GST DISTRIBUTION — IRON ORE PRICE
1142. Hon Dr STEVE THOMAS to the minister representing the
I refer to the answer to my questions without notice 13, 80,
656, 938 and 961 this year about the 2019 mini-boom of iron ore royalties. I refer
also to the Annual Report on State Finances. I apologise to the
minister. The question originally said that that report was to be released
tomorrow, but this question was put in a couple of weeks ago.
(1) What is the current spot price of iron ore in US dollars?
(2) During what periods in 2019 so far was the iron ore price
over $US90 a tonne?
(3) What was the mean average iron ore price from 12 February
2019 to 13 October 2019?
(4) How much
additional iron ore royalty revenue above budget estimates has the state
received so far in the 2019 calendar year?
(5) How much
of this additional revenue has been committed to specific expenditure, and what
are those commitments?
Hon STEPHEN DAWSON
I thank the honourable member for some notice of the
question. This information has been provided to me by the Treasurer.
Iron ore prices are widely reported in the
media on a daily basis. As reported on page 52 of today's The West
Australian, today's price is $92.86.
(4) I refer
the member to the 2018–19 Annual Report on State Finances. The
2019–20 midyear review will be published by the end of 2019 and will
contain an update to the 2019–20 budget revenue projections.
(5) I refer
the honourable member to the response to part (5) of question without notice
938 and reiterate —
There will always be a number of
changes to revenue and expenditure expectations between the delivery of a state
budget and the conclusion of a financial year. The government does not make
expenditure decisions based on changes to a single revenue stream among
thousands of items of revenue and expenditure.
iron ore royalty revenue is highly volatile, and we will not know the full-year
effect of iron ore price movements relative to forecasts until after the
end of the year.