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Parliamentary Questions


Question Without Notice No. 1019 asked in the Legislative Council on 24 September 2020 by Hon Peter Collier

Parliament: 40 Session: 1

GST DISTRIBUTION — IRON ORE PRICE

1019. Hon PETER COLLIER to the minister representing the Treasurer:

I ask this question on behalf of Hon Dr Steve Thomas, who is on urgent parliamentary business. I have an instruction to deliver this question with the appropriate gusto!

I refer to Hon Steve Thomas's regular questions about the government's iron ore royalty boom, especially to question without notice 13, which he asked on 12 February 2019, in which the minister's answer included the line —

A scenario where the average price of iron ore remains at $90 a tonne has not been modelled, as this assumption is highly unrealistic.

(1) Given that the 2021 iron ore price has been forecast by Citigroup at $US110, JP Morgan at $US105 and Goldman Sachs at $US90, has the government now modelled a scenario in which the iron ore price averages $US90 a tonne?

(2) If yes to (1), will the Treasurer prove that modelling; and, if not why not?

(3) If no to (1), given the plethora of forecasts predicting over this price, why not?

(4) What has been the average spot price of iron ore between 12 February 2019 and 18 September 2020?

(5) Given the wealth of royalty riches raining down on the McGowan government since February 2019, is the Treasurer embarrassed by his reply and by the modest and underwhelming government response to the COVID-19 crisis?

The PRESIDENT: I am not sure about that last part of the question, minister. It might be seeking your opinion.

Hon STEPHEN DAWSON replied:

I thank Hon Dr Steve Thomas for some notice of the question.

(1)–(5) Updated iron ore price assumptions and royalty income forecasts will be released in next month's budget.