Legislative Council, Wednesday 1 September 2021

Ms FORREST - to LEADER of the GOVERNMENT in the LEGISLATIVE COUNCIL, Mrs HISCUTT

With regard to the legal dispute between the government and Basslink P/L in respect of the 2015/16 Basslink interconnector outage:

1. Does the amount of $38.5 million awarded to the government by the agreed arbitrator in June 2021 signal an end to the legal dispute;

2. Has the amount been paid by Basslink P/L;

3. If this has been paid;
a. Has the amount recorded in the Preliminary Outcomes Report for 2020/21; and
b. Where was it recorded?

4. What are the total legal costs and any other out of pocket expenses incurred to date by the government in respect of this dispute?

ANSWER:

1. On 2 December 2020, the Hon Robert French AO, handed down his award in respect of the Basslink disputes. Under the terms of the arbitration process all parties are constrained from disclosing confidential information.

However, some aspects of the arbitrator’s awards have been made public including the $38.5 million in damages awarded to the State.

On 8 June 2021, the arbitrator made a decision on the award of costs in favour of the State, awarding a total of $7.2 million in costs and $1.04 million in interest to the State.

Parties are currently in negotiations to progress the findings made in the arbitrator’s award, including payment of awards and costs.

2. No. Parties are in negotiations around the payment of awards and costs arising from the Basslink arbitration.

3. N/A

4. As of 31 June 2021, a total of $16.66 million has been spent on expert advice in relation to the State’s dispute with Basslink.