Nola Marino (Forrest, Liberal Party) Share this | Link to this | Hansard source

I would like to talk on the inquiry by the Senate Standing Committee on Economics into the economic impact of the gas crisis in Western Australia. The economic impact includes but will not be limited to the extent of losses faced by business and industry failing to meet production targets due to the lack of gas supplies; the nature of contractual arrangements during the gas crisis and their status since the resumption of gas supplies from Varanus Island. The effects on subcontractors, small businesses, individuals and workers are all part of this process. The inquiry will also report on the government response to the Western Australian gas crisis, including but not limited to the adequacy of the crisis management response and the justification for any refusals to release relevant facts and documents publicly.

There has now been a change of government in Western Australia. I want to strongly encourage those businesses and individuals in the south-west and in the rest of the state that previously may have been concerned about putting in a submission or appearing before the Senate economics committee because of potential concerns or issues relating to the previous state Labor government to do so. There is a capacity to provide confidential submissions and conduct meetings in camera. More particularly, given that we now have a new government in Western Australia, I strongly urge these businesses, contractors and individuals to be confident in providing submissions and meeting with the Senate inquiry members when they come to Bunbury, in my electorate of Forrest, in the south-west.

The explosion at Varanus Island stripped 30 per cent of Western Australia’s gas supply. However, over 40 per cent of that gas supply is used by a diverse range of small, medium and large industries and business enterprises in my electorate of Forrest. These industries were forced to secure alternative energy supplies at premium prices that were three to five times the normal price. They had to cut back their production schedules or, in extreme cases, close their doors for the interim, stand down contractors and put in staff management processes. Larger businesses had the financial capacity to pay premium prices for alternative energy suppliers. However, small to medium-sized companies were very hard-hit.

The WA Chamber of Commerce and Industry has estimated that the cost to the WA economy is at least $2.4 billion and may well be $6.7 billion by the time full gas supplies are returned in December. A survey by the Chamber of Minerals and Energy identified that 25 per cent of companies did not have the capacity to substitute diesel for gas and that 40 per cent of the companies had to alter staffing arrangements as a consequence of the shortage. Again, I urge all businesses, contractors and individuals to provide submissions and meet the Senate inquiry members when they come to Bunbury, in my electorate.