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Parliamentary Questions


Question Without Notice No. 541 asked in the Legislative Assembly on 13 August 2020 by Mr T.J. Healy

Parliament: 40 Session: 1

IRON ORE PROCESSING (MINERALOGY PTY. LTD.) AGREEMENT AMENDMENT BILL 2020

541. Mr T.J. HEALY to the Premier:

I refer to the legislation that passed Parliament last night, which seeks to deal with damages claims submitted by Clive Palmer, Mineralogy and International Minerals against the state of Western Australia.

(1) Can the Premier advise the house what is at risk for the people of Western Australia if this legislation is unnecessarily held up and delayed by a parliamentary committee?

(2) Can the Premier advise the house whether the action this government is taking to protect the interests of Western Australia could have been avoided?

Mr M. McGOWAN replied:

(1)–(2) I would like to comment on the most critical and time-sensitive issue in Western Australia today. I would like to pass on my thanks to members of this house, who passed the legislation in relation to Mineralogy last evening—for progressing an essential bill to protect the interests of the people of Western Australia. I just want to remind people what is at risk. It was canvassed by the Attorney General yesterday. The cost of failure in this matter is extreme. Never before have damages been sought under an arbitration process in relation to a state agreement act. We have 70 of those state agreement acts and they go back 80 or so years in Western Australia. Never before have they been sought to be arbitrated and never before have damages been sought by any party in relation to these matters. The position taken by Mr Clive Palmer is that he is seeking a payment from the taxpayers of Western Australia of around $30 billion—that is, $30 000 million, or $12 000 per person in Western Australia—plus further unspecified damages for other breaches he claims the former government made. That would mean it is well in excess of $30 billion. It is good that the bill passed the Assembly last night, and I would urge all members of Parliament, in both houses, to support the passage of the bill today.

Members would be aware that yesterday Mr Clive Palmer began proceedings to try to register his arbitration in the New South Wales Supreme Court. I understand he has also filed an application in the Queensland Supreme Court. It is essential that, for whatever legal wrangling that follows, Western Australia is in the strongest position possible to protect our state when the lawyers have it out in New South Wales and Queensland. It is in the interests of this state that during any proceedings or discussion in the New South Wales or Queensland Supreme Courts concerning an act of the Western Australian Parliament that will settle the matter, it is passed with the signature of the Governor upon it. Western Australia's case is far stronger if this legislation is passed today. We cannot have a parliamentary committee taking four to six weeks to consider this legislation. This is urgent; this is not some game.

It could be disastrous if the legislation is delayed. People across Western Australia are asking whether all of this could have been avoided. Let me be clear: as was canvassed in the media—I have been very clear publicly about this—my government, and me personally, believe that Premier Colin Barnett made the right decision and took the right course of action when, as state development minister, he protected Western Australia at the time from a proposal by Mr Palmer that was flawed and without appropriate detail. Mr Barnett made the right decision. We want to back in Mr Barnett and the former government's decision here. But it has come to our attention this morning that there was advice given to the government in 2014 that could have potentially put a stop to this whole sorry saga then and there. Following the handing down of the arbitral award by Mr McHugh, AC, QC, on 20 May 2014, advice was provided by the State Solicitor's Office concerning whether the state should appeal. That advice was provided in late May 2014 by Mr Robert Mitchell, SC, who is now Hon Justice of Appeal Mitchell, SC. Although that advice is not available to the current government, I have here a memo from Nicholas Egan, the State Solicitor. The memo confirms that the previous Liberal government was advised to appeal the award in 2014 and self-evidently that advice was not followed by the government of the day at ministerial level. For the benefit of the house, I now table the memo.

[See paper 3566.]

Mr M. McGOWAN: There was an opportunity to protect the taxpayers of Western Australia that the former government chose not to adopt. What is done is done. I cannot undo the inaction of the past, but we can do our best to rectify the situation we now face. I urge everyone to please abandon efforts to delay this legislation. Please support the people of Western Australia. This is an extremely important matter. I urge the Legislative Council and the Liberal Party to please help us undo the issues that have occurred in the past. Please help us undo the issues in the Legislative Council. Please help us get this legislation through. This legislation is designed to protect the taxpayers of Western Australia from a rapacious and greedy claim by a Queensland billionaire that would potentially bankrupt the state of Western Australia. Opposition members have an obligation to help us. They have an obligation to do the right thing by the people of Western Australia. This is not a joke. This is not a game. This is one of the most serious issues this Parliament will deal with. Please assist us here. We do not have the numbers in the upper house. We rely upon the opposition to help us. The ball is now in the Liberal Party's court. Help us resolve this matter.