Hon Simon O'Brien MLC

Hon Simon O'Brien MLC

Former Minister for Finance; Commerce; Small Business

    Flow of contracts continue to gain momentum

    14/12/2011 12:00 AM
     
    • Wheatstone contracts continue to flow
    Commerce Minister Simon O’Brien today congratulated John Holland for securing the $370million contract to design and construct a 3,800-bed village for Chevron’s Wheatstone project.

    Mr O’Brien said this was a major contract arising from the Wheatstone development which served as a positive signal for the future for locally-based suppliers. 

    “This contract along with others that have been awarded recently demonstrates that WA has the skills and capacities to participate in the major projects under way in the State,” he said.  

    “The flow of contracts from this project will continue to gain momentum. However, this flow is divided into a mix of local and overseas orders.”

    “I have recently followed up a $320million contract for equipment modules, which has gone to a Malaysian operator. It turned out that there was a very simple reason for this not going to a local manufacturer - there was no Australian bidder for this tender.

    “While it is always disappointing when a contract does not come to Australia, this outcome confirms the findings of the Modular Fabrication in the Resources Sector WA report which I tabled in State Parliament on December 1.

    “This report found that the local steel fabrication industry suffered serious disadvantages in being considered for such work packages in terms of both price and capacity. Consequently I was not surprised to learn that there had been no Australian bids for this tender.

    “This State Government will continue to maintain its policy of promoting viable local supply wherever possible and working with industry to enhance its competitiveness when feasible.”

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