Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Hansard source

The Minister for Trade and the Minister for Foreign Affairs has provided the following answer to the honourable senator's question:

(1) No. EFIC did not commission any reports from the Control Risk Asia Pacific Group. However, the Control Risk Asia Pacific Group was separately engaged by Esso Australia to prepare two reports. The first report was for the lenders to the PNG LNG project with respect to security issues relating to the PNG LNG project. EFIC received the final version of this report in December 2009. The second was a report for the sponsors on security matters. EFIC has not received or reviewed the sponsors' report.

(2) No, Control Risk Pacific Asia staff have not accompanied EFIC representatives to any meetings in PNG.

(3) It is not appropriate to comment on Cabinet processes.

(4) EFIC has not provided DFAT with the lenders' report from Control Risk Asia Pacific Group. The lenders' report formed one part of EFIC's comprehensive due diligence process in which EFIC received independent advice on, or verification of, a number of key risk factors. The lenders' report, amongst other due diligence material, enabled EFIC to provide a detailed credit assessment to DFAT in respect of the proposed NIA transaction.

(5) No.

(6) The following answer has been provided by the Minister for Foreign Affairs:

The construction and production phases of the PNG LNG Project will not affect the nature and priorities of Australia's ODA to PNG. In accordance with jointly agreed priorities, the aid program to PNG will focus assistance on education and health, including HIV/AIDS, and maintain support for law and justice and transport. Australia is providing advice to the PNG Government on how it may manage the governance impacts of the LNG project and to establish mechanisms to manage anticipated revenues for the benefit of the people. This support is being managed separately from the aid program.

(7) PNG law governs which landowners, local and provincial governments are entitled to benefit from the PNG LNG project.

(8) Negotiations with local landowners are principally a matter for the PNG Government, landowner associations and LNG project partners.

(9) Negotiations with local landowners are principally a matter for the PNG Government, landowner associations and LNG project partners. Neither EFIC nor the Australian Government has had any communication with the PNG Government on those negotiations.

(10) No. The Kokopo Umbrella Benefits Sharing Agreement development forum participants comprised mainly PNG government representatives (at national, provincial and local levels) and PNG landowners. There were no Australian Government representatives at the forum.

(11) It would not be feasible to provide a list of meetings attended by the High Commissioner in relation to the PNG LNG Project because of the large number of meetings in which it was discussed. Given the significance of the project to PNG, the project is discussed regularly by the Australian High Commission.

(12) It is not appropriate for an opinion on security and investment risk to be provided.

(13) The Australian government cannot exert control over security risks in third countries.