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Parliamentary Questions


Question Without Notice No. 2 asked in the Legislative Council on 29 April 2021 by Hon Dr Steve Thomas

Parliament: 41 Session: 1

GST DISTRIBUTION — IRON ORE PRICEIRON ORE ROYALTY REVENUE

2. Hon Dr STEVE THOMAS to the minister representing the Treasurer:

Rolled-gold accountability.

I refer to the 2018–19 to 2020–21 mini boom in iron ore royalties, and to questions without notice 13 and 1196, asked in February 2019 and February 2020.

(1) What is the current spot price of iron ore, as measured by the government?

(2) What amount of iron ore royalty income has the government received for the 2020–21 financial year to date?

(3) Given that the last Treasurer described having a long-term iron ore price of over $US90 a tonne as ''highly unrealistic'', what has been the average iron ore price since he made that comment on 12 February 2019?

(4) Given that iron ore royalty income was $1.722 billion above budget predictions in 2018–19 and $2.199 billion above budget predictions in 2019–20, how much is the iron ore royalty revenue over the current budget prediction for 2020–21?

(5) Is the total of the 2.83 financial years listed in (4) now greater than the government's $5.5 billion COVID-19 response package; and, if so, by how much?

The PRESIDENT: It is good to start the year off with a lengthy question; it sets the tone.

Hon SUE ELLERY replied:

I thank the honourable member for some notice of the question. I answer on behalf of Hon Stephen Dawson.

(1) The current spot price is $US192.8 per tonne.

(2) Royalty income totalled $5.129 billion to 31 December 2020, as shown in the latest December quarterly report. The actual for 2020–21 will be published in the Annual report on state finances in September 2021.

(3) Annual average prices are shown in the Annual report on state finances, published each financial year. Iron ore prices are highly volatile. The McGowan Labor government's budgets are based on prudent iron ore methodology, given this inherent volatility.

(4) Refer to (2).

(5) The state government's COVID-19 response and recovery measures exceed $7 billion. This has been possible due to the strong financial management of the McGowan Labor government.