carried out at the moment, and $230m worth of contracts have gone to Northern Territory companies for work at the LNG plant right at the beginning of the project.
The total amount and value of work to Northern Territory businesses on the railway was $690m at the end of the project. In the first steps of this project, $230m to date and 73% of the work force at Wickham Point is not a bad start. In talking to the ISO over the last few days and weeks, they are very pleased about where Territory business is at at the moment. There are going to be winners and losers through the life of this project. Territory companies are going to bid for work, and will be either out-bid by other Territory companies or companies from interstate or internationally. However, it is a competitive process.
It is not a government contract. Government is not issuing the tenders. The private company Bechtel is issuing the tenders. The continuing attacks from members opposite, on both Bechtel and ConocoPhillips, regarding their stated intent to maximise industry participation and Territory jobs on this plant, does not stand them in good stead, and does nothing for corporate confidence in the body politic in the Northern Territory to actually work constructively with the big end of town to get these big projects to the Northern Territory, to maximise the benefits for Territorians.
Therefore, four or five months into the job, there are $230m worth of contracts to Territory people, compared to $690m in total on the railway. It is not a bad start.
Last updated: 09 Aug 2016