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.