BHP — IRON ORE
ROYALTY PAYMENTS
27. Hon JACQUI BOYDELL to the minister representing the
Minister for Mines and Petroleum:
I refer to the article I mentioned
yesterday by Gareth Parker cited in question without notice 6.
(1) Is BHP
disputing the government's position that it should pay back the
deduction it has claimed over the years; and, if so, on what grounds?
(2) Has the
government sought legal advice on this issue other than that of the state
Solicitor-General; and, if so, from whom?
(3) Will the
minister table all correspondence between BHP and the Minister for Mines and
Petroleum's office on this issue?
(4) How often are
BHP's royalty returns audited?
(5) Why have previous audits of BHP
not uncovered the alleged discrepancies?
(6) What meetings
has the minister's office had with BHP over this matter, including
dates and those who were present at the meeting?
(7) Does BHP's legacy state
agreement define ''legitimate deductions'' and what are those
deductions?
The PRESIDENT: I will say
before the Minister for Regional Development responds that that is a very
lengthy question and probably falls outside of standing order 105. The member
might want to have a look at that.
Hon
ALANNAH MacTIERNAN replied:
I thank the member for the question.
The following information has been provided by the Minister for Mines and Petroleum.
(1) Royalty
assessment matters that arise are dealt with in confidence between the state
government and the company.
(2) I am not in a
position to confirm or deny whether the government has sought legal advice on
this issue. Any such disclosure could possibly provide BHP with a forensic
advantage in relation to the dispute between BHP and the state. Any legal
advice obtained by the government on this matter, whether from the State
Solicitor's Office or otherwise, would be subject to legal professional
privilege.
(3) No.
(4) They are
audited at least annually.
(5) At all times
the state's position has been that the royalties are to be calculated
in accordance with the state agreements.
(6) Royalty
assessment matters that arise are dealt with in confidence between the state
and the company.
(7) Legitimate
deductions are set out in each state agreement and are therefore on the public
record.