will taxes stuff this project

Inpex declares it's 'committed to Darwin'


March 12th, 2009


CHIEF Minister Paul Henderson says the Inpex LNG project is "full steam ahead" despite CLP claims it faces a 10-figure tax bill.

CLP Senator Nigel Scullion said Inpex could be slugged with a $2.4 billion tax bill under the Federal Government's emissions trading scheme.

He said the bill would make up 10 per cent of the Japanese gas giant's capital spend.

"This wasn't there when they started making plans to come to Darwin," he said.

"This is a tax and a huge impediment to Inpex coming here."

But Mr Henderson accused Senator Scullion of scaremongering and irresponsibly damaging business confidence in the Territory.

He said he was assured by Inpex yesterday morning that the project would not be delayed.

"I am being absolutely truthful with Territorians when I say Inpex is telling me the project is full steam ahead," he said.

"If there are any issues the company has with ETS that they want me to take up with the Commonwealth Government, they only have to ask and I will. As of today, they haven't."

The Federal Government this week unveiled the long awaited draft legislation for the emissions trading scheme.

Submissions from Inpex and the LNG industry lifted the exemption from 20 to 60 per cent.

But Senator Scullion said this was still too high a tax. He said Inpex stated these concerns to him during private discussions.

"I know Inpex said (the ETS) will have a huge impact on us," he said.

"I reckon they would have mentioned it to the Chief Minister."

Senator Scullion said he was "absolutely sure" Inpex would take the $12 billion plant overseas to avoid the tax.

But Inpex spokeswoman Ilka Burnham-King issued a statement yesterday saying the company remained committed to bringing the project to Darwin.

"We update Government and Opposition regularly and the nature of those discussions are confidential," it said.

She said Inpex was evaluating the proposed emissions trading scheme legislation to understand its impact on the LNG industry.