Mr BOHLIN - 2011-05-04
In the 2008-09 budget, the government allocated $30m for the new overland conveyor belt for the Port of Darwin. Talk about job creation to the engineering sector! Talk about the anxiety of the engineering sector! Why has that money not been spent, and where has that $30m gone from this budget?
ANSWER
Madam Speaker, I thank the member opposite for the dorothy dixer. Clearly, he does not understand what has occurred during that period; that massive private investment you need to get mines up and operational has, essentially, dropped right away. We have always planned the second overland conveyor belt system for the port - we have allocated and budgeted for it - based on the high growth boom in resources that was occurring pre-GFC. The GFC struck, which is why you are referring to the 2008-09 financial year which was pre-GFC. . The GFC struck and ...
Mr Elferink: No, it was not. It was in last year’s budget as well.
Madam SPEAKER: Order! Order!
Ms LAWRIE: The 2008-09 …
Mr Elferink interjecting.
Madam SPEAKER: Order! Member for Port Darwin!
Ms LAWRIE: You idiot! The 2008-09 Budget, handed down in May 2008, was pre-GFC, you idiot ...
Mr Elferink interjecting.
Madam SPEAKER: Member for Port Darwin!
Ms LAWRIE: Come in spinner! Oops, member for Port Darwin, you do not even understand that.
What we are doing, and what we have consistently told industry, is we are very closely monitoring what is occurring with new production in the Territory. It will take more than 18 months from a go-live decision on a mine regarding new production in the Territory, to ore across the port. The most advanced in that scenario is Wonarah, with phosphate in Tennant Creek. They have signed off an agreement with the traditional owners there so, obviously, that is first cab off the rank in the logistics of mine to production.
We also have to look at quantities in existing production, but we are tracking well with the existing system. You do not build something until you need it, because the build period will be less than the warning we get of a decision to go live with production in a new mine. So, it is tracking well. We have put money into upgrading in this 2011-12 Budget. There is funding for the upgrade of the existing conveyer belt system to meet the environmental requirements and standards we should be meeting at the port. We have the money set aside for the port’s second conveyer system, dependent on production increase.
That is what smart governments do. You do not invest in a piece of infrastructure that you do not need yet. In 2008-09, it was the right thing to announce because we saw production capacity absolutely looming in the resources sector. You might recall the GFC hit in that period. There were mine closures and shut-downs in Western Australia. Literally, the exploration just dropped right away for a period of a few months.
Since then, we have had a rebound. We have had something like $170m in new mineral exploration in the Territory as a result of the strategies of this government.
ANSWER
Madam Speaker, I thank the member opposite for the dorothy dixer. Clearly, he does not understand what has occurred during that period; that massive private investment you need to get mines up and operational has, essentially, dropped right away. We have always planned the second overland conveyor belt system for the port - we have allocated and budgeted for it - based on the high growth boom in resources that was occurring pre-GFC. The GFC struck, which is why you are referring to the 2008-09 financial year which was pre-GFC. . The GFC struck and ...
Mr Elferink: No, it was not. It was in last year’s budget as well.
Madam SPEAKER: Order! Order!
Ms LAWRIE: The 2008-09 …
Mr Elferink interjecting.
Madam SPEAKER: Order! Member for Port Darwin!
Ms LAWRIE: You idiot! The 2008-09 Budget, handed down in May 2008, was pre-GFC, you idiot ...
Mr Elferink interjecting.
Madam SPEAKER: Member for Port Darwin!
Ms LAWRIE: Come in spinner! Oops, member for Port Darwin, you do not even understand that.
What we are doing, and what we have consistently told industry, is we are very closely monitoring what is occurring with new production in the Territory. It will take more than 18 months from a go-live decision on a mine regarding new production in the Territory, to ore across the port. The most advanced in that scenario is Wonarah, with phosphate in Tennant Creek. They have signed off an agreement with the traditional owners there so, obviously, that is first cab off the rank in the logistics of mine to production.
We also have to look at quantities in existing production, but we are tracking well with the existing system. You do not build something until you need it, because the build period will be less than the warning we get of a decision to go live with production in a new mine. So, it is tracking well. We have put money into upgrading in this 2011-12 Budget. There is funding for the upgrade of the existing conveyer belt system to meet the environmental requirements and standards we should be meeting at the port. We have the money set aside for the port’s second conveyer system, dependent on production increase.
That is what smart governments do. You do not invest in a piece of infrastructure that you do not need yet. In 2008-09, it was the right thing to announce because we saw production capacity absolutely looming in the resources sector. You might recall the GFC hit in that period. There were mine closures and shut-downs in Western Australia. Literally, the exploration just dropped right away for a period of a few months.
Since then, we have had a rebound. We have had something like $170m in new mineral exploration in the Territory as a result of the strategies of this government.
Last updated: 09 Aug 2016