The McGowan Government has negotiated a successful outcome for Western Australian taxpayers in the dispute with BHP over royalty deductions.
Following an audit by the Department of Mines, Industry Regulation and Safety (DMIRS), the State Government has been engaged in negotiations with BHP in good faith, to resolve the dispute in the best interests of the State of Western Australia.
The $250 million settlement with BHP and its joint venture partners is the end of this dispute, and prevents taxpayers being exposed to lengthy and expensive legal proceedings.
The McGowan Government will allocate $230 million towards the construction of a new women's and maternity hospital at the QEII site, replacing King Edward Memorial Hospital. This follows the $3.3 million included in the Budget to begin planning for the new hospital.
$15 million will go towards much-needed upgrades and repairs at Hedland Senior High School, including upgrades to Hardie House, classrooms and specialist rooms, and covered recreational areas.
A further $5 million will be directed to Newman Hospital for additional upgrades, including extra inpatient beds and an expanded procedure room. This is on top of the $48.7 million already allocated for the new Newman Hospital.
As stated by Premier Mark McGowan:
"This settlement resolves the dispute with BHP, and I'm pleased we've been able to negotiate a very positive outcome for WA taxpayers, with $250 million directed towards worthy projects.
"Pilbara MLA Kevin Michel has advocated strongly for upgrades to Hedland SHS and Newman Hospital, and our successful negotiations will allow us to get on with these projects.
"I am assured by BHP and its joint venture partners that they did not intentionally seek to minimise royalty payments, and I accept this advice, and thank BHP for working to resolve this dispute co-operatively with the State.
"The State Government has a strong, long-running relationship with BHP that has benefited all Western Australians. We look forward to that relationship continuing long into the future.
"I commend DMIRS for its work in identifying the royalties dispute and the State Solicitor's Office for its efforts in achieving a good outcome on behalf of the WA taxpayers."
