Hon. Norman Moore questions the government's compensation to Pilbara councils for revenue losses due to State Agreement Acts, given the Pilbara Regional Council's cool reception to the Pilbara fund. Hon. Kim Chance responds that the government is considering the claim, outlining conditions for compensation and highlighting government investment in the region.

AnsweredQoN 617Legislative Council
Asked
20 August 2004
Portfolio
Leader of the House representing the Premier

QuestionView source ↗

(1) In view of the cool reception given by the Pilbara Regional Council to the Government’s Pilbara fund, will the Government compensate Pilbara councils for revenue forgone as a result of state agreements Acts? (2) If not, why not? Hon KIM CHANCE

AnswerView source ↗

(1)-(2) I thank the Leader of the Opposition for some notice of the question. I advise that the Government is still considering the Pilbara Regional Council’s claim and submission for compensation on behalf of Pilbara local councils for rate revenue forgone as a result of state agreement Acts. The Government has indicated that it would consider claims for compensation when a local authority can demonstrate a net revenue loss as a result of the establishment of a state agreement Act project in its area. In endeavouring to demonstrate any net revenue loss, it would be necessary to address the overall impact of state agreement Acts on the shire’s revenue and costs, not just rate revenue forgone. Among other things, this would mean taking into account the impact of the Western Australian Local Government Grants Commission process on the shire’s commonwealth financial assistance grants if rating limitations did not exist. Other factors to be considered include benefits received by the shire from company-provided infrastructure, rates and normalisation or other payments, and the costs to the shires from local government services consumed by the project. It is acknowledged that the Pilbara is going through an unprecedented expansion as a result of major resource developments, largely in response to the greatly increased demand for raw materials from the booming Chinese economy. The Government’s commitment to the region has been demonstrated with $235.3 million in capital spending commitments earmarked in the 2004-05 budget for the Pilbara region over the next four years. Also, $80 million has been allocated in the 2004-05 budget for the 90-kilometre section of road from Karratha to Curlewis. Hon Norman Moore: Ha-ha! Hon KIM CHANCE: I knew the Leader of the Opposition would be pleased to hear that. In addition, the Government’s successful regional investment fund has been continued for another four years, with $80 million budgeted from 2005 to 2006. This provides a firm basis for building positive partnerships in the Pilbara involving local governments, community organisations, industry and the Commonwealth Government. In fact, since 2001-02, almost $64 million has been allocated through the RIF to support some 600 projects throughout regional Western Australia. Specifically in the Pilbara, RIF support for projects includes $4.5 million for the Port Hedland enhancement scheme; $2 million for the Roebourne enhancement scheme; funding for Onslow’s $1.3 million seawall; $1.3 million for redeveloping Cossack; and $500 000 for a new Bulgara sports centre in Karratha. The recently announced establishment of a $20 million Pilbara fund will also assist in accelerated investment in community infrastructure throughout the Pilbara. The fund will be administered by a steering group that includes representatives from the Pilbara Regional Council, the Chamber of Minerals and Energy of Western Australia and the State Government. The steering group will work closely with mining companies and local government to develop funding proposals for the provision of additional facilities. Hon Norman Moore: Was that yes or no? Hon KIM CHANCE: Yes. Hon Norman Moore: That was just pathetic! Hon Kim Chance: It was a comprehensive answer; I thought you would be delighted to hear it.
(2) If not, why not? Hon KIM CHANCE replied: (1)-(2) I thank the Leader of the Opposition for some notice of the question. I advise that the Government is still considering the Pilbara Regional Council’s claim and submission for compensation on behalf of Pilbara local councils for rate revenue forgone as a result of state agreement Acts. The Government has indicated that it would consider claims for compensation when a local authority can demonstrate a net revenue loss as a result of the establishment of a state agreement Act project in its area. In endeavouring to demonstrate any net revenue loss, it would be necessary to address the overall impact of state agreement Acts on the shire’s revenue and costs, not just rate revenue forgone. Among other things, this would mean taking into account the impact of the Western Australian Local Government Grants Commission process on the shire’s commonwealth financial assistance grants if rating limitations did not exist. Other factors to be considered include benefits received by the shire from company-provided infrastructure, rates and normalisation or other payments, and the costs to the shires from local government services consumed by the project. It is acknowledged that the Pilbara is going through an unprecedented expansion as a result of major resource developments, largely in response to the greatly increased demand for raw materials from the booming Chinese economy. The Government’s commitment to the region has been demonstrated with $235.3 million in capital spending commitments earmarked in the 2004-05 budget for the Pilbara region over the next four years. Also, $80 million has been allocated in the 2004-05 budget for the 90-kilometre section of road from Karratha to Curlewis. Hon Norman Moore: Ha-ha! Hon KIM CHANCE: I knew the Leader of the Opposition would be pleased to hear that. In addition, the Government’s successful regional investment fund has been continued for another four years, with $80 million budgeted from 2005 to 2006. This provides a firm basis for building positive partnerships in the Pilbara involving local governments, community organisations, industry and the Commonwealth Government. In fact, since 2001-02, almost $64 million has been allocated through the RIF to support some 600 projects throughout regional Western Australia. Specifically in the Pilbara, RIF support for projects includes $4.5 million for the Port Hedland enhancement scheme; $2 million for the Roebourne enhancement scheme; funding for Onslow’s $1.3 million seawall; $1.3 million for redeveloping Cossack; and $500 000 for a new Bulgara sports centre in Karratha. The recently announced establishment of a $20 million Pilbara fund will also assist in accelerated investment in community infrastructure throughout the Pilbara. The fund will be administered by a steering group that includes representatives from the Pilbara Regional Council, the Chamber of Minerals and Energy of Western Australia and the State Government. The steering group will work closely with mining companies and local government to develop funding proposals for the provision of additional facilities. Hon Norman Moore: Was that yes or no? Hon KIM CHANCE: Yes. Hon Norman Moore: That was just pathetic! Hon Kim Chance: It was a comprehensive answer; I thought you would be delighted to hear it.
Hon KIM CHANCE replied: (1)-(2) I thank the Leader of the Opposition for some notice of the question. I advise that the Government is still considering the Pilbara Regional Council’s claim and submission for compensation on behalf of Pilbara local councils for rate revenue forgone as a result of state agreement Acts. The Government has indicated that it would consider claims for compensation when a local authority can demonstrate a net revenue loss as a result of the establishment of a state agreement Act project in its area. In endeavouring to demonstrate any net revenue loss, it would be necessary to address the overall impact of state agreement Acts on the shire’s revenue and costs, not just rate revenue forgone. Among other things, this would mean taking into account the impact of the Western Australian Local Government Grants Commission process on the shire’s commonwealth financial assistance grants if rating limitations did not exist. Other factors to be considered include benefits received by the shire from company-provided infrastructure, rates and normalisation or other payments, and the costs to the shires from local government services consumed by the project. It is acknowledged that the Pilbara is going through an unprecedented expansion as a result of major resource developments, largely in response to the greatly increased demand for raw materials from the booming Chinese economy. The Government’s commitment to the region has been demonstrated with $235.3 million in capital spending commitments earmarked in the 2004-05 budget for the Pilbara region over the next four years. Also, $80 million has been allocated in the 2004-05 budget for the 90-kilometre section of road from Karratha to Curlewis. Hon Norman Moore: Ha-ha! Hon KIM CHANCE: I knew the Leader of the Opposition would be pleased to hear that. In addition, the Government’s successful regional investment fund has been continued for another four years, with $80 million budgeted from 2005 to 2006. This provides a firm basis for building positive partnerships in the Pilbara involving local governments, community organisations, industry and the Commonwealth Government. In fact, since 2001-02, almost $64 million has been allocated through the RIF to support some 600 projects throughout regional Western Australia. Specifically in the Pilbara, RIF support for projects includes $4.5 million for the Port Hedland enhancement scheme; $2 million for the Roebourne enhancement scheme; funding for Onslow’s $1.3 million seawall; $1.3 million for redeveloping Cossack; and $500 000 for a new Bulgara sports centre in Karratha. The recently announced establishment of a $20 million Pilbara fund will also assist in accelerated investment in community infrastructure throughout the Pilbara. The fund will be administered by a steering group that includes representatives from the Pilbara Regional Council, the Chamber of Minerals and Energy of Western Australia and the State Government. The steering group will work closely with mining companies and local government to develop funding proposals for the provision of additional facilities. Hon Norman Moore: Was that yes or no? Hon KIM CHANCE: Yes. Hon Norman Moore: That was just pathetic! Hon Kim Chance: It was a comprehensive answer; I thought you would be delighted to hear it.
(1)-(2) I thank the Leader of the Opposition for some notice of the question. I advise that the Government is still considering the Pilbara Regional Council’s claim and submission for compensation on behalf of Pilbara local councils for rate revenue forgone as a result of state agreement Acts. The Government has indicated that it would consider claims for compensation when a local authority can demonstrate a net revenue loss as a result of the establishment of a state agreement Act project in its area. In endeavouring to demonstrate any net revenue loss, it would be necessary to address the overall impact of state agreement Acts on the shire’s revenue and costs, not just rate revenue forgone. Among other things, this would mean taking into account the impact of the Western Australian Local Government Grants Commission process on the shire’s commonwealth financial assistance grants if rating limitations did not exist. Other factors to be considered include benefits received by the shire from company-provided infrastructure, rates and normalisation or other payments, and the costs to the shires from local government services consumed by the project. It is acknowledged that the Pilbara is going through an unprecedented expansion as a result of major resource developments, largely in response to the greatly increased demand for raw materials from the booming Chinese economy. The Government’s commitment to the region has been demonstrated with $235.3 million in capital spending commitments earmarked in the 2004-05 budget for the Pilbara region over the next four years. Also, $80 million has been allocated in the 2004-05 budget for the 90-kilometre section of road from Karratha to Curlewis. Hon Norman Moore: Ha-ha! Hon KIM CHANCE: I knew the Leader of the Opposition would be pleased to hear that. In addition, the Government’s successful regional investment fund has been continued for another four years, with $80 million budgeted from 2005 to 2006. This provides a firm basis for building positive partnerships in the Pilbara involving local governments, community organisations, industry and the Commonwealth Government. In fact, since 2001-02, almost $64 million has been allocated through the RIF to support some 600 projects throughout regional Western Australia. Specifically in the Pilbara, RIF support for projects includes $4.5 million for the Port Hedland enhancement scheme; $2 million for the Roebourne enhancement scheme; funding for Onslow’s $1.3 million seawall; $1.3 million for redeveloping Cossack; and $500 000 for a new Bulgara sports centre in Karratha. The recently announced establishment of a $20 million Pilbara fund will also assist in accelerated investment in community infrastructure throughout the Pilbara. The fund will be administered by a steering group that includes representatives from the Pilbara Regional Council, the Chamber of Minerals and Energy of Western Australia and the State Government. The steering group will work closely with mining companies and local government to develop funding proposals for the provision of additional facilities. Hon Norman Moore: Was that yes or no? Hon KIM CHANCE: Yes. Hon Norman Moore: That was just pathetic! Hon Kim Chance: It was a comprehensive answer; I thought you would be delighted to hear it.
The Government’s commitment to the region has been demonstrated with $235.3 million in capital spending commitments earmarked in the 2004-05 budget for the Pilbara region over the next four years. Also, $80 million has been allocated in the 2004-05 budget for the 90-kilometre section of road from Karratha to Curlewis.
Hon KIM CHANCE: I knew the Leader of the Opposition would be pleased to hear that. In addition, the Government’s successful regional investment fund has been continued for another four years, with $80 million budgeted from 2005 to 2006. This provides a firm basis for building positive partnerships in the Pilbara involving local governments, community organisations, industry and the Commonwealth Government. In fact, since 2001-02, almost $64 million has been allocated through the RIF to support some 600 projects throughout regional Western Australia. Specifically in the Pilbara, RIF support for projects includes $4.5 million for the Port Hedland enhancement scheme; $2 million for the Roebourne enhancement scheme; funding for Onslow’s $1.3 million seawall; $1.3 million for redeveloping Cossack; and $500 000 for a new Bulgara sports centre in Karratha. The recently announced establishment of a $20 million Pilbara fund will also assist in accelerated investment in community infrastructure throughout the Pilbara. The fund will be administered by a steering group that includes representatives from the Pilbara Regional Council, the Chamber of Minerals and Energy of Western Australia and the State Government. The steering group will work closely with mining companies and local government to develop funding proposals for the provision of additional facilities. Hon Norman Moore: Was that yes or no? Hon KIM CHANCE: Yes. Hon Norman Moore: That was just pathetic! Hon Kim Chance: It was a comprehensive answer; I thought you would be delighted to hear it.
In addition, the Government’s successful regional investment fund has been continued for another four years, with $80 million budgeted from 2005 to 2006. This provides a firm basis for building positive partnerships in the Pilbara involving local governments, community organisations, industry and the Commonwealth Government. In fact, since 2001-02, almost $64 million has been allocated through the RIF to support some 600 projects throughout regional Western Australia. Specifically in the Pilbara, RIF support for projects includes $4.5 million for the Port Hedland enhancement scheme; $2 million for the Roebourne enhancement scheme; funding for Onslow’s $1.3 million seawall; $1.3 million for redeveloping Cossack; and $500 000 for a new Bulgara sports centre in Karratha. The recently announced establishment of a $20 million Pilbara fund will also assist in accelerated investment in community infrastructure throughout the Pilbara. The fund will be administered by a steering group that includes representatives from the Pilbara Regional Council, the Chamber of Minerals and Energy of Western Australia and the State Government. The steering group will work closely with mining companies and local government to develop funding proposals for the provision of additional facilities. Hon Norman Moore: Was that yes or no? Hon KIM CHANCE: Yes. Hon Norman Moore: That was just pathetic! Hon Kim Chance: It was a comprehensive answer; I thought you would be delighted to hear it.
Hon Norman Moore: Was that yes or no? Hon KIM CHANCE: Yes. Hon Norman Moore: That was just pathetic! Hon Kim Chance: It was a comprehensive answer; I thought you would be delighted to hear it.
Hon KIM CHANCE: Yes. Hon Norman Moore: That was just pathetic! Hon Kim Chance: It was a comprehensive answer; I thought you would be delighted to hear it.
Hon Norman Moore: That was just pathetic! Hon Kim Chance: It was a comprehensive answer; I thought you would be delighted to hear it.
Hon Kim Chance: It was a comprehensive answer; I thought you would be delighted to hear it.

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