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Legislative Council - Fifty-Third Parliament, First Session (53-1)
2014-11-19 Daily Xml
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Oil and Gas Sector

The Hon. R.I. LUCAS (15:40): Mr President, it will not surprise you and other members to know that ever since the member for West Torrens refused to pay up on a $50 gambling debt back in 2001 I have not held the member in high regard. I have therefore been intrigued to note the extraordinary response from the member for West Torrens to a series of reasonable questions being put by members of the media and parliament on an exploration licence issue. This issue first started publicly when that well-regarded reporter Sarah Martin from The Australian wrote a story on the 10 September this year, and she said:

South Australia's Labor government awarded a lucrative petroleum licence to a company with no experience in the oil and gas sector and that has since been found to have misled shareholders in a takeover bid.

In April 2011, Mining Minister Tom Koutsantonis said Ambassador Exploration, a company wholly owned by Melbourne-based property developer Kleo Hatziladas, had secured the licence in the northern Cooper Basin.

Ambassador won the licence by 'guaranteeing' it would spend over $33.5 million to drill eight wells over a five-year period. To date, it has not drilled any wells in the 2400sq km licence area.

Further on, she states:

In its prospectus released for a subsequent listing on the ASX, the company said it had 'no operating history in the oil and gas industry and no meaningful historical financial information or track record'. It warned Ambassador had 'no petroleum reserves, production licence, commercial production, no prior or current cashflow, revenues or profits.

Following up from that in parliament on 12 November, the member for Stuart raised some reasonable questions, asking:

…what due diligence was done by the government prior to issuing Ambassador their exploration licence in the Cooper Basin, given the company had no operating history in the oil and gas industry?

The Hon. Tom Koutsantonis said:

That is an offensive question. If the member has an accusation to make, he should make it and then he should walk outside and make it again.

He then went on with similarly intemperate language. Following on from that, on 13 November the member for Stuart again asked a reasonable question:

Can the minister advise if relevant prior operating history is a prerequisite to successfully tender for a petroleum exploration licence?

The Hon. Mr Koutsantonis' response was:

Mr Speaker, this is a pretty grubby question by the member for Stuart, trying to imply—

All the question asked was whether relevant prior operating history was a prerequisite to successfully tender. In looking at the extraordinary response from the member for West Torrens, I am reminded that his behaviour is somewhat akin to that of the schoolyard bully. The member for West Torrens loves to dish out the tough stuff, but he cannot take any little bit of pressure at all. As soon as a little bit of pressure is turned up, he squeals like a stuck pig.

The Hon. K.J. Maher interjecting:

The Hon. R.I. LUCAS: Mr President, the member for West Torrens, for example—

The PRESIDENT: The Hon. Mr Maher is called to order.

The Hon. R.I. LUCAS: —straight after the budget, refused to debate either the Leader of the Opposition or the shadow treasurer on the budget; he refused to debate on FIVEaa and refused to debate from a number of other media outlets because he was squibbing or too scared to front up to defending the budget either the Leader of the Opposition or to the shadow treasurer. These are just reasonable questions, and just because the member for West Torrens squeals like a stuck pig does not mean that the member for Stuart, or indeed hardworking members of the media, are going to be frightened off from asking reasonable questions.

If, as Sarah Martin has asserted, that in winning the licence this particular company guaranteed it would spend $33.5 million to drill eight wells over a five-year period, and she asserts that when she wrote the story three years later it had not drilled any wells in the 2,400 square kilometre licence area, if that information is correct, and the member for West Torrens is in a position to provide information on that, then they are not unreasonable questions.

The member for West Torrens is not going to get away with, as I said, squealing like a stuck pig and saying, 'It is a grubby question,' and 'Go outside and ask the question'. These are reasonable questions being asked outside the parliament by journalists and inside the parliament by members of parliament. People are not going to be diverted, as I said, by the member for West Torrens trying to play the 'I'm hurt and offended that you are asking unreasonable questions in relation to the issue.'

As I said, the member for West Torrens has to toughen up a bit. He is a little bit precious in these issues. A little bit of heat is turned up on him and he squeals like a stuck pig and runs away from any sort of debate and answering questions. He needs to toughen up.

Time expired.

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