Sydney Morning Herald - April 23, 2005 - www.smh.com.au

ACTU calls for East Timor benefits

The Australian Council of Trade Unions wants East Timor to have its fair share of benefits from gas and oil projects in the Timor Sea.

The maritime boundary negotiations between Australia and East Timor in Dili this week will decide which countries will manage the Timor Sea's oil and gas resources.

ACTU president Sharan Burrow said East Timor deserved its share of billions earned from oil and gas reserves.

"It is also in Australia's best interests to have a prosperous and stable East Timor as our neighbour," Ms Burrow said.

"The ACTU calls on the Australian government to stop short changing the East Timorese on maritime boundaries and government royalties.

"It is essential that East Timor enjoys an equitable share of the anticipated $8 billion of downstream benefits from these projects."

Ms Burrow said a maritime boundary would determine which country received about $40 billion dollars in government royalties from the Greater Sunrise field.

She said in addition to government revenue, there were also economic benefits of on-shore infrastructure and investment.
"These long-term projects will potentially generate thousands of jobs and bring with them numerous flow-on benefits to the local communities," Ms Burrow said.

"The ACTU recognises that such development would enable East Timor to escape continued poverty and to build a sustainable industry."

Ms Burrow said with an annual budget of just $100 million East Timor was very poor.

"Gas and oil from active projects in the Timor Sea is to be piped to Darwin for processing," she said.

"The Northern Territory Government predicts that the pipeline will generate 8,790 jobs and provide a $11 billion boost to the economy.

"Both Australian and East Timorese trade unionists are keen to guarantee that East Timor also benefits from its fair share of downstream development."

Unions have helped East Timor through the overseas aid arm of Union Aid Abroad (APHEDA).

Unions will stage rallies for "A Fair Go For East Timor" in Sydney, Melbourne and Adelaide on Tuesday.

Under international law maritime boundaries are decided either by the position of a continental shelf, or by the median between two countries.

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