Extract from Hansard [ASSEMBLY — Tuesday, 10 June 2014] p3585a-3597a Speaker; Mr Mark McGowan; Mr Ben Wyatt; Mr Colin Barnett; Acting Speaker; Ms Rita Saffioti; Mr John Day; Mr Terry Waldron; Mr Bill Johnston; Mr Peter Watson INFRASTRUCTURE PROJECTS — GOVERNMENT MANAGEMENT Matter of Public Interest THE SPEAKER (Mr M.W. Sutherland): Today I received within the prescribed time a letter from the Leader of the Opposition in the following terms — I wish to raise the following as a matter of public interest today. That this house condemns the Barnett government for mishandling projects thereby exposing taxpayers to millions of dollars in extra compensation and damages, including the new Perth Stadium, the nib Stadium redevelopment, Elizabeth Quay and the Balmoral South Iron Ore Project. The matter appears to be in order. [At least five members rose in their places.] The SPEAKER: The matter can proceed, but before it does, I call to order for the first time the members for Perth and Carine. MR M. McGOWAN (Rockingham — Leader of the Opposition) [3.38 pm]: I move the motion. This is an important subject matter because we are dealing with the appropriate and proper handling of public money. We all know that every single government in the history of this state has built projects and provided approvals; indeed, that is what governments do. It is standard practice on the part of governments in Western Australia. All the public facilities around this state are testament to that, as is every single mining and construction project in Western Australia over the last 180 years or so. It is very important that, as much as possible, public money is not wasted. It is also very important that these projects have smooth and transparent approvals processes. Any person in Western Australia who wishes to make an investment and receive an approval should have the right to the understanding that the processes are transparent and fair—transparent and fair for all applicants—and that approvals are not based on favouritism or prejudice. That is the way the business environment in this state should operate. However, we have seen examples historically of it not operating that way. We do not wish to see those incidents repeated in Western Australia. This motion is not about blowouts. Indeed, if it were about blowouts, we could talk about the $300 million blowout of Fiona Stanley Hospital, the $200 million blowout of Perth Children’s Hospital, the $3 billion worth of blowouts identified by the Auditor General or other financial disasters, such as the loss of goods and services tax revenue because of the hopeless deal that was signed in 1999 that has so penalised this state and that will continue to penalise it into the future. I could talk about all those things, and we have talked about all those things in the past. This motion is about the failure of process and lack of transparency and prejudice in decision-making. Today it was revealed that, as a consequence of the budget, a $4.7 million payment will be made to Golfwest not to operate a golf course. The Premier told us that there would be no additional cost for government land in relation to the stadium. A few weeks ago it was revealed that Allia Venue Management, the company operating nib Stadium, was being paid in excess of $8 million not to operate a stadium. It does not have to worry about all the costs and expenses and aggravation of operating a facility; it gets paid not to do it! We saw the Grand Palace Chinese restaurant paid not to make fried rice, sweet and sour pork or Szechuan beef. A total of $7.25 million was given to this small proprietary limited company so it cannot operate a Chinese restaurant and not have all the aggravation from this government in the future. We have seen Serco, the government’s favourite company, paid $118 million to operate a hospital without patients. If a company wants to do business in Western Australia under this government, it is far better off not doing that business and getting paid for it by the government because it gets a far better deal. That is how it works in Western Australia today. Companies do not have to do the work; they just collect the money under this government. There are four examples of it. We saw the $30 million discount for land purchased at Crown Perth. Crown got a $30 million discount without any justification provided to this Parliament. We saw $30 million worth of land at Elizabeth Quay given away to Ritz-Carlton a few weeks ago. Mr J.H.D. Day: What’s your evidence for that? Mr M. McGOWAN: The minister said that. He gave the land to that company. We now see $1.6 million worth of land on the Albany foreshore being given away. We saw a $15 million royalty holiday given to Karara Mining to take our iron ore and not pay a fee for it. Then we saw Mr Sage, a well-known donor to the government, receive a significant benefit, for which no justification has been provided. This government has given away more than $200 million of taxpayers’ money without transparency, in my view, and often without a public benefit. We might argue about the land at Elizabeth Quay, saying that a hotel will be built there. Hotels are being built around Western Australia at the moment — [1] Extract from Hansard [ASSEMBLY — Tuesday, 10 June 2014] p3585a-3597a Speaker; Mr Mark McGowan; Mr Ben Wyatt; Mr Colin Barnett; Acting Speaker; Ms Rita Saffioti; Mr John Day; Mr Terry Waldron; Mr Bill Johnston; Mr Peter Watson Mr C.J. Barnett: Not for 25 years. Mr M. McGOWAN: I opened one at Crown Perth in 2005. The Westin hotels chain is establishing hotels in Western Australia but it has to buy the land. If a business happens to be favoured, it gets the land for nothing. That is what we are saying. Where is the transparency? Where is the process? Why were others not able to compete? That brings me to the issue of the moment, which is the Balmoral South iron ore mine. How can it be that Western Australian taxpayers are now liable for damages to Mr Clive Palmer? Mr C.J. Barnett: No, they’re not. Mr M. McGOWAN: I hear the Premier say that they are not. He always mutters these things across the chamber. I want to quote page 50 of the arbitration judgement of a former High Court judge, Mr Michael McHugh, one of the most respected jurists in the country. His judgement, which is binding on the state, states — The failure of the Minister to give a decision within that time means that he is in breach of the State Agreement and is liable in damages for any damage that the Applicants may have suffered as the result of the breach. That is what he had to say in his judgement, which emerged last Friday. It is as clear as crystal that the state government will be liable in damages because of the failure of the minister to make a decision. The Minister for State Development, the Premier, may not like Mr Palmer. He may have a personal vendetta against him or a personal dislike for him. He has expressed it in this place before. He has expressed it publicly. That may be the case, and many people may agree with him, but that is no reason to prejudice the interests of the people of Western Australia in his decision-making. Today he said in question time that he rejected the application. There was no capacity for him to do that under the state agreement act. Mr McHugh, in his judgement, has made that plain. Thereby, the taxpayers of Western Australia are liable in damages as a consequence. The Premier might have that personal view of Mr Palmer. Admittedly, not so long ago—in 2010—Mr Palmer was over here addressing The 500 Club fundraising events for the Liberal Party. He was introduced by Mr Norman Moore at those events with some absolutely laudatory commentary about Mr Palmer. Mr Palmer offered to fly National Party members around the state campaigning. All the documents are here. I have the photographs of the special, very close relationship between the Liberal and National Parties and Mr Palmer. Admittedly, at that point he was saying that I, the humble member for Rockingham, should be expelled from the Parliament of Western Australia. In fact, if I recall correctly, he called me an idiot, and I think he put out a press release to that effect. The Premier asks why I am doing the bidding of Clive Palmer and says that I have this very special relationship with Clive Palmer. I have never even seen the bloke. I have never spoken to him. I have seen him on the television. I have seen him emerging from his vehicles. That is the extent of it, apart from him demanding that I be expelled from the Western Australian Parliament. If the Premier thinks that is a close relationship, maybe he should reconsider that line of attack and maybe he should answer the questions. What is the liability for Western Australia? Will he table the advice that he received, which he claimed said that he rejected the application? We have heard the Premier say these things before, as he might recall. We have had debates in this place about these things in which the Premier has had to apologise to this house for misleading it.