Transcript
18 August 2009
Interview with Kellie Connolly, National Nine News
Subject: $50 billion gas deal with China
KELLIE CONNOLLY: Well, for more on the gas deal, we're joined by Trade Minister Simon Crean. Minister, just how significant is this for Australia?
SIMON CREAN: Well, it's fantastic news for Australia and for Australian families, Kellie. It clearly has huge job implications, but importantly it has big revenue implications over the next 20 years - some $40 billion of revenue to the Government.
That means the sorts of things we need to do for families, hospitals, schools, et cetera, can obviously be advanced much more strategically now.
KELLIE CONNOLLY: So what does it mean for our GDP?
SIMON CREAN: Well, time will tell in terms of what impact on the GDP. I think that what we've got to look at is the revenue stream - $40 billion over the next 20 years.
But there are other aspects of this too, Kellie, which I think are really important. Clearly Australia is now being seen as a global player by China, for gas, clean fuel. This development is also the largest single CO2 storage, so carbon sequestration.
It's not just export of the gas, it's export of the technology, and obviously if China wants long-term supply from Australia, it's going to have enormous knock-on ramifications for other countries in the region that also have to secure their energy resource going forward. So...
KELLIE CONNOLLY: On that point, are there any other deals in the pipeline?
SIMON CREAN: Well, clearly there we're still trying to talk with Korea, Japan of course. But you look at this development. This is one huge development, it's massive in its scale, and it has huge implications in its own right. But Australia also...
KELLIE CONNOLLY: Why was there...
SIMON CREAN: Australia also has gas reserves on the east coast, methane gas. So Australia positioning itself as a global supplier of clean energy to the world, I think is not just important in terms of this specific initiative, but going forward the opportunities that can be made from it.
KELLIE CONNOLLY: A very big deal indeed. So why such secrecy surrounding the deal?
SIMON CREAN: I don't know. I - obviously the arrangements were made up there, but there's no secrecy about the announcement, Kellie. I mean, this is huge.
Fifty billion dollars, 40 billion in revenue, 6000 jobs in the construction phase, $33 billion in terms of additional investment supplying to the facilities that undertake up there. This is jobs not just in west Australia... jobs on the east coast as well.
KELLIE CONNOLLY: We have a very touchy relationship with China at the moment. Prime Minister Rudd was very cautious in his response to the case of Stern Hu. Was that because this deal hung in the balance?
SIMON CREAN: No, not at all. I think it's true to say that the relationship at times goes through its moments, but what this underscores is that the economic relationship, which is so fundamental to both economies, will continue to drive the inter-dependency between the two economies.
Now of course there'll be issues from time to time that cause problems. We have to deal with those in a sensible way. We have to build the relationship in a way that can manage those.
But what is underpinning the strength of our relationship with China is the economic base, the trade base, and what this deal highlights, Kellie, is how important a multiplier trade is.
KELLIE CONNOLLY: Okay, Simon...
SIMON CREAN: It's not just the 50 billion, it's the knock-on effects for the rest of the Australian economy.
KELLIE CONNOLLY: Okay, Simon Crean, thank you for your time this morning.
SIMON CREAN: Thank you.
ENDS
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