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House of Assembly - Fifty-First Parliament, Second Session (51-2)
2008-04-30 Daily Xml
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Question Time

BHP BILLITON

Mr HAMILTON-SMITH (Waite—Leader of the Opposition) (14:10): Is the Premier aware of any consideration or plans by BHP to close down part of its administration operation here in Adelaide? What action has he taken to ensure that the benefits of the Roxby Downs mine project include expanded office functions in South Australia?

The Hon. M.D. RANN (Ramsay—Premier, Minister for Economic Development, Minister for Social Inclusion, Minister for the Arts, Minister for Sustainability and Climate Change) (14:10): I am very happy to answer those questions because what we are seeing are 30 mines that will be approved, I hope, in South Australia. We have seen a tenfold increase in mining exploration under this government compared with when the Liberals were in power, because they were anti-mining and anti-development. Someone had to have the guts to change the policy and embrace uranium mining—and it might as well have been me. I know that I am referred to as Yellowcake Rann around the place, but I am happy to live with that. I remember Pig Iron Bob and how long he lasted in office! I have a statement here:

BHP Billiton's Adelaide's office has grown significantly over the past two years with around 250 additional new positions created to work on the company's Olympic Dam Expansion Project.

So, up 250 jobs. I continue:

The company has also added several hundred new positions to the Olympic Dam operation.

So, it is hundreds and hundreds up on where it was previously. The statement from BHP Billiton continues:

Overall BHP Billiton's presence in South Australia is significant with, around 1,000 employees and subcontractors based in Adelaide—

a thousand jobs in Adelaide—

and a further 3,200 employed directly and indirectly at Olympic Dam. The company's Shared Services function, which has been based in Adelaide since 2000—

one of a series of announcements the previous government made about call centres—

is restructuring. This will involve a number of jobs being moved to Adelaide and about 50 positions being relocated closer to relevant businesses in Australia and overseas. Overall the number of Shared Services employees based within Adelaide will not alter significantly.

So, it has gone up hundreds and hundreds of jobs, but we did not hear that from the Leader of the Opposition, who is anti-development and anti-mining. It would be great to see an opposition that supports uranium mining.

The SPEAKER: Order! The Premier must not debate the question.

The Hon. M.D. RANN: The statement continues:

The company's combined corporate function in Adelaide is one of the largest within its global corporate network and BHP Billiton expects to remain a significant employer in Adelaide and South Australia for many years to come.

It is about to embrace the biggest mine in the world. Apparently, the Leader of the Opposition did not know that. It is the world's first trillion dollar resource. It is going to involve shifting 1.5 million tonnes of rock every day. It is going to see thousands and thousands of extra jobs. In fact, we expect—

Members interjecting:

The SPEAKER: Order, members on my left!

Mr Venning interjecting:

The SPEAKER: Order, the member for Schubert! The Premier.

The Hon. M.D. RANN: Let's give you some more detail because we know that you desperately hate the fact that, when the jobs figures come out, we see record jobs growth in this state. We know that you get very disappointed when you see record full-time jobs because we saw what happened when you were in power—we saw the casualisation of the workforce.

The fact is that jobs growth under this Labor government vastly exceeds that of the previous Liberal government in this state, of which the Leader of the Opposition was one of its shining stars. What will the Leader of the Opposition be remembered for? Privatisation—that is the only thing he will be remembered for.

The SPEAKER: Order! The Premier is debating the answer. He will return to the substance.

The Hon. M.D. RANN: I have some strong details here. Now we have some breaking news.

Members interjecting:

The SPEAKER: Order!

Members interjecting:

The SPEAKER: Order, members on my left!

The Hon. M.D. RANN: BHP Billiton is not leaving Adelaide; in fact, it is growing its Adelaide office into one of the biggest within its global network. BHP Billiton currently has in Adelaide the following numbers according to this brief: Olympic Dam expansion, 400 BHP Billiton employees and contractors; Olympic Dam personnel, of course, we have seen just in Adelaide 60 employees with plans to add many more; Shared Services, 543 jobs as of December 2007.

The total Adelaide workforce is estimated at more than 1,000 FTEs, believed to be South Australia's biggest corporate office. In addition, the Olympic Dam mine employs around 3,500 FTEs from BHP Billiton and contractors. Because the opposition has difficulty adding up, I am advised that the total BHP Billiton workforce in South Australia is more than 4,500 FTEs.

You might want to attack the mining industry. You might want to attack the Olympic Dam expansion. You might want to attack a company like BHP Billiton.

Ms Chapman interjecting:

The SPEAKER: Order!

Ms CHAPMAN: I rise on a point of order. Clearly, the Premier is now debating the matter.

The SPEAKER: Yes, I uphold the point of order. The Premier will return to the substance of the question.

The Hon. M.D. RANN: In 2007, BHP Billiton spent more than $500 million in South Australia on services from South Australian companies. It contributed more than $11 million in payroll tax and $64 million in royalties. The company's activities support an estimated 15,000 in indirect jobs across the state according to the South Australian Centre for Economics report released in March 2005. There are bound to be a lot more now.

As part of its current global strategy, BHP Billiton is focused on delivering services to its operations by devolving functions to its assets. The point is that here in South Australia—this is the good news is that you do not want to hear—the breaking news is that BHP Billiton is employing more people than ever in this state; far more than when you were in office—and we are getting behind the mining industry.

We are going to make sure that the mining industry is around for more than a hundred years to underpin prosperity in the future. It is the biggest jobs bonanza this state has ever seen. You should have been down there at the conference today rather than attacking one of the biggest companies in this state.

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