Gillman Land Sale

Ms CHAPMAN (Bragg—Deputy Leader of the Opposition) (14:24): A supplementary to the Treasurer: given the depressed circumstances of the resources sector, as the minister has outlined in the answer, can he tell the parliament if his government has entered into any negotiations with ACP in respect of diversifying the development of the site outside of being an oil and gas hub?

The Hon. J.R. RAU (Enfield—Deputy Premier, Attorney-General, Minister for Justice Reform, Minister for Planning, Minister for Housing and Urban Development, Minister for Industrial Relations, Minister for Child Protection Reform) (14:25): The situation in respect of the negotiations with ACP is that they have entered into an arrangement whereby, in effect, they have an option to purchase. There are certain conditions precedent in that option which had to be discharged by the government, and those have been discharged. We are now in the phase of the agreement where there are certain conditions precedent which are entirely in the hands of ACP, and it's my expectation that they should get on with the process of getting those things dealt with as quickly as possible so that there can be—

Mr Marshall: What sort of things?

The Hon. J.R. RAU: They have to make appropriate preparations for the subdivision of the land, for example. These things are things that they, under the agreement, are obliged to do.

Mr Marshall interjecting:

The Hon. J.R. RAU: I say again: what the government has to do in respect of fulfilling the conditions precedent necessary for the final execution of this agreement has been done, and we are now waiting for ACP to do their bit so that there can be settlement upon the land. Now, what ACP ultimately choose to do with that land, at the time of the settlement, is a matter between them and the people who they are negotiating commercially with.

I think we need to make it clear that, in the event of ACP fulfilling their obligations under this agreement, what we are expecting to see is them to actually pay a substantial amount of money to the government as an initial first-phase purchase for an amount of land. They will then deal with the commercial aspects of that with whomever they are dealing, so that's a matter for them. Can I say that this question has been asked in many ways.

Members interjecting:

The Hon. J.R. RAU: This question has been—

Members interjecting:

The SPEAKER: The leader is warned for the second and final time. The deputy leader is already on two warnings.

The Hon. J.R. RAU: Thank you, Mr Speaker. My silence was apparently goading them.

The SPEAKER: Yes.

The Hon. J.R. RAU: As I have said repeatedly in this place, the fact of the matter is that, whilst there was an expectation by ACP that there would be an opportunity for the creation of an oil and gas hub, it has been said many times here, by me and by the former minister, that, obviously, that is a commercial matter over which the government ultimately does not have control. Things such as, for example, the fact that the price of oil has been reduced substantially by market forces or market manipulation, some might say, over the last 12 months or so, and there has been a dramatic change in the economics of the oil and gas industry, are things over which this government has no control whatsoever.

Members interjecting:

The Hon. J.R. RAU: That's a matter which ACP will deal with in its own commercial fashion, in its own good time.

The SPEAKER: The member for Stuart is called to order, and the member for Mount Gambier is warned for the first time. Supplementary, deputy leader.