Senate debates
Tuesday, 15 September 2009
Questions without Notice
Liquefied Natural Gas Exports
2:52 pm
Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source
My question is to the Minister for Innovation, Industry, Science and Research, Senator Carr. Can the minister please inform the Senate as to the Gorgon liquefied natural gas project which is to be developed off Western Australia? Specifically, what benefits is the project expected to bring, with particular reference to employment, export earnings and government revenue? More specifically, what opportunities is the project expected to create for Australian industry? What action has the joint venture taken to maximise these opportunities?
John Hogg (President) Share this | Link to this | Hansard source
Order! Resume your seat, Senator Pratt. When there is silence we will proceed. Continue, Senator Pratt.
Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source
I was asking what action the joint venture has taken to maximise these opportunities. Also, what support has the Commonwealth provided to facilitate the joint venture’s engagement with local suppliers? How does this relate to the government’s wider agenda to increase Australian industry participation in major projects? (Time expired)
Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source
I thank Senator Pratt for her question, and it is a pity the opposition was not more interested in creating jobs for Australians. The final investment decisions signed off by the Gorgon joint venturers yesterday will generate jobs and exports for Australians without Work Choices while making huge contributions to Australia’s greenhouse gas abatement worldwide. The project is to support 10,000 direct and indirect jobs in the peak construction phase and 3,500 ongoing—
Mathias Cormann (WA, Liberal Party, Shadow Parliamentary Secretary for Health Administration) Share this | Link to this | Hansard source
Senator Cormann interjecting—
Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source
Senator Sterle interjecting—
John Hogg (President) Share this | Link to this | Hansard source
Senator Carr, resume your seat. Senator Cormann and Senator Sterle, it is disorderly to engage in shouting across the chamber whilst Senator Carr is answering the question. Senator Carr, continue.
Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source
The project will create some 3½ thousand ongoing direct and indirect jobs throughout its life. It will deliver around $300 billion in export earnings over the next 20 years. It will generate $40 billion in government revenue, which can be used to fund schools, hospitals, roads and other infrastructure for decades to come. It is a pity the opposition is not concerned about these matters. Critically, it will also use $33 billion worth of locally purchased goods and services. Our aim is to get more people buying Australian at home and abroad. The Gorgon joint venture development is an Australian Industry Participation Plan project, which will see that in early stages of the project there will be opportunities given for local firms to establish their competitive positions. It is working with the Industry Capability Network to identify Australian suppliers for the project, and the Commonwealth has granted the network $159,000 to support this work. The Gorgon project is also advertising upcoming program procurement contract opportunities on its website. (Time expired)
Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source
Mr President, I ask a supplementary question. Can the minister please inform the Senate on further measures to support Australian industry participation through reform of the Enhanced Projects By-Law Scheme and the Tariff Concession System, as recently outlined in the Australian Government Procurement Statement released in July? What is the purpose of these programs and why is reform necessary? How will these reforms foreshadowed by the government increase transparency and accountability? What benefits can be expected to flow from the reform process, not only for industry but also for project proponents and consumers?
Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source
Again, it is a pity the opposition is not interested in creating jobs for Australians. The reform package included a pledge to tighten guidelines for the Enhanced Projects By-Law Scheme and the Tariff Concession Scheme. Yesterday the Minister for Home Affairs and I started consultations on the proposed changes to both these import duty relief programs. These changes will ensure that clearer Australian industry participation plans are developed upfront when projects are being designed. They will ensure that people only apply for import duty concessions after making a genuine, and I emphasise the word ‘genuine’, attempt to establish that no Australian producer can supply suitable goods. We want to ensure that these programs give Australian industry a fair go and reduce costs for project proponents, for businesses and for consumers. (Time expired)
Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source
Mr President, I ask a further supplementary question. Can the minister advise the Senate how these reforms relate to the other measures announced in the Australian Government Procurement Statement? What are the key elements of this statement? What implications do they have for existing initiatives, such as the Industry Capability Network and Australian industry participation plans? What new initiatives are proposed?
Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source
Mr President, I rise on a point of order. Senator Cormann has been making a series of gestures towards government ministers during this question time.
Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source
Senator Sterle interjecting—
John Hogg (President) Share this | Link to this | Hansard source
Senator Sterle! Senator Evans is on his feet to make a point of order. He is entitled to be heard and I need to hear what he is saying.
Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source
My point of order, Mr President, is if you would call Senator Cormann to order. His behaviour is, I think, unparliamentary. I have always been in favour of robust debate in this chamber but I think making signals to ministers when they are in the middle of their answering questions or a question is disorderly and I ask you to bring Senator Cormann to order.
John Hogg (President) Share this | Link to this | Hansard source
There is no point of order. I have been watching to my right and listening to the matter that has been raised as part of the question. I cannot look at both sides at once.
Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source
Senator Chris Evans interjecting—
John Hogg (President) Share this | Link to this | Hansard source
Order! I am saying at this stage there is no point of order. I will review the tape, and if there is a need to come back to the chamber then I will. But at this stage it is not possible for me to look at both sides at the one time, in spite of some of the capabilities people might think I have from time to time.
Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source
Mr President, I rise on a point of order.
John Hogg (President) Share this | Link to this | Hansard source
I have ruled on the point of order. Is this a separate point of order?
Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source
Yes, it is. Mr President, when you review the tape, I would invite you to come back into the chamber and report whether there is any substance to the quite outrageous allegation made on broadcast by the Leader of the Government in the Senate that slurs Senator Cormann. The gestures that Senator Cormann made, I am told, refer to numbers and there is the implication that the finger gestures were somehow inappropriate or rude. And to make that slur, Mr President, is as unparliamentary as that which the leader asserted.
Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source
No, if it was a slur then I would not have asserted it.
Mathias Cormann (WA, Liberal Party, Shadow Parliamentary Secretary for Health Administration) Share this | Link to this | Hansard source
Mr President, on the same point of order: I just wanted to clarify that I was counting the number of questions that were being asked with my fingers, and if you rule that this is out of order, I will obviously—
John Hogg (President) Share this | Link to this | Hansard source
I am trying to get question time to the situation where it can flow as smoothly as possible. I said there was no point of order. I said that I would get the tape reviewed. And I said that if needs be I would come back and report to the Senate—if needs be. But I will not come back to this Senate and report unnecessarily if there is nothing that happened on the tape. We will review the tape and we will review the Hansard.
Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source
Mr President, if I may have your indulgence: if the tape shows that there was nothing untoward done by Senator Cormann then you will not be reporting, but the assertion by the Leader of the Government in the Senate will remain on the Hansard and that is what the opposition objects to.
John Hogg (President) Share this | Link to this | Hansard source
I will review the totality of what has been raised and, if needs be, I will report back to the Senate. I will review the totality.
Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source
Senator Chris Evans interjecting—
John Hogg (President) Share this | Link to this | Hansard source
Order! Senator Pratt, have you finished?
Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source
No, Mr President, and I would like to conclude my question, if I may. I would like to know how these measures improve the chances of local firms securing work on major projects and procurements, including those funded by the Commonwealth.
Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source
I am keen to answer this question. The overall effect of the changes involves an extra $8.5 million—
Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source
How much?
Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source
$8.5 million, Senator Conroy—over four years for the Industry Capability Network, which uses procurement experts to link Australian companies to project opportunities in Australia and overseas. It includes another $8.2 million over four years to appoint business specialists to supplier advocates to champion Australian industry, to develop networks and supply chain partnerships, and to improve competitiveness. It also includes $2.5 million over four years to extend the Australian Industry Participation Plan program to firms bidding for major Commonwealth contracts and work on Commonwealth funded infrastructure projects, including projects supported by the Build Australia Fund. Along with these reforms announced yesterday—(Time expired)
Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source
Mr President, I ask that further questions be placed on the Notice Paper.