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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2009-10-13 Daily Xml
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Question Time

SANTOS

The Hon. D.W. RIDGWAY (Leader of the Opposition) (14:29): I seek leave to make a brief explanation before asking the Minister for Mineral Resources Development a question about Santos.

Leave granted.

The Hon. D.W. RIDGWAY: As members would be aware, I think it was last year that we passed legislation in the parliament to remove the cap on share ownership within Santos. At the time, the Premier and the minister gave assurances that the operations of Santos would continue as they have in the past. The opposition has been made aware that Santos intends to change some of its investment focus from the Cooper Basin to its coal seam methane assets in Queensland. My questions is: has the minister or the Premier received any advice from Santos in relation to the change in investment focus from the Cooper Basin to the coal seam methane assets in Queensland, and how many jobs are at risk in South Australia because of this change of investment focus by Santos?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (14:31): Let me deal with the implication that is in the question that, somehow or other, the preservation of the share ownership cap might have given some control over where Santos focuses its activities. The answer is that, of course, it did not, and I made that clear during debate. The fact is that Santos could have established—and, indeed, had in the past established—a significant part of its operations in Queensland. With the depletion of gas resources within the Cooper Basin and Santos' acquisition of significant assets within Queensland, particularly in the coal seam methane area, that will inevitably be a growing focus of its activities and, inevitably, Santos will shift its staff because of that focus. However, that is more to do with the refocusing of activities on resources within that state, rather than anything at all to do with its share ownership cap, which is entirely irrelevant to that.

Santos has made it public for some time now that it will be moving into that area, and there is nothing very surprising about that. Obviously, Santos as a company is continuing to grow but, as far as I am aware, Santos will continue to maintain its head office in and its commitment to South Australia. However, if the growth of its activities is in another part of the country or, indeed, the world, inevitably, Santos will employ people in those areas.

The Hon. D.W. Ridgway interjecting:

The Hon. P. HOLLOWAY: How can any job be at risk? If the growth of an area is in Queensland—if that is where the coal seam gas and the expanding activities are located—Santos will employ people there. It is inevitable that the focus of Santos' activities will be there. However, my understanding is that those head office functions will remain here, and I am certainly not aware of any indication whatsoever that Santos intends to change those traditional activities located in this state. Of course, as the focus of its gas producing activities is in those coal seam methane assets in Queensland, it is inevitable the jobs will be focused there.

The Hon. D.W. Ridgway interjecting:

The Hon. P. HOLLOWAY: Well, of course, one can never say that. I am talking about the head office functions. But, obviously, those people on the ground, if they are doing their work in Queensland, it makes sense that they live where the work is.

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