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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2012-05-17 Daily Xml
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OLYMPIC DAM EXPANSION

The Hon. T.J. STEPHENS (15:17): I seek leave to make a brief explanation before asking the Minister for Regional Development questions about the Olympic Dam expansion proposal.

Leave granted.

The Hon. T.J. STEPHENS: It was announced yesterday that BHP Billiton would be cutting back $80 billion of major projects over the next five years, putting the future Olympic Dam expansion in jeopardy. BHP CEO Marius Kloppers indicated this was due to the current financial and economic climate globally, while also acknowledging that Australia was one of the higher cost countries.

While we will never be able to compete with developing countries and their wage costs, the Olympic Dam project is competing for funds with the potash project in Canada, iron ore mining in Western Australia and coal projects in Queensland. The Premier said he is confident that BHP would approve the expansion. My questions are:

1. What information does the government have indicating that the Olympic Dam project will be approved by the end of the year?

2. Does this announcement put the long-term viability of regional centres in South Australia in danger?

3. Given that we are the highest taxed state in the commonwealth and BHP has indicated that cost efficiencies are a major factor in making the decision, will the government commit to cutting taxes to ensure that the project goes ahead?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for Tourism, Minister for the Status of Women) (15:19): I thank the honourable member for his questions. I have seen comments by the Premier that indicate that he is confident that the project will go ahead. Obviously, we are in a very difficult financial climate at present, but the government is confident that it will go ahead. The task force involved in discussions and deliberations around Olympic Dam comes under the Treasurer's jurisdiction, but I am happy to refer those specific questions to that minister and bring back a response.

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