Scott Ludlam (WA, Australian Greens) Share this | Hansard source

asked the Minister representing the Minister for Trade, upon notice, on 13 December 2010:

With reference to the Export Finance Insurance and Insurance Corporation (EFIC), AusAID and the liquefied natural gas project in Papua New Guinea (PNG LNG):

(1) What is AusAID's role in the PNG LNG project.

(2) Does AusAID have a monitoring and advisory role; if so, how many reports has AusAID provided on PNG LNG and what was the nature of those reports.

(3) Given that in the past 6 months there has been more conflict in PNG in relation to this project, with the most recently reported attacks involving high-powered weapons occurring on Friday, 24 September 2010 at the site of an Australian contractor:

(a) can the Minister comment on reports in the PNG daily newspaper, The National, as well as local civil society groups, advising that the violence is a result of uprising of leaders from landowner groups within the project area who believe they have been excluded from the benefit sharing agreements; and

(b) is the Minister aware that in July 2010 a dispute between warring factions from Moran, a lucrative site in the Southern Highlands province where part of the PNG LNG project is located, erupted in a gun battle at PNG's main domestic airport, with the gunmen and a number of bystanders wounded.

(4) Can details be provided on the level of violence and security issues relating to this project over the past 12 months.

(5) Is any review process currently being employed by EFIC (or the Australian Government) to consider the escalation in security threats and project associated violence; if so, can details of the review be provided.

(6) Given that on 12 November 2009 The National reported that Australia is assisting the PNG Government with the establishment and administration of the PNG LNG sovereign wealth fund and that AusAID's chief economist would assist with economic modelling for the fund and provide guidelines for ideal use of government revenues: Can details be provided outlining:

(a) the guidelines for ideal use of the revenue entering the sovereign wealth fund; and

(b) the precise assistance or involvement the Australian Government has in the establishment of the sovereign wealth fund for PNG LNG revenues.

(7) Given that a security assessment for the LNG PNG project was completed by Control Risk Australia Pacific, which concluded that security risks will be manageable if their recommendations are implemented, can an outline of the recommendations be provided together with advice as to whether these recommendations have been implemented to date.

(8) In a recent ANZ report, the bank's Chief Economist for Asia stated that the revenue boom from the PNG LNG project is a significant opportunity, but he warned that it will only lift the living standards for people of PNG if it is prudently managed, citing Botswana and Chile as examples of prudent management of resource revenues, while citing Nigeria as the opposite: Given this analysis:

(a) what evidence does EFIC and the Minister have that PNG has institutions in place to 'prudently manage' the revenue generated from the PNG LNG project; and

(b) is the Minister concerned that PNG, like Nigeria, has seeds of conflict already showing.

(9) Can an outline be provided of what the Australian Government will do if conflict in PNG escalates further.

(10) Noting the warning in the ANZ and D'Appolonia reports which cite that 'fair and transparent distribution of project benefits to PNG stakeholders is a critical path-item', why did EFIC or the Australian Government not make the EFIC project finance conditional on the adoption by the PNG Government of the Extractive Industries Transparency Initiative (EITI).

(11) In relation to the relocation of 416 households during Phase 1 of the LNG PNG project, have:

(a) project sponsors complied with IFC Performance Standards; and

(b) resettlement action plans been disclosed to all communities.

(12) Given that under section 8F of the International Monetary Agreements Act 1947 (the Act), the Joint Standing Committee on Foreign Affairs, Defence and Trade is required to report on international loans made under that Act and that in 2001, the Australian Government produced a National Interest Statement to be considered by the committee for an Australian Government loan of AU$133.2 million to PNG:

(a) why is an Australian export finance loan to ExxonMobil and other PNG LNG project proponents, valued at more than $500 million dollars, not subject to a National Interest Statement and review by the committee; and

(b) why was the Act in this instance not applicable.