Gillman contract reveals Government claims on jobs and oil and gas hub are untrue

Shadow Treasurer Rob Lucas said today the release of the controversial Gillman deal contract had now revealed critical public assurances by the Government about jobs and the oil and gas hub were untrue.

The Government’s defence for its Gillman deal has been primarily the 6000 jobs it claims will come from a proposed oil and gas hub at Gillman.

On numerous occasions the Government has claimed that ACP were contractually bound to proceed with an oil and gas hub.

On 28 January Mr Koutsantonis was challenged on ABC radio as to whether ACP were required to proceed with an oil and gas hub in Stage 2 of the Gillman project:

Bevan:           “…”will it be used for an oil and gas transport hub in Stage 2, you don’t know..”

Koutsantonis: “…well David I am explaining to you but you’re not interested in the answer, you’re interested in verballing me.”

Bevan:            “… will it happen in Stage 2?”

Koutsantonis: “Well David if it doesn’t happen in Stage 2 they are in breach of the                               contract.”

Also Mr Rau on 15 January is reported in The Advertiser:

“Mr Rau said there were contractual obligations to establish an oil and gas hub contained within the agreement but not for the first parcel of land.”

“However, a detailed analysis of the contract reveals there is no contractual requirement for ACP to proceed with an oil and gas hub,” said Mr Lucas.

“In fact the contract reference to an oil and gas hub only states in Annexure A – Project Objectives that: “… ACP seeks to achieve the following objectives for this Project.”

“The Cabinet submission also makes it clear that there is no contractual agreement for ACP if it proceeds with Stage 1 of the project to proceed beyond that to Stages 2 and 3 of the project.”

Recommendation 12 of the Cabinet submission states:

12. Note that if ACP does not exercise the second or third exercisable option, the State (through Renewal SA) may be required to undertake certain rectification works…

“This is obviously critical because the Government has argued the oil and gas hub is definitely not a contractual requirement for Stage 1 of the project.

“These documents make it absolutely clear, contrary to the Government’s claims, there is no contractual requirement for ACP to proceed with an oil and gas hub. ACP has only agreed to ‘seek to achieve’ an oil and gas hub.

“The Weatherill Government stands condemned for misleading people with their claims they had contractually bound ACP to provide an oil and gas hub at Gillman.

“These documents blow out of the water the Government’s justification for not going to a competitive tender for their Gillman deal.

“Mr Koutsantonis and Mr Rau must now explain publicly why they made incorrect and untrue claims about the oil and gas hub and the Gillman contract.”