❓ Ms Duncan questions the Minister for Regional Development on the Chamber of Commerce and Industry's criticisms of the Royalties for Regions program. The Minister defends the program's transparency, rigour, and importance to regional WA.
AnsweredQoN 168Legislative Assembly
QuestionView source ↗
ROYALTIES
FOR REGIONS — CHAMBER OF COMMERCE AND INDUSTRY OF WESTERN AUSTRALIA —
PAPER
168. Ms W.M. DUNCAN to the
Minister for Regional Development:
Yesterday the Chamber of Commerce and Industry of Western
Australia released a paper entitled ''The future of infrastructure—a
vision for WA''. What is the minister's response to the paper's
comments about royalties for regions?
FOR REGIONS — CHAMBER OF COMMERCE AND INDUSTRY OF WESTERN AUSTRALIA —
PAPER
168. Ms W.M. DUNCAN to the
Minister for Regional Development:
Yesterday the Chamber of Commerce and Industry of Western
Australia released a paper entitled ''The future of infrastructure—a
vision for WA''. What is the minister's response to the paper's
comments about royalties for regions?
AnswerView source ↗
I thank the member for Kalgoorlie for the question and for her
very strong commentary and support for what has been a fantastic program in
regional Western Australia. It certainly was a little disappointing to see the
comments from the Chamber of Commerce, most notably from the CEO, Deidre
Willmott, and the range of criticisms they had of the royalties for regions
program. A number of criticisms were centred on the program, which can be
summarised into four broad areas. First, at a time of budget constraint, is
this the best use of government money? The second claim was that the program
lacks transparency. Thirdly, they said that more rigour should be given to RFR
projects in terms of where that investment goes; and, fourthly, regional
projects should be part of a broader plan for the state's
infrastructure needs.
Mr
D.A. Templeman interjected.
The
SPEAKER : Member for Mandurah, I call you to order for the first time. You
do not need to answer the question.
Mr D.T. REDMAN : In
terms of budget constraints, the royalties for regions program is around three
per cent of the state's budget. When we went into the current 2014–15
budget, we made adjustments to the program to give it a $1 billion expenditure
limit. That was an absolutely prudent approach to take to the state government's
financial situation. It also preserves the integrity of the program. We have
also made adjustments to some of the funding programs, notably, the country
local government fund. We are making changes within it to respond to the needs
of the state.
In terms of transparency and rigour, we will not get a more
transparent program than royalties for regions. It has its own section in the
state budget. It goes through a very rigorous cabinet approval process, both at
budget time and then when the projects come back to cabinet with a business
case that supports the investment. The Auditor General has made a number of
inquiries into the RFR program and has not found any issues with it. The
Economic Regulation Authority made a report and found no differences between a
draft report that the ERA put out and then its final report. It is interesting
that the CCI quoted the draft report, from information I have been given. The
other point about whether it makes a broader plan, on the back of the Duncan
review, which is a very comprehensive review of the program, we put in place
regional investment blueprints that give a very clear direction about
investments that make a difference and unlock potential in regional Western
Australia. I find it really interesting that the member for Mandurah knows it
is alive and well, the member for Kimberley knows it is alive and well, the
member for Albany knows it is alive and well and even the member for Collie–Preston
knows it is alive and well, but, according to the Leader of the Opposition,
royalties for regions is dead and buried.
Mr D.A. Templeman interjected.
The SPEAKER : Thank
you, member for Mandurah. I call you to order for the second time. Minister,
will you wind up please.
Mr D.T. REDMAN :
Yes, I will. I would like to close by quoting from a media release from the
Regional Chambers of Commerce and Industry of WA, which states —
''Unless you have lived,
worked and done business in the regions, it is hard to comprehend just how
transformational the Royalties for Regions legislation has been for all
regional towns and communities.'' CEO of RCCIWA, Kitty Prodonovich
stated.
''It is much more than
things being built and programmes being delivered, it has created a complete
shift in mindset that the needs of regional WA should be prioritised and well
planned as those communities are the economic generators of the state.
Royalties for Regions has done this and the impact has been profound and will
be long lasting.''
very strong commentary and support for what has been a fantastic program in
regional Western Australia. It certainly was a little disappointing to see the
comments from the Chamber of Commerce, most notably from the CEO, Deidre
Willmott, and the range of criticisms they had of the royalties for regions
program. A number of criticisms were centred on the program, which can be
summarised into four broad areas. First, at a time of budget constraint, is
this the best use of government money? The second claim was that the program
lacks transparency. Thirdly, they said that more rigour should be given to RFR
projects in terms of where that investment goes; and, fourthly, regional
projects should be part of a broader plan for the state's
infrastructure needs.
Mr
D.A. Templeman interjected.
The
SPEAKER : Member for Mandurah, I call you to order for the first time. You
do not need to answer the question.
Mr D.T. REDMAN : In
terms of budget constraints, the royalties for regions program is around three
per cent of the state's budget. When we went into the current 2014–15
budget, we made adjustments to the program to give it a $1 billion expenditure
limit. That was an absolutely prudent approach to take to the state government's
financial situation. It also preserves the integrity of the program. We have
also made adjustments to some of the funding programs, notably, the country
local government fund. We are making changes within it to respond to the needs
of the state.
In terms of transparency and rigour, we will not get a more
transparent program than royalties for regions. It has its own section in the
state budget. It goes through a very rigorous cabinet approval process, both at
budget time and then when the projects come back to cabinet with a business
case that supports the investment. The Auditor General has made a number of
inquiries into the RFR program and has not found any issues with it. The
Economic Regulation Authority made a report and found no differences between a
draft report that the ERA put out and then its final report. It is interesting
that the CCI quoted the draft report, from information I have been given. The
other point about whether it makes a broader plan, on the back of the Duncan
review, which is a very comprehensive review of the program, we put in place
regional investment blueprints that give a very clear direction about
investments that make a difference and unlock potential in regional Western
Australia. I find it really interesting that the member for Mandurah knows it
is alive and well, the member for Kimberley knows it is alive and well, the
member for Albany knows it is alive and well and even the member for Collie–Preston
knows it is alive and well, but, according to the Leader of the Opposition,
royalties for regions is dead and buried.
Mr D.A. Templeman interjected.
The SPEAKER : Thank
you, member for Mandurah. I call you to order for the second time. Minister,
will you wind up please.
Mr D.T. REDMAN :
Yes, I will. I would like to close by quoting from a media release from the
Regional Chambers of Commerce and Industry of WA, which states —
''Unless you have lived,
worked and done business in the regions, it is hard to comprehend just how
transformational the Royalties for Regions legislation has been for all
regional towns and communities.'' CEO of RCCIWA, Kitty Prodonovich
stated.
''It is much more than
things being built and programmes being delivered, it has created a complete
shift in mindset that the needs of regional WA should be prioritised and well
planned as those communities are the economic generators of the state.
Royalties for Regions has done this and the impact has been profound and will
be long lasting.''
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