Oil and Gas Sector

Mr VAN HOLST PELLEKAAN (Stuart) (14:27): Second supplementary, sir: given that in his initial answer the minister referred to the importance of the new managing director, can he explain why, on 11 April in his media release when he announced that Ambassador Exploration had won PEL 570, none of the directors had that experience?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy, Minister for Small Business) (14:28): Again, I will go back to the initial answer that I gave. These licences are bid through a process which is done by the department and allocated by the minister's delegate. I have to say there is nothing that the opposition have offered the government, or anyone else, to show that there has been any impropriety in this process at all.

Mr van Holst Pellekaan: Just answer the question.

The Hon. A. KOUTSANTONIS: I am answering the question, but I am going to defend the industry against accusations you are making. I have to say that the regulator in this state is held in the highest regard and I, sir, take a lot of offence at the implications the opposition are making.

Mr Marshall interjecting:

The Hon. A. KOUTSANTONIS: Yes, I know what your views are about oil and gas. I understand.

The SPEAKER: The Treasurer is very close to leaving the chamber.

The Hon. A. KOUTSANTONIS: Sir, I don't mean to be disruptive and I'm not trying to be disruptive. I am simply attempting to answer the questions.

The SPEAKER: Your responding to interjections is itself a disruption.

The Hon. A. KOUTSANTONIS: I look forward to you putting those interjections down, sir.

The SPEAKER: Well, it would help if the minister would not goad the opposition.

The Hon. A. KOUTSANTONIS: Yes, sir. The process is independent of government and is done so. They assess the capability of the companies.

Mr Whetstone: Two hands in his pockets.

The SPEAKER: The member for Chaffey is warned a second and final time. If I hear another comment like that, I will name him.

The Hon. A. KOUTSANTONIS: I don't make the winning bids. They are made by our delegate. The reason we choose a delegate is because they have the expertise within the industry to understand the capabilities of companies. What we are attempting to do in the Cooper Basin is create a competitive tension to try to get larger companies who have the expertise in the United States to come and bring their expertise to South Australia. The reason we do that through this petroleum exploration licence program—

The SPEAKER: Point of order?

Mr VAN HOLST PELLEKAAN: Standing order 98: I ask you to direct the minister to come back to the substance of the question, which is why when he made—

The SPEAKER: If you go on any further, I will remove you from the chamber. You have made a point of order; you are now going into an impromptu speech. Minister.

The Hon. A. KOUTSANTONIS: I think it's fair to say, was the bid assessed on the company's ability? It was. Was it awarded on their ability? It was. If the shadow minister or anyone else wants to question their ability, I say they can make those accusations. I will defend the department. I will defend the ability of this company to have won the bid because I trust the regulators who awarded them the bid, because they are the best in the country.