Government ducks questions on exploration licence

Kim Booth
The Tasmanian Greens today raised concerns in the Parliament regarding the current State government’s continued support for an exploration licence granted to Great South Land Minerals Limited (GSLM), despite documented Mineral Resources Tasmania concerns over non-compliance with licence conditions that date back to at least 2002.

GOVT DUCKS QUESTIONS OVER CONTINUED SUPPORT FOR MINERAL EXPLORATION LICENCE
Despite Six Years of Concerns Over Lack of Compliance
Kim Booth MP
Member for Bass
Thursday, 5 March 2009

www.tas.greens.org.au

The Tasmanian Greens today raised concerns in the Parliament regarding the current State government’s continued support for an exploration licence granted to Great South Land Minerals Limited (GSLM), despite documented Mineral Resources Tasmania concerns over non-compliance with licence conditions that date back to at least 2002.

Greens Member for Bass, Kim Booth MP, cited a leaked letter written by the then-deputy Premier and Minister Paul Lennon to the CEO of GSLM in January 2003 which said:

“SEL 13/1998 occupies a major portion of Tasmania and in your own words, quoted to potential investors, is the ‘largest petroleum licence in Australia’. In exchange for your company holding an exploration licence that covers such a large portion of the State, the Government expects your company to adhere to its licence conditions.”

Mr Booth also referred to further leaked documents which include a Mineral Resources Tasmania letter to GSLM in December 2002, and a draft Ministerial Statement that provides a chronology of events and issues surrounding the licence from 2004 to 2005.

“It was very obvious that David Llewellyn avoided answering my specific question as to why the current Labor government has continued to support an exploration licence for GSLM in light of departmental and ministerial concerns that stem back to 2002 and 2003 respectively,” Mr Booth said.

“These concerns resulted in then-Deputy Premier Lennon preparing a letter in January 2003 to GSLM raising concerns about their lack of compliance with licence conditions, and the later draft Ministerial Statement cites the involvement of a subsequent Labor Minister, Mr Bryan Green, in the issue of licence conditions non-compliance.”

“This begs the question as to what has happened between then and now, that the GSLM exploration licence has continued?”

“Things had apparently been so bad that at least two previous Labor Ministers had been involved in matters arising from compliance concerns with the exploration licence, a comprehensive Ministerial statement detailing ongoing interactions with the company was drafted, and then something apparently happened which has meant that the current Labor government has been happy to let the exploration licence continue without explanation.”

“Minister Llewellyn did not come out when asked today and say ‘yes there were problems, but they have since been addressed hence we’ve given the company another chance,’ instead he avoided answering the question at all.”

Mr Booth attempted to table the documents in the Parliament today but the government used its numbers to deny permission.

“I am very conscious that both investors and contractors may be relying on the fact that the government appears to be supporting this company by continuing to issue exploration licences, when in fact they should have been honest and open about their concerns regarding non-compliance.”

“There are hundreds of Tasmanians who are anxiously awaiting payments from GSLM, including the drilling contractors themselves, and people may continue to be blissfully unaware of outstanding compliance issues that could threaten the company’s existence.”

“This government has an obligation to come clean and now must accept responsibility for any losses that are suffered if the licences are withdrawn,” Mr Booth said.