Ripper urges legislation to ensure locals win resource contracts
The legislation was once again asked by Opposition Leader Eric Ripper to guarantee that the major resource projects are being taken care of local companies.
Chevron Australia's managing director, Roy Krzywosinski, and WA Premier Colin Barnett announced yesterday that AGC Industries has been awarded the contract to supply pipe spools - steel constructions used to connect pipe - for the Gorgon project.
With this, the company promised to construct the parts at its Kwinana factory and employ an extra 50 staff.
The State Government has been criticized by unions for failing to keep work from major resources projects in Western Australia.
Accepting the truth of the matter, Premier Colin Barnett said he is working hard to change that. "This is a big contract by any standards and is a sign that some of the work from these new resource projects, and particularly the LNG contracts, is now starting to flow into local industry and local fabricators," he added.
Ripper conveyed while most contracts aim in the right direction, WA businesses are not getting anywhere near their fair share of work from major resources projects.
"This is a welcome contract but it's a drop in the ocean compared to the volume of work that is going overseas. There has to be a systematic framework to make sure that WA businesses get their fair share, WA workers get their fair share of this resources work," Ripper said.
Steve McCartney, union president of The Australian Manufacturing Workers, expressed that the government needs to support a Labor bill which would ensure local companies play a bigger role in major resource projects.
"What needs to be done is the Liberal party need to look at the bill that's put on the floor, forget where it has come from, and look at the benefits for real workers," McCartney explained.