Oil and Gas Sector

Mr MARSHALL (Dunstan—Leader of the Opposition) (15:02): Thank you. Supplementary, sir: given that the minister was talking about the tender process, can the minister advise that prior operating history is a prerequisite for the tender situation that we have here in South Australia?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy, Minister for Small Business) (15:03): Mr Speaker, first and foremost, I will give the opposition leader the benefit of the doubt. The tender process is done independently of the executive. That is, all my statutory powers in the ability to grant petroleum retention licences, extensions or cessation of these licences is done by the department. Why? I do not have the expertise to be able to assess these bids. They are done by experts in the field.

The assessments are headed up by Mr Barry Goldstein, who is the head of the petroleum and geothermal branch within the Department of State Development, who is internationally recognised and recognised by the industry as being a world-leading expert within this field. Within the industry—

The SPEAKER: Point of order.

Ms REDMOND: The question wasn't about separation of powers. The question was clearly about whether the prior operating history is a relevant consideration for whoever undertakes that assessment.

The SPEAKER: I will listen carefully to what the minister says.

The Hon. A. KOUTSANTONIS: Within the industry, companies are formed, companies fold and they are acquired. What is taken into account is a number of things. Not only, I am advised, is it prior operating history, but also the people who are employed who are operating the company.

As an example, hypothetically, let's just say Mr David Knox starts another company one day when he leaves Santos and applies for a petroleum retention lease with a new company that has no trading experience. Is the Liberal Party really saying that the regulator should not allow that person to have a petroleum retention licence because the company he formed two weeks ago, and has got capital backing him, has never actually dug a well before? Are we just going to ignore his prior experience in Santos? Is that what you are saying? Of course not, Mr Speaker! That is the business experience of the Leader of the Opposition, sir; that is why he doesn't back business!

Members interjecting:

The Hon. A. KOUTSANTONIS: That is why business have turned their backs on the Leader of the Opposition!

Members interjecting:

The SPEAKER: The Treasurer is out of order.