STATE ECONOMY
256. Hon Dr STEVE THOMAS to the minister representing the
Treasurer:
I am sure that the Minister for
Emergency Services will miss his Thursday!
I
refer to the release of the Standard and Poor's update for the Western Australian
economy released on 21 March 2022, and to the Treasurer's
responding media release yesterday.
(1) Does the
Treasurer agree with page 2 of the report that ''in fiscal 2021 (year
ended June 30, 2021) royalty income surged by a remarkable 44% to $A12.2
billion''?
(2) Does the
Treasurer agree with page 2 of the report that the fiscal economy ''since
mid-2020 has propelled broad-based revenue growth, including in transfer duties
and payroll taxes''?
(3) Does the Treasurer agree with page 2 of the report
that the state ''is now benefiting from top-up GST grants worth
an estimated $A3.7 billion over fiscal years 2021 and 2022''?
(4) Why does the
Premier's Statement not acknowledge revenue growth at all but hides the
truth of booming income, when the S&P report it is based on highlights it
all the way through the report?
Hon SAMANTHA ROWE replied:
I thank the honourable member for some notice of the question
and provide the following answer on behalf of the Minister for Emergency
Services representing the Treasurer.
(1) Royalty
income in 2020–21 was $12 181 million, as outlined on page 63 of the
2021–22 Government mid-year
financial projections statement.
The McGowan Labor government's efforts to keep the COVID-19
virus out of the state paid massive dividends for the state. If our state had
had the very long lockdowns experienced in
New South Wales and Victoria, we would not have been able to take advantage of
the high iron ore price. Part of the
reason for the high iron ore price was that our competitors, including Brazil,
had significantly reduced shipments due to the impact of the pandemic.
(2) Western Australia's
domestic economy has been the strongest in the country throughout the pandemic,
growing by 7.2 per cent in annual average
terms between 2019 and 2021. The strong economic activity has translated
into significant growth in revenues for transfer duty—also supported by
the McGowan Labor government's building bonus—payroll tax,
vehicle licence and insurance duty.
(3) The
McGowan Labor government's efforts to campaign constructively to the
commonwealth won a fairer share of the GST for Western Australia, including
calling for a review by the Productivity Commission. This is unlike the
previous Liberal–National government that failed for years to achieve a
better GST deal for Western Australia, but spent billions on the state's
credit card as if a deal had been done.
(4) Iron ore prices are highly volatile. Given this
inherent volatility, the McGowan Labor government's budgets are based on a prudent iron ore methodology. The
McGowan Labor government's responsible management of the state
finances has reversed the reckless economic management of the previous Liberal–National
government.