PM: I'll begin by saying just how delighted I am that we now have reports that Tim Holding has been found alive and well. This is fantastic news. Our hearts have been in our mouths as we've waited for news this last couple of days. It's been an extraordinary toll on his family, and his friends, his partner, and this is just wonderful news.
I don't have the full details yet as to how he's been found or who has contributed to this, but can I just say on behalf of all of us how thankful we are to the rescuers who've been out there for the last two days finding Tim. And I am so pleased that he's going to be returned to us. So congratulations to the rescuers, and it's going to be fantastic to see Tim back in harness very soon.
We're happy today to be out here on Barrow Island, Mark Arbib, the Employment Minister and myself, and of course Roy here from Chevron, and also with the other joint venture partners as well. This is a huge project for Australia. This is a huge project for Western Australia. Gorgon represents a massive injection out into the Australian economy, which means jobs, which means growth, which means new opportunities for Australia.
When it comes to the Australian Government's involvement in this, there've been three sets of measures that we've had to be associated with in particular. One was our decision, with the West Australian Government, to commit to the joint indemnification for the CO2 sequestration process. Second has been the finalisation of the necessary environmental assessments by the Environment Minister. And the third has been the issuing of the necessary production licences and other leases which are necessary for the project to proceed.
As you know, some time ago, the WA Government and the Australian Government reached agreement on indemnification of the project. That part is done. The second, which goes to the environmental assessments, Minister Garrett has already made his determination. The third, which is the issuing of the relevant production licences and other leases has been the remaining piece of work for us to do.
I'm pleased to announce today that Governments have decided to offer to the Gorgon joint venture partners both retention leases and licences for this project to proceed. So today, confirming our decision as Governments to offer to the joint venture partners these critical leases for this project to become a reality.
This is, therefore, an important milestone in bringing this project into reality. As I've been taken around the site today by our friends from Chevron, and also in discussions with the other joint venture partners, Exxon and Shell, it's quite plain that this is a massive project. It's not just the offshore drilling, it's the piping onshore, it's the CO2 sequestration, it's the LNG plant, and of course it's the export facility as well - a massive, $50 billion project, and one with the potential to realise for Australia, over time, some $300 billion worth of exports. This is huge, by any measure, and therefore, this is a good day. This is another good day for the Australian economy, for the building of jobs, and for the long-term development of Australia's resource and energy sector.
The second thing I'd like to say, and I'll ask the Employment Minister Mark Arbib to add to this in a minute, is that, not only today are we offering licences for this project to proceed, this $50 billion project to proceed, we're also indicating a course of action we intend to embark on to plan properly the needs for employment and skilled employment on this and related resource projects. If you add them together, the resource projects across Australia which have currently been approved or are in the pipeline add up to a massive demand for skilled labour in the period ahead. It's critical that Australia learns from the experience of the last decade or so, when a failure to plan for infrastructure and skills in fact contributed to inflationary pressures in the economy.
The Reserve Bank, for example, issued some 20 separate warnings on the need to take action in this critical area. Therefore, what the Australian Government has decided to do is to create a Major Project Employment Coordinator, and also, what we'll be doing, is creating a National Resource Sector Employment Taskforce. This will not just be relevant to the needs as they emerge for this massive project at Gorgon, but for related resource projects across WA, across Queensland, and across the rest of the country.
We have to learn from some of the mistakes made in the past, we have to work together to productively plan for the skilled workforce that will be needed for this project, and for those like it. Here at Gorgon alone, I'm advised that the total number of construction jobs will be something in the order of 6,000 - am I right? 6-10,000. It grows by the day. Therefore, add that together with other massive resource projects, we have a huge challenge on our hands.
So in summary, this is a good day for the Australian economy, it's a good day for the Western Australian economy, as we offer the joint venture partners these leases to get this $50 billion project going for Australia.
I might ask the Employment Minister now to add to how these entities will operate.
MINISTER ARBIB: Thanks Prime Minister, and thank you to Ron and Chevron for the opportunity to be here, because it's hard to fully understand how big a project this is and the effect it's going to have on employment and unemployment until you actually come out here. So for me, it's been eye-opening. The Prime Minister has talked about establishing a National Resource Taskforce, which is definitely needed. When you look across the country, there is something like 80 projects, 80 major projects in the natural resource sector which we need to plan for for the future - up to something like 70,000 jobs across the country. 60% of those jobs right here in Western Australia.
That is going to take a great deal of time, a great deal of preparation, and we're going to need a plan to deal with it, and that's what this Taskforce will do - help coordinate between the providers, between industry, between training, between the State Government, the Federal Government, to ensure that we're meeting the skills requirement, and also the labour requirements of projects like this at Gorgon. Also, because there's a great deal of detailed preparation work, we're also putting in place a Major Projects Coordinator, someone who can get on the ground, work with the company, work with companies across the country, and ensure that the Government, industry, plus training providers are meeting the needs of the projects.
It's extremely useful, it's extremely necessary, and it's going to allow us to deal with capacity shortages that may come our way in the next couple of years. So it's a good day, as the Prime Minister said, and I'm happy to be here.
PM: Roy, would you like to add?
KRZYWOSINSKI: Yes, thank you. I think the first thing I'd like to do is just express my appreciation to Prime Minister Rudd, and to Minister Arbib, for taking time out of their busy schedule to come visit us on Barrow Island, and see first-hand what we have to offer here at Barrow-
PM: And to wear colourful shirts.
KRZYWOSINSKI: And to wear colourful shirts. Not only in terms of what Barrow Island has to offer, but in terms of learning a little bit more about the Gorgon project. And one of the things that we're quite proud of here at Chevron, as well as our partners, is the fact that we've been on Barrow Island for 40 years, and you had a chance today to see how an oilfield actually operates. It's been operating for over 40 years, and I think this just demonstrates, Barrow Island just demonstrates the fact that we, as an oilfield operator, oil and gas producer, can operate consistent, coherently with high environmental standards and environmental conditions, and that industry and the environment can co-exist. I think Barrow Island is a shining example of that.
So we appreciate, once again, your time for coming out. And also, I'd like to just welcome the announcement, the Prime Minister's announcement today in terms of extending the production licence and the retention licence offers for the Gorgon project. We believe this just takes us one more step closer to project sanction, and the next steps, as everybody was wondering, we need to get our internal approvals, and then we need to finalise the development proposals which are currently being worked very, very hard, and we think it's just a matter of weeks in which we're actually going to be in a position to take project sanction and final investment decisions.
So, we really appreciate the support of Government at all levels. You guys have been very supportive, and the coordinations, and we'd just like to thank you.
PM: Good, well done Roy, thank you. Just as I take your questions, in summary, a $50 billion project. Over time, some $40 billion to revenues, both Commonwealth and state. $300 billion worth of potential export income. 6 to 10,000 jobs for this project in construction, and also the roll on consequences for the rest of the economy, including the purchasing of so much of the kit and equipment that will be used in the construction of this project and in its operation.
Over to you, folks.
JOURNALIST: What's the duration of the licences?
PM: Sorry about that?
JOURNALIST: What's the duration of licences?
PM: Well, these are all specified in the individual contractual arrangements with the joint venture partners. We'll hear a further, detailed statement on all of that, and the responses which Roy has referred to from the JV partners, we hope within weeks. All of this will be made absolute clear and transparent at the time.
JOURNALIST: Prime Minister, is gas the new coal for Australia?
PM: Well, I'm from the great state of Queensland, where we do have a bit of coal, so let me say we believe that there is room for both these arms of Australian energy exports in the future. Of course, a couple of things are necessary for that. One is that we're doing the right thing in terms of climate change, hence why sequestration is so important here, and also why we've pioneered this Global Carbon Capture and Storage Institute- coal-fired electricity generation, as well. That's the first thing.
The second thing is to have good joint venture partners as we have here with Exxon, with Shell, with Chevron, to get these huge projects going. Can I say, therefore, for the future and energy-hungry world, this will be important. Renewable energies will be important, energy efficiency will be important - all three arms actually underpin a good, sustainable energy and climate change strategy for the future.
JOURNALIST: Were you impressed with what you (inaudible) geo-sequestration methods?
PM: It was good to have a technical briefing on how it would operate here. I appreciate very much the efforts which have been described to me by Chevron about how it will actually be done, in terms of seismic measurements prior to sequestration of the proposed reservoir, seismic measurements during the process of sequestration, and seismic measurements subsequent to the completion of the task as well.
I think the thoroughness which has been evidenced in the approach to this and the degree of science which has gone to the identification of the sequestration site reflects well on the companies. We, of course, in Government, have been taking the advice of our technical officials.
Of course, sequestration of this type is not absolutely new in world. Roy and I have been talking about a parallel exercise in the Slackner field in the North Sea, which is run by Norwegian Statoil. This will be very large, but there are some precedents, albeit at a different scale, elsewhere in the world.
JOURNALIST: Has the economic value of the project been put ahead of the environmental needs?
PM: The key thing with this project, and the way in which the Australian Government does business, is to get the balance between the economy and the environment right. We believe that through the thorough investigations undertaken by the Environment Minister, Peter Garrett, and more broadly, with the State Government of Western Australia that we've got the balance right.
We are passionate about the future of the economy, the resource sector, because it provides for jobs for working families across our country. Similarly, we're equally passionate about our national and global responsibilities on climate change. Such a large-scale sequestration project here is one important part of the overall global response to climate change as well.
JOURNALIST: Can I ask a question about (inaudible)
PM: Only if we approve of them. Off you go.
JOURNALIST: John Della Bosca has resigned over a sex scandal, do you have a message for the New South Wales Government?
PM: Look, I've seen those reports, and they really are a matter for Mr Della Bosca and his family. I don't propose to make any comment at all on his and their private life.
JOURNALIST: It seems though, that the New South Wales Government is just rocked by another scandal, though. Do you agree?
PM: Well, these are difficult matters, but in terms of the detail of it, I would respect very much the privacy of Mr Della Bosca and his family in what is obviously a sensitive time.
JOURNALIST: You're not concerned at all about the ALP's image in NSW dropping to new lows as a result?
PM: As I said, this is a delicate and sensitive matter, but because of its intense family nature, I wouldn't propose to comment on the details of it, and this should be a private matter for Mr Della Bosca, his wife and his family.
JOURNALIST: (inaudible)
PM: These are private matters for Mr Della Bosca and his family, and I don't see any point in providing lectures to anybody in these very difficult personal circumstances and it's a matter for Mr Della Bosca.
JOURNALIST: On another matter, the NATO Chief is calling for a bigger troop presence in Afghanistan. Could you rule out sending more troops?
PM: Well, our approach to Afghanistan has always been that we want to ensure that our mission in Oruzgan province is concluded. What's our mission in Oruzgan province? To train up an Afghan national army brigade made up of six battalions so that we can in turn hand security responsibilities over to the Afghan Government. That's the task and the mission we've set for ourselves in Oruzgan. We think it's a taxing and difficult task. We believe we've got our deployments right, and that's the strategy that we'll be pursuing. We continue to be in dialogue with our American partners and our NATO partners about the future, but we believe our mission and our deployment there is about right.
JOURNALIST: Okay just finally, there's been a recommendation in the health reform paper, apparently, about alcohol subsidies and (inaudible)
PM: Look, these matters concerning tax will be considered in the fullness of the review of the Henry Review of Taxation arrangements of the Commonwealth and the States, and it's not due to report until later on, and the secondly, of course, we have a response to the Health and Hospitals Reform Commission, which is due in the first part of next year.
You raise, more broadly, the question of tax and the economy. Can I again say this, in support of the importance of projects like this, but also in support of the partnership between the private sector and the Government - it's fundamentally important that we continue to drive the economic recovery in Australia, and that means continuing to implement the stimulus strategy which we've put in place, which is staged over time in order to support work for small businesses and jobs for tradies.
I see there's some alternative commentary around still from Mr Turnbull and Mr Hockey. Mr Turnbull and Mr Hockey seem determined to want to pull the rug from under the recovery and create real problems for tradies looking for work and for small businesses looking for work and activity.
The Government's strategy is clear - a three-stage stimulus strategy, which has been described in great detail, reaching its peak when the economy is at its weakest and then tailoring down as the economy recovers. That's the right approach to support tradies, to support small business and the economy in general. Our strategy is clear. The alternative would pull the rug from under recovery, pull the rug from under small business, and pull the rug from under tradies who have been finding it tough to find work.
Thanks very much.