Skip to main content
Home

Parliamentary Questions

Question Without Notice No. 40 asked in the Legislative Council on 13 February 2019 by Hon Robin Scott

Minister responding: Hon M. McGowan
Parliament: 40 Session: 1

Answered on 13 February 2019

STATE AGREEMENTS — CONCESSIONS

40. Hon ROBIN SCOTT to the minister representing the Minister for State Development, Jobs and Trade:

(1) Will the minister confirm that in an article published in the Kalgoorlie Miner of Wednesday, 6 February 2019, Hon Mia Davies, MLA, wrote, in reference to concessions allegedly given to BHP and Rio Tinto, ''This was done, in part, to offset the companies' obligations under their State Agreements to develop downstream processing''?

(2) Will the minister confirm that the relevant state agreements oblige the companies to investigate the feasibility of secondary processing and of an integrated iron and steel industry, but do not impose on the companies obligations to develop downstream processing?

(3) Will the minister confirm that the relevant state agreements affirm that no future act of Western Australia will operate to increase the liabilities or obligations of the companies for rents or royalties?

Hon ALANNAH MacTIERNAN replied:

I thank the member for the question. The Minister for State Development, Jobs and Trade has provided the following answer.

(1) This part of the question lies outside the minister's responsibility.

(2) The processing obligations for relevant state agreements vary depending on the state agreement and were triggered by annual production limits. Both BHP and Rio Tinto have met their processing obligations under the earlier state agreements.

(3) The relevant 1963 and 1964 agreements contain such a provision. The provision does not prevent the state and the relevant company from agreeing amendments to their state agreements to increase both rents and royalties. Such increases have been agreed by the parties over the years.