Sharryn Jackson (Hasluck, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Resources and Energy and Minister for Tourism. How will the final investment decision for the Gorgon project secure jobs, and contracting and business opportunities, for Australian workers and companies?

Martin Ferguson (Batman, Australian Labor Party, Minister for Resources and Energy) Share this | Link to this | Hansard source

I thank the member for Hasluck for her question. She is someone who is always concerned about the issue of jobs and business opportunities for Australian companies. In that context, the parliament welcomed the final investment decision by the Gorgon joint venture partners on Monday for a project worth $43 billion. The joint venture partners Chevron, ExxonMobil and Shell will fund this project from their own balance sheets and in doing so deliver 10,000 direct and indirect jobs during the construction period alone. I also welcomed on Tuesday evening Chevron entering into a further heads of agreement for the long-term supply of Gorgon LNG to Korea, potentially opening up a much expanded LNG trading partnership between Australia and Korea—potentially a further export opportunity of 1.5 million tonnes per annum of LNG.

As is always the case with major projects such as this, it is now the responsibility of government to actually work with industry to guarantee the maximum available job opportunities in an immediate sense. That was the very question put to the joint venture partners at the announcement of the project in Perth on Monday. In that context I am delighted to advise the House that, when it comes to jobs, jobs and more jobs for Australians, project construction is already moving forward. Already $2 billion worth of contracts have been awarded—many to major Australian based companies. For example, Thiess has won a $500 million contract for site preparation on Barrow Island. In a joint venture partnership, Thiess, with Decmil Pty Ltd and Kentz Pty Ltd, has been awarded a further $520 million contract to build the 3,300-bed Gorgon construction village. This will mean jobs on the ground, of great benefit to all Australians. It is also interesting to note that Toll Holdings has won a $180 million contract for the Barrow Island supply base and logistics.

I go to the issue of Mermaid Marine Australia and its further $100 million contract for providing access to the Dampier marine supply base, and the Australian Marine Complex and LandCorp has been contracted to provide waterfront roll on, roll off ferry terminal and wharf facilities at Cockburn Sound near Fremantle. In addition to this, the Offshore Marine Services alliance has won a $240 million contract for tugs and barges, and Agility Logistics a $160 million contract for supply base operations and transportation services between Perth and Dampier and the supply base and Cockburn Sound. Schenker Australia will also conduct freight-forwarding activities.

As we all appreciate, the magnitude of the Gorgon project is demonstrated by the fact that it will be the biggest and most challenging private logistics and supply chain exercise ever attempted in the world. Can I also say that in the immediate future a further $10 billion of contracts will be rolled out over the next three months, including this week’s award of an additional $2.7 billion engineering, procurement and construction management contract to the Kellogg joint venture, consisting of Kellogg, Brown and Root, JGC Corporation and the Australian based companies Clough and Hatch.

This is a project that will deliver Australia thousands of jobs and training opportunities, contracting and business opportunities, and associated prosperity. It will also deliver across the length and breadth of Australia. In announcing the project the joint venture partners also very clearly indicated that Australia is now very well placed to achieve further major investments akin to the Gorgon investment. I refer to the statements, for example, by George Kirkland—an executive vice president of Chevron. He said:

There’s no doubt that this positions Australia very, very strongly in the gas world. It really and truly does.

The good news is Saudi Arabia is all about oil, and what we’re seeing in Australia is all about gas. And for the future, and when you consider the environmental side, Australia is in a great, great position …

He went on to say:

Asia has been growing, growing significantly. And where’s Australia? Great position to really deliver on a cost advantage basis, that market.

I will leave you with those comments. The Gorgon project is a great achievement for Australia. It means real jobs and business opportunities here on the ground now. And, more importantly, it is a very strong statement to the world that Australia is alive for investment opportunities akin to Gorgon. It is now our responsibility to make Gorgon a success and to deliver the jobs on the ground, and in doing so attract further investment akin to Gorgon.

Barry Haase (Kalgoorlie, Liberal Party, Shadow Parliamentary Secretary for Roads and Transport) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer the Prime Minister to his pre-election commitment to provide the Western Australian state government with 25 per cent of the royalties from the Gorgon gas project. When will the Prime Minister introduce legislation to guarantee that Western Australia receives its share of these royalties?

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

The Australian government is resolved to honour its commitments to the WA government, whoever won the last WA election; and we will do it. The reason for this is that the WA government is actually in the business of rolling up its sleeves and making projects work. That is why this government is working effectively with them. I also draw the honourable member’s attention to the fact that, on the broader question of economic policy, the WA Treasurer, Mr Buswell, has fully endorsed the overall economic strategy of this government—including its stimulus strategy. We work well with them and will continue to do so into the future.

Opposition members interjecting