Question Without Notice No. 6 asked in the Legislative Council on 27 February 2024 by Hon Dr Steve Thomas
Parliament: 41 Session: 1
GRIFFIN COAL — GRANTS
6. Hon Dr STEVE THOMAS to the minister representing the Minister for State and Industry Development, Jobs and Trade:
I refer to the Cook government's extraordinary $260 million taxpayer-funded bailout of the insolvent and foreign-owned Griffin Coal Mining Company.
(1) As of 27 February 2024, how much fiscal drawdown of the $260 million ''grant'' has been directed to the receivers and managers of the insolvent Griffin Coal Mining Company?
(2) On what dates did the drawdowns occur, what were the specific amounts and for what purpose or service rendered?
(3) To what entity, individual, business or contractor were the payments made? (4) Who within government has authorisation and oversight over drawdowns of the $260 million ''grant'', and what auditing oversight has been established to ensure rigorous eligibility and compliance on the spend of $260 million of taxpayer money?
Hon STEPHEN DAWSON replied:
I thank the honourable member for some notice of the question.
(1)–(4) The state government has taken this action to protect hundreds of Collie and south west jobs, shore up the state's electricity system and ensure Collie's managed and sensible transition into new industries over coming years. Funding is provided for costs essential to the ongoing operation of the mine, including labour, fuel and maintenance. Payments are provided to the receivers and managers of Griffin Coal Mining Company.
As of 27 February 2024, $50.5 million has been drawn down. Since the last update provided, drawdowns have consisted of $8.8 million on 17 November 2023 to cover the months of September 2023 and October 2023; $2.8 million on 6 December 2023 to cover the month of November 2023; $3.7 million on 15 December 2023 to cover the month of December 2023; and $4.7 million on 10 January 2024 to cover the month of January 2024.
The Department of the Premier and Cabinet is the agency responsible for administering funding to Griffin Coal. The government has engaged KPMG to provide advice to government on mining operations and funding matters at Griffin Coal.