Push to ensure locals win resource contracts


The Opposition Leader Eric Ripper has renewed calls for legislation to ensure local companies play a bigger role in major resource projects.

Yesterday, Chevron announced the signing of a $50 million contract that will see the WA fabricator AGC build steel pipe fittings for the Gorgon Gas development on Barrow Island.

The company will build the parts at its Kwinana factory and employ an extra 50 staff.

Unions have criticised the State Government for failing to keep work from major resources projects in Western Australia.

The Premier Colin Barnett says 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 said.

However, Mr Ripper says while the contract is a step 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,” he said.

“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.”

The Australian Manufacturing Workers Union president Steve McCartney says 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,” he said.


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