Nola Marino (Forrest, Liberal Party) Share this | Link to this | Hansard source

I rise to speak on the continuing gas crisis in Western Australia and how it is still disproportionately affecting businesses in the south-west, in my electorate of Forrest. I have to again ask the question: why was it that on 3 June, when Apache Energy’s operations at Varanus Island exploded, wiping out one-third of the state’s gas supply, in spite of the logistics involved, south-west businesses experienced a sustained 100 per cent cut in their supply of gas? There is now concern that businesses affected by the gas shortage believe they may not be able to get fully back on their feet until at least next year and may never recover their losses through insurance or compensation.

I want to inform this House that the gas supply to Western Australian businesses, particularly those in the south-west of the state, has still not fully resumed. I have many questions I want answered by the authorities who have presided over gas allocation decisions, including why, in the immediate aftermath, south-west businesses were not able to enter into negotiations for the supply of any reduced amounts of gas that was available. What entity distributed, and on what authority did the energy provider distribute, gas to industry? Why wasn’t there any transparency of process afforded to businesses so that industry knew what businesses were being allocated gas and in what proportions? It is indeed premature for the WA Labor Premier to declare the gas crisis over. He may want it to be over in the minds of voters, as he has prematurely called a state election for 6 September, knowing full well that the report on the investigation by NOPSA into the cause of the explosion at Varanus Island will come out well after the election results.

Since 8 August 2008 it has been announced that the Varanus Island facility is producing at 60 per cent capacity. However, this increased supply has not yet been provided to businesses in the south-west. I want to know what businesses are now receiving an increased supply of gas as a result of this increased production. Indeed, many south-west businesses were faced with no security of gas supply and, with the daily lottery through Alinta, were faced with the prospect of terminating staff and going out of business, an option none wanted to take. Instead, they secured alternative gas supplies, most paying around four times the amount of the usual supply cost. They also entered into contracts that, in some cases, would be in effect for extended periods beyond the shortage. Since securing alternative supplies, the same businesses have again reported that they have been unsuccessful in attempting to contract and negotiate with the gas entity from Varanus Island to resume gas supplies at the original price. Why have these businesses been precluded from having their gas supply recommissioned by their original gas supplier? It has been reported that, in securing alternative sources of gas, many businesses have had to also negotiate the transport costs of the gas with a third party at an additional cost. I want to know whether this process was as transparent as possible and whether any assistance could have been given ex gratia by the state government. (Time expired)