Senate debates

Thursday, 20 August 2009

Questions without Notice

Liquefied Natural Gas Exports

2:41 pm

Photo of Mark BishopMark Bishop (WA, Australian Labor Party) Share this | | Hansard source

My question is to the Minister for Innovation, Industry, Science and Research, representing the Minister for Resources and Energy, Senator Carr. Can the minister update the Senate on developments relating to the Gorgon liquefied natural gas project off the coast of Western Australia: what is the export potential of this project and, in particular, what is the potential for sales to our trading partners in the Asia-Pacific area; what other benefits can Australia expect from this project; what are the implications for local workers and firms; what does the project mean for the domestic supply of gas in Western Australia; how much government revenue is the project expected to generate; and how might this revenue be applied?

Honourable Senators:

Honourable senators interjecting

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Order on both sides! I am seeking to call the minister.

Honourable Senators:

Honourable senators interjecting

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Shouting across the chamber is disorderly. I need to call the minister to continue question time.

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

This week Australia signed its biggest trade deal ever, Senator Bishop. Under this agreement the Gorgon joint venture will export $50 billion of liquid natural gas to—

Honourable Senators:

Honourable senators interjecting

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Order! I am very patient; I am waiting for order such that I can hear someone who is on their feet to take a point of order.

Photo of Kate LundyKate Lundy (ACT, Australian Labor Party) Share this | | Hansard source

Mr President, I raise a technical point of order. I am not sure Senator Carr’s microphone was operating during his answer to that question.

Honourable Senators:

Honourable senators interjecting

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Order on both sides! You make it very difficult to decide whether the microphone was on or off given the amount of noise that has gone across the chamber today. We need order so that we can proceed. Senator Carr, continue with your answer.

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

Under this agreement, the Gorgon joint venture—

Honourable Senators:

Honourable senators interjecting

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Order on both sides! If you want to debate the issue, the time to debate it is at the end of question time.

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

Under the agreement, the Gorgon joint venture will export some $50 billion worth of liquid natural gas to China. A week earlier, Exxon Mobil and Petronet signed a multibillion dollar deal to supply Gorgon LPG to India. This confirms the strength of Australia’s trade and investment relationship with these two economic giants of our region. It also confirms Australia’s continued status as a global energy superpower supplying clean energy to the world.

On Monday the Commonwealth and the government of Western Australia announced that they will jointly accept any long-term liability arising from the storage of carbon dioxide associated with the Gorgon project. This clears the way for the joint venturers—Chevron, Exxon Mobil and Shell—to make a final investment decision before the end of the year. Economic modelling undertaken by the joint venturers suggests that overall the Gorgon project will create some 6,000 jobs in the construction phase and 3,500 ongoing jobs over the life of the project.

Honourable Senators:

Honourable senators interjecting

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Order on both sides! There needs to be silence. Interjecting, as I have pointed out already, is quite disorderly. The minister is entitled to be heard in silence.

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

It will use some $33 billion worth of locally purchased goods and services. It will generate some $40 billion in revenue, which can be used to fund schools, hospitals, roads and other infrastructure in Western Australia and across Australia for decades to come. (Time expired)

Photo of Mark BishopMark Bishop (WA, Australian Labor Party) Share this | | Hansard source

Mr President, I ask a supplementary question. Can the minister inform the Senate what the Gorgon joint venturer is doing to ensure that Australian firms have full, fair and reasonable opportunity to participate in the project? Does the project have an Australia industry participation plan and if so, how is this plan being implemented? Has the Commonwealth provided funding or other support to facilitate the involvement of local suppliers? What role is the Industry Capability Network playing in assisting the joint venture to implement the plan? Does the plan meet the government’s objective of giving local suppliers—

Photo of Bob BrownBob Brown (Tasmania, Australian Greens) Share this | | Hansard source

Mr President, on a point of order: the new plan in here is for a two-minute answer to the first question and a one-minute answer to subsequent questions. There were eight questions in the senator’s first question to the minister, and we are now at the sixth or so. It is simply impossible to answer so many questions. I ask if you would take note of these questions and report back to the Senate. I ask you to report on whether or not it is feasible for eight questions to be answered in two minutes or six questions to be answered in one minute. There needs to be some reason brought into the process.

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

There is no point of order.

Photo of Mark BishopMark Bishop (WA, Australian Labor Party) Share this | | Hansard source

There is more! Does the plan meet the government’s objective of giving local suppliers timely and transparent involvement in major procurement and construction projects such as this one?

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

I thank Senator Bishop. The Gorgon joint venture was to be developed as an Australian industry participation policy in the early stages of this project and it is actively ensuring that local firms have every opportunity to get involved. It is working with the Industry Capability Network to identify Australian suppliers for the project. The Commonwealth has granted the network $159,000 to support this work. Gorgon is also advertising upcoming procurement and contract opportunities on its website, engaging with potential suppliers through regular supplier briefings and introducing Australian firms to global companies and supply chains.

Honourable Senators:

Honourable senators interjecting

Photo of Chris EvansChris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | | Hansard source

You wanted us to answer the question. He has answered the first seven and this is the eighth.

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Order! Senator Carr, resume your seat. I will call you to continue your answer again when there is silence.

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

Mr President, they are very disorderly here. The joint venture has engaged Australia industry early to give firms enough time to establish their competitive position. This is a great example of what the government is trying to achieve through the new Australian industry participation package. (Time expired)

Photo of Mark BishopMark Bishop (WA, Australian Labor Party) Share this | | Hansard source

I have even more questions, Mr President. Can the minister give the Senate more information on the government’s Australian industry participation package? What is the value of the package, what is its purpose and what benefits is it expected to bring? What are the main elements of the package and how will they be implemented to give local firms the opportunity to compete for and win work both domestically and internationally? Will the package apply to both public sector and private sector—

Photo of Bob BrownBob Brown (Tasmania, Australian Greens) Share this | | Hansard source

On a point of order, Mr President: that is the 20th question that has been put by the questioner. The point of order is this: the questions are being written in the House of Representatives for the Senate. I ask you, Mr President, if you would send to the Speaker of the House the sessional order for the Senate for distribution to the ministers so that they can write questions appropriate for the time given in the Senate.

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

There is no point order. That is not a matter for me.

Photo of Mark BishopMark Bishop (WA, Australian Labor Party) Share this | | Hansard source

Will the package apply to both public sector and private sector contracts? To what extent does it focus on building the capacity of Australian industry to make it more competitive?

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

That is a very good series of questions there, Mr President. The government has announced $19.1 million for an Australian industry participation package which is designed to get more local firms involved in major projects and procurements both at home and abroad. The money will be used to identify existing capabilities, build new ones, and match those capabilities to new opportunities. The package includes an extra $8.5 million for the Industry Capability Network, which links firms with opportunities; $8.2 million to supply advocates to champion Australian industry and to improve competitiveness; and $2.5 million to extend the use of Australia’s industry participation plans to major Commonwealth contracts and projects. This is about giving Australian firms a fair go. It is about ensuring that people are encouraged to buy Australian, both at home and abroad. (Time expired)