FOR PRESS CANBERRA : 12. 10. 73

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The Opposition Spokesman on National Development (Mr David

Fairbairn) today accused the Minister for Minerals and Energy

(Mr Connor) of again misleading Parliament in his answers to

questions in Parliament last Wednesday, October 10. .

"I asked Mr Connor whether he had obtained Cabinet1s agreement

to the provision of funds estimated at approximately $2550

million to bring the Woodside Burmah gas fields into production.

The estimated sum was made up as follows:

1. Production and separation platforms - approx.  $1000m.

2. 80 mile pipeline to bring the gas on shore $100m. - $150m.

3. Liquified natural gas plant $250m.

4. 10 tankers @ $100m. $1000m.

5. Pipeline to Perth (if required) $200m.

$2550m.- $2600m.

Mr Connor said I was incorrect in my calculations and that the

cost of bringing natural gas on shore in the North-West shelf

would be $210 - $212m.

"If my figures are incorrect,  then it is up to Mr Connor to show,

by producing feasibility or cost benefit analyses from APEA,

statut'ory authorities and the Bechtel corporation, where I. am in

error. The production and separation platforms are for the five

fields so far discovered.  In developing 4 fields in Bass Strait,

Esso-BHP spent more than $300m. The Woodside-Burmah platforms

are expected to be much more expensive because -

) 1. The cost of platforms has almost doubled.2. The north-west shelf platforms will be in much  deeper water.3. They will be further from land.4. Platforms must be stressed to withstand cyclones  of over 120 m.p.h.5. The north-west shelf is remote and therefore costs  are much higher.

2 .

"Thus, it is quite ridiculous to believe that the production

and separation platforms and 80 miles of pipeline can be built

for $21 Om."

"Secondly, Mr Connor misled the Parliament when he said that

the dedicated reserves of Gidgealpa will not cover more than 12

to 14 years.

He knows, or should know, that the firm of Degolyer and MacNaughton

of Texas have certified that the reserves now dedicated to the

Australian Gaslight Co. in the Cooper basin are sufficient to

supply the needs of Sydney, Newcastle and Woolongong for 30 years.

This firm is one of the most highly regarded in the world.  Since

their certificate was given more discoveries have been made in the

Cooper basin" Mr Fairbairn said. '

"Thirdly, Mr Connor was again inaccurate when he claimed that

'uranium contracts which were entered into prior to the recent

elections had unsatisfactory prices, the best of which was $US 7.25,

which is about $A 5 today.'  "This is not true," Mr Fairbairn said.

"Again the Minister knows that the EZ-Peko contracts are expressed

in $A. The lowest of these contracts are equivalent today to

$US. 8.10, while the highest goes up to $US. 10.83."

"Fourthly, the Minister stated that America anticipated a shortfall

of 850,000 tons of uranium by 1985. This figure is at variance

with a recently published report of the U.S. Atomic Energy

Commission, which set the anticipated shortfall in 1985 at

174,000 tons", Mr Fairbairn said.

"It is understood that the Japanese are close to finalising two

contracts for uranium worth about $600m. Australia might have had

a share in these contracts had the companies not been directed to

withdraw their offers by the Minister."

Mr Fairbairn concluded "Because of the continued inaccuracies of

Mr Connor's statements, the public is starting to wonder whether

any of Mr Connor's statements can ever be regarded as being in

accordance with the facts".

