GST DISTRIBUTION — IRON ORE PRICE
13. Hon Dr STEVE THOMAS to the minister representing the
Treasurer:
(1) In light
of the globally significant and ongoing problems experienced by Vale, Brazil,
in the production of its iron ore, which has resulted in a local price of $US90
a tonne for iron ore being realised, what would be the predicted impact on the
state's iron ore royalty income over the next four years should the
average iron ore price remain at $US90 a tonne?
(2) What would
be the impact on WA's GST distribution if the iron ore price remained
at an average of $US90 a tonne over the next four years?
(3) Since 5
July 2018, what modelling has Treasury undertaken on the impacts of state iron
ore price variations on royalty revenue and subsequent GST returns to WA, and
will the minister table the modelling; and, if not, why not?
Hon STEPHEN DAWSON
replied:
I thank the honourable member for some notice of the
question. The following information has been provided to me by the Treasurer.
(1)–(2)
A scenario where the average price of iron ore remains at $90 a tonne has not
been modelled, as this assumption is highly unrealistic. The current government
has learnt from the mistakes of the previous government, and accordingly does
not assume that temporary windfall gains will continue into the future.
(3) Updated modelling was undertaken for, and the
results incorporated in, the revenue estimates of the 2018–19 Government
Mid-year Financial Projections Statement, which was published on 20 December
2018.
Hon Dr
Steve Thomas: If it wants to avoid issues —
Hon STEPHEN DAWSON: Member, I was going to say that I do
not have that midyear review with me. I am very happy to provide it to him
outside the debate, if he needs one.