FOR PRESS: PM. NO. 104/ 1972
NATURAL GAS PIPELINE
Statement by the Prime Minister, the Rt. Hon.
William McMahon, M. P.
The Prime Minister announced today that he had been
informed that substantial orders are being placed in Australia by
East-Australian Pipeline Corporation Limited on account of
Australian Gas Light Company for steel pipe to be used in the
construction the main trunk and lateral lines for the Gipgealpa/
Sydney natural gas pipeline.
Negotiations had been proceeding for some time between
East-Australian Pipeline Corporation Limited and local manufacturers
on the question of whether these manufacturers could meet the
required specifications for the steel pipe required for the main
route. At the request of all parties the Department of Customs
and Excise was involved in these negotiations.
Following these negotiations and recent detailed
investigations, East-Australian Pipeline Corporation is now satisfied
that the Australian steel producers and pipe manufacturers are
capable of meeting the technical specifications required for the
pipe which is to be purchased from them.
The Prime r'' ii. ster went. on to say that
approximately 80 miles of the 34" nmin trunk line will be
manufactured in Australia by Steel ains Limited from X63 steel
plate to be produced in Australia. This is the total amount tendered
for by the Company. Tubemakers of Australia Limited also has the
basic capacity to produce steel pipe of 34" outer diameter and had
been offered a contract for approximately 160 miles of the main
trunk line the tent of the Company's capacity. I
However, East-Australian Pipeline Corporation has also
offered a cc^ tn: t to tubemakers for the su!] y. ly of ooroximately
170 miles of steel pi-e of 20/ 22" outer diameter required for the
gas distribution system and main lateral connections to other major
centres in New South Wales. / 2
The Company has advised that is is not possible for it to
produce both lines in the time required and it has elected to
manufacture the 20/ 22" line. The high strength steel plate for
that contract will be supp~ lied from Australian ? roduction.
The Prime Minister stated that he had also been advised
that orders for the balance of the lateral and distribution lines
will be placed in Aiustralia.
All contracts -those let in Australia and in Japan
provide the same guarantees as to warranty and performance to
specification. The Prime Minister has been advised that because of the
size of this contract and the delivery requirements it is not
possible for one pipe manufacturer to supply the bulk of the
contract which must be imported. The Australian Gas Light Company
therefore proposes to impoort the bulk of the pipeline from three
Japanese manufacturers.
The Department of Customs and Excise has been examining an
application for by-law admission of the steel pipe which had to
be imported from Japan. By-law admission of imported goods
subject to protective duties is only given if suitably equivalent
goods are not reasonably available in Australia.
Since the Australian Gas Light Company is obtaining in
Australia all the pipe that can be made in this country within the
required delivery period the Minister for Customs and Excise has
approved duty free admission of the necessary imports.
The Prime Minister commented that the matter had been
resolved very successfully.
The decision by the Australian Gas Light Company meant
that Australian manufacturers and workers would be engaged in the
production of as much of the pipe line as can be produced in
Australia. In addition of course, Australians would be responsible
for laying of the lines, at the same time the bulk of the pipe
would be imported from Japan without the need to increase costs by
attracting the normal duties.
This imvortant Australian project would now go ahead
with advantage to all parties concerned, manufacturers,
unions and consumers.
CANBERRA, 22 November, 1972