❓ Question regarding the redistribution of mining royalties and the fairness of Commonwealth-State funding arrangements for regional WA, with the Treasurer highlighting the state's infrastructure investment and the impact of the Commonwealth Grants Commission.
AnsweredQoN 638Legislative Assembly
QuestionView source ↗
COMMONWEALTH-STATE FUNDING, REVIEW
I refer to the Treasurer’s statement in the House yesterday during question time relating to the review of commonwealth-state funding. The Treasurer stated - . . . the outflow of funds from this State used to subsidise the rest of the Federation . . . is the largest fiscal subsidy to the rest of the Federation of any State in the country. Mr Graham: That is exactly what the Pilbara says. Mr TRENORDEN: The member for Pilbara will like this question. (1) Does this mean that the Treasurer will return a greater portion of the $776.7 million that mining royalties from the regions in which they were produced contributed to state revenue last year to reduce the largest fiscal subsidy to the metropolitan area? (2) Will rural and regional taxpayers get a fair and equitable return from the revenue they generate for this State? In a media statement released by the Treasurer on 30 November, he stated that the current system is starving donor regions of funding for the delivery of key public services and important infrastructure projects. Mr RIPPER
I refer to the Treasurer’s statement in the House yesterday during question time relating to the review of commonwealth-state funding. The Treasurer stated - . . . the outflow of funds from this State used to subsidise the rest of the Federation . . . is the largest fiscal subsidy to the rest of the Federation of any State in the country. Mr Graham: That is exactly what the Pilbara says. Mr TRENORDEN: The member for Pilbara will like this question. (1) Does this mean that the Treasurer will return a greater portion of the $776.7 million that mining royalties from the regions in which they were produced contributed to state revenue last year to reduce the largest fiscal subsidy to the metropolitan area? (2) Will rural and regional taxpayers get a fair and equitable return from the revenue they generate for this State? In a media statement released by the Treasurer on 30 November, he stated that the current system is starving donor regions of funding for the delivery of key public services and important infrastructure projects. Mr RIPPER
AnswerView source ↗
(1)-(2) I knew that when I spoke yesterday about the outflow of revenue from Western Australia that there might be a response from regional members; however, I thought the member for Pilbara would respond rather than the Leader of the National Party. An issue confronting the State is that its taxpayers are funding important infrastructure for resources projects. We supply funds for ports, roads and water supplies and so on. The State does not get the proper return on those investments because the royalty revenues that accrue to the State from the resources projects are redistributed away from the State by the Commonwealth Grants Commission process. On a rolling five-year average basis, about 80 to 90 per cent of the royalty revenues are in effect redirected away from the State. Although the state’s coffers receive the royalty revenues, we suffer a consequent reduction in commonwealth grants that fund other States, including Queensland and the Australian Capital Territory. Mr Board: Why do you object to the GST? Mr RIPPER: The goods and services tax is no panacea. We get fewer funds under the GST than we would have under previous arrangements. The Commonwealth gives us budget balancing assistance but it deducts from that budget balancing assistance a growth dividend. It is a pity that the State’s economy has declined, but the commonwealth still takes the growth dividend from us. It also takes money from us because it believes that government agencies can get cheaper prices as a result of the GST. This Government focuses a great deal of its effort on regional development. The important thing for members to understand is that the State’s economy operates in an interrelated fashion. The fact that the regions in Queensland and Canberra get some of our money impacts on our ability to assist the regions.
Mr TRENORDEN: The member for Pilbara will like this question. (1) Does this mean that the Treasurer will return a greater portion of the $776.7 million that mining royalties from the regions in which they were produced contributed to state revenue last year to reduce the largest fiscal subsidy to the metropolitan area? (2) Will rural and regional taxpayers get a fair and equitable return from the revenue they generate for this State? In a media statement released by the Treasurer on 30 November, he stated that the current system is starving donor regions of funding for the delivery of key public services and important infrastructure projects. Mr RIPPER replied: (1)-(2) I knew that when I spoke yesterday about the outflow of revenue from Western Australia that there might be a response from regional members; however, I thought the member for Pilbara would respond rather than the Leader of the National Party. An issue confronting the State is that its taxpayers are funding important infrastructure for resources projects. We supply funds for ports, roads and water supplies and so on. The State does not get the proper return on those investments because the royalty revenues that accrue to the State from the resources projects are redistributed away from the State by the Commonwealth Grants Commission process. On a rolling five-year average basis, about 80 to 90 per cent of the royalty revenues are in effect redirected away from the State. Although the state’s coffers receive the royalty revenues, we suffer a consequent reduction in commonwealth grants that fund other States, including Queensland and the Australian Capital Territory. Mr Board: Why do you object to the GST? Mr RIPPER: The goods and services tax is no panacea. We get fewer funds under the GST than we would have under previous arrangements. The Commonwealth gives us budget balancing assistance but it deducts from that budget balancing assistance a growth dividend. It is a pity that the State’s economy has declined, but the commonwealth still takes the growth dividend from us. It also takes money from us because it believes that government agencies can get cheaper prices as a result of the GST. This Government focuses a great deal of its effort on regional development. The important thing for members to understand is that the State’s economy operates in an interrelated fashion. The fact that the regions in Queensland and Canberra get some of our money impacts on our ability to assist the regions.
(1) Does this mean that the Treasurer will return a greater portion of the $776.7 million that mining royalties from the regions in which they were produced contributed to state revenue last year to reduce the largest fiscal subsidy to the metropolitan area? (2) Will rural and regional taxpayers get a fair and equitable return from the revenue they generate for this State? In a media statement released by the Treasurer on 30 November, he stated that the current system is starving donor regions of funding for the delivery of key public services and important infrastructure projects. Mr RIPPER replied: (1)-(2) I knew that when I spoke yesterday about the outflow of revenue from Western Australia that there might be a response from regional members; however, I thought the member for Pilbara would respond rather than the Leader of the National Party. An issue confronting the State is that its taxpayers are funding important infrastructure for resources projects. We supply funds for ports, roads and water supplies and so on. The State does not get the proper return on those investments because the royalty revenues that accrue to the State from the resources projects are redistributed away from the State by the Commonwealth Grants Commission process. On a rolling five-year average basis, about 80 to 90 per cent of the royalty revenues are in effect redirected away from the State. Although the state’s coffers receive the royalty revenues, we suffer a consequent reduction in commonwealth grants that fund other States, including Queensland and the Australian Capital Territory. Mr Board: Why do you object to the GST? Mr RIPPER: The goods and services tax is no panacea. We get fewer funds under the GST than we would have under previous arrangements. The Commonwealth gives us budget balancing assistance but it deducts from that budget balancing assistance a growth dividend. It is a pity that the State’s economy has declined, but the commonwealth still takes the growth dividend from us. It also takes money from us because it believes that government agencies can get cheaper prices as a result of the GST. This Government focuses a great deal of its effort on regional development. The important thing for members to understand is that the State’s economy operates in an interrelated fashion. The fact that the regions in Queensland and Canberra get some of our money impacts on our ability to assist the regions.
(2) Will rural and regional taxpayers get a fair and equitable return from the revenue they generate for this State? In a media statement released by the Treasurer on 30 November, he stated that the current system is starving donor regions of funding for the delivery of key public services and important infrastructure projects. Mr RIPPER replied: (1)-(2) I knew that when I spoke yesterday about the outflow of revenue from Western Australia that there might be a response from regional members; however, I thought the member for Pilbara would respond rather than the Leader of the National Party. An issue confronting the State is that its taxpayers are funding important infrastructure for resources projects. We supply funds for ports, roads and water supplies and so on. The State does not get the proper return on those investments because the royalty revenues that accrue to the State from the resources projects are redistributed away from the State by the Commonwealth Grants Commission process. On a rolling five-year average basis, about 80 to 90 per cent of the royalty revenues are in effect redirected away from the State. Although the state’s coffers receive the royalty revenues, we suffer a consequent reduction in commonwealth grants that fund other States, including Queensland and the Australian Capital Territory. Mr Board: Why do you object to the GST? Mr RIPPER: The goods and services tax is no panacea. We get fewer funds under the GST than we would have under previous arrangements. The Commonwealth gives us budget balancing assistance but it deducts from that budget balancing assistance a growth dividend. It is a pity that the State’s economy has declined, but the commonwealth still takes the growth dividend from us. It also takes money from us because it believes that government agencies can get cheaper prices as a result of the GST. This Government focuses a great deal of its effort on regional development. The important thing for members to understand is that the State’s economy operates in an interrelated fashion. The fact that the regions in Queensland and Canberra get some of our money impacts on our ability to assist the regions.
Mr RIPPER replied: (1)-(2) I knew that when I spoke yesterday about the outflow of revenue from Western Australia that there might be a response from regional members; however, I thought the member for Pilbara would respond rather than the Leader of the National Party. An issue confronting the State is that its taxpayers are funding important infrastructure for resources projects. We supply funds for ports, roads and water supplies and so on. The State does not get the proper return on those investments because the royalty revenues that accrue to the State from the resources projects are redistributed away from the State by the Commonwealth Grants Commission process. On a rolling five-year average basis, about 80 to 90 per cent of the royalty revenues are in effect redirected away from the State. Although the state’s coffers receive the royalty revenues, we suffer a consequent reduction in commonwealth grants that fund other States, including Queensland and the Australian Capital Territory. Mr Board: Why do you object to the GST? Mr RIPPER: The goods and services tax is no panacea. We get fewer funds under the GST than we would have under previous arrangements. The Commonwealth gives us budget balancing assistance but it deducts from that budget balancing assistance a growth dividend. It is a pity that the State’s economy has declined, but the commonwealth still takes the growth dividend from us. It also takes money from us because it believes that government agencies can get cheaper prices as a result of the GST. This Government focuses a great deal of its effort on regional development. The important thing for members to understand is that the State’s economy operates in an interrelated fashion. The fact that the regions in Queensland and Canberra get some of our money impacts on our ability to assist the regions.
(1)-(2) I knew that when I spoke yesterday about the outflow of revenue from Western Australia that there might be a response from regional members; however, I thought the member for Pilbara would respond rather than the Leader of the National Party. An issue confronting the State is that its taxpayers are funding important infrastructure for resources projects. We supply funds for ports, roads and water supplies and so on. The State does not get the proper return on those investments because the royalty revenues that accrue to the State from the resources projects are redistributed away from the State by the Commonwealth Grants Commission process. On a rolling five-year average basis, about 80 to 90 per cent of the royalty revenues are in effect redirected away from the State. Although the state’s coffers receive the royalty revenues, we suffer a consequent reduction in commonwealth grants that fund other States, including Queensland and the Australian Capital Territory. Mr Board: Why do you object to the GST? Mr RIPPER: The goods and services tax is no panacea. We get fewer funds under the GST than we would have under previous arrangements. The Commonwealth gives us budget balancing assistance but it deducts from that budget balancing assistance a growth dividend. It is a pity that the State’s economy has declined, but the commonwealth still takes the growth dividend from us. It also takes money from us because it believes that government agencies can get cheaper prices as a result of the GST. This Government focuses a great deal of its effort on regional development. The important thing for members to understand is that the State’s economy operates in an interrelated fashion. The fact that the regions in Queensland and Canberra get some of our money impacts on our ability to assist the regions.
Mr Board: Why do you object to the GST? Mr RIPPER: The goods and services tax is no panacea. We get fewer funds under the GST than we would have under previous arrangements. The Commonwealth gives us budget balancing assistance but it deducts from that budget balancing assistance a growth dividend. It is a pity that the State’s economy has declined, but the commonwealth still takes the growth dividend from us. It also takes money from us because it believes that government agencies can get cheaper prices as a result of the GST. This Government focuses a great deal of its effort on regional development. The important thing for members to understand is that the State’s economy operates in an interrelated fashion. The fact that the regions in Queensland and Canberra get some of our money impacts on our ability to assist the regions.
Mr RIPPER: The goods and services tax is no panacea. We get fewer funds under the GST than we would have under previous arrangements. The Commonwealth gives us budget balancing assistance but it deducts from that budget balancing assistance a growth dividend. It is a pity that the State’s economy has declined, but the commonwealth still takes the growth dividend from us. It also takes money from us because it believes that government agencies can get cheaper prices as a result of the GST. This Government focuses a great deal of its effort on regional development. The important thing for members to understand is that the State’s economy operates in an interrelated fashion. The fact that the regions in Queensland and Canberra get some of our money impacts on our ability to assist the regions.
This Government focuses a great deal of its effort on regional development. The important thing for members to understand is that the State’s economy operates in an interrelated fashion. The fact that the regions in Queensland and Canberra get some of our money impacts on our ability to assist the regions.
Mr TRENORDEN: The member for Pilbara will like this question. (1) Does this mean that the Treasurer will return a greater portion of the $776.7 million that mining royalties from the regions in which they were produced contributed to state revenue last year to reduce the largest fiscal subsidy to the metropolitan area? (2) Will rural and regional taxpayers get a fair and equitable return from the revenue they generate for this State? In a media statement released by the Treasurer on 30 November, he stated that the current system is starving donor regions of funding for the delivery of key public services and important infrastructure projects. Mr RIPPER replied: (1)-(2) I knew that when I spoke yesterday about the outflow of revenue from Western Australia that there might be a response from regional members; however, I thought the member for Pilbara would respond rather than the Leader of the National Party. An issue confronting the State is that its taxpayers are funding important infrastructure for resources projects. We supply funds for ports, roads and water supplies and so on. The State does not get the proper return on those investments because the royalty revenues that accrue to the State from the resources projects are redistributed away from the State by the Commonwealth Grants Commission process. On a rolling five-year average basis, about 80 to 90 per cent of the royalty revenues are in effect redirected away from the State. Although the state’s coffers receive the royalty revenues, we suffer a consequent reduction in commonwealth grants that fund other States, including Queensland and the Australian Capital Territory. Mr Board: Why do you object to the GST? Mr RIPPER: The goods and services tax is no panacea. We get fewer funds under the GST than we would have under previous arrangements. The Commonwealth gives us budget balancing assistance but it deducts from that budget balancing assistance a growth dividend. It is a pity that the State’s economy has declined, but the commonwealth still takes the growth dividend from us. It also takes money from us because it believes that government agencies can get cheaper prices as a result of the GST. This Government focuses a great deal of its effort on regional development. The important thing for members to understand is that the State’s economy operates in an interrelated fashion. The fact that the regions in Queensland and Canberra get some of our money impacts on our ability to assist the regions.
(1) Does this mean that the Treasurer will return a greater portion of the $776.7 million that mining royalties from the regions in which they were produced contributed to state revenue last year to reduce the largest fiscal subsidy to the metropolitan area? (2) Will rural and regional taxpayers get a fair and equitable return from the revenue they generate for this State? In a media statement released by the Treasurer on 30 November, he stated that the current system is starving donor regions of funding for the delivery of key public services and important infrastructure projects. Mr RIPPER replied: (1)-(2) I knew that when I spoke yesterday about the outflow of revenue from Western Australia that there might be a response from regional members; however, I thought the member for Pilbara would respond rather than the Leader of the National Party. An issue confronting the State is that its taxpayers are funding important infrastructure for resources projects. We supply funds for ports, roads and water supplies and so on. The State does not get the proper return on those investments because the royalty revenues that accrue to the State from the resources projects are redistributed away from the State by the Commonwealth Grants Commission process. On a rolling five-year average basis, about 80 to 90 per cent of the royalty revenues are in effect redirected away from the State. Although the state’s coffers receive the royalty revenues, we suffer a consequent reduction in commonwealth grants that fund other States, including Queensland and the Australian Capital Territory. Mr Board: Why do you object to the GST? Mr RIPPER: The goods and services tax is no panacea. We get fewer funds under the GST than we would have under previous arrangements. The Commonwealth gives us budget balancing assistance but it deducts from that budget balancing assistance a growth dividend. It is a pity that the State’s economy has declined, but the commonwealth still takes the growth dividend from us. It also takes money from us because it believes that government agencies can get cheaper prices as a result of the GST. This Government focuses a great deal of its effort on regional development. The important thing for members to understand is that the State’s economy operates in an interrelated fashion. The fact that the regions in Queensland and Canberra get some of our money impacts on our ability to assist the regions.
(2) Will rural and regional taxpayers get a fair and equitable return from the revenue they generate for this State? In a media statement released by the Treasurer on 30 November, he stated that the current system is starving donor regions of funding for the delivery of key public services and important infrastructure projects. Mr RIPPER replied: (1)-(2) I knew that when I spoke yesterday about the outflow of revenue from Western Australia that there might be a response from regional members; however, I thought the member for Pilbara would respond rather than the Leader of the National Party. An issue confronting the State is that its taxpayers are funding important infrastructure for resources projects. We supply funds for ports, roads and water supplies and so on. The State does not get the proper return on those investments because the royalty revenues that accrue to the State from the resources projects are redistributed away from the State by the Commonwealth Grants Commission process. On a rolling five-year average basis, about 80 to 90 per cent of the royalty revenues are in effect redirected away from the State. Although the state’s coffers receive the royalty revenues, we suffer a consequent reduction in commonwealth grants that fund other States, including Queensland and the Australian Capital Territory. Mr Board: Why do you object to the GST? Mr RIPPER: The goods and services tax is no panacea. We get fewer funds under the GST than we would have under previous arrangements. The Commonwealth gives us budget balancing assistance but it deducts from that budget balancing assistance a growth dividend. It is a pity that the State’s economy has declined, but the commonwealth still takes the growth dividend from us. It also takes money from us because it believes that government agencies can get cheaper prices as a result of the GST. This Government focuses a great deal of its effort on regional development. The important thing for members to understand is that the State’s economy operates in an interrelated fashion. The fact that the regions in Queensland and Canberra get some of our money impacts on our ability to assist the regions.
Mr RIPPER replied: (1)-(2) I knew that when I spoke yesterday about the outflow of revenue from Western Australia that there might be a response from regional members; however, I thought the member for Pilbara would respond rather than the Leader of the National Party. An issue confronting the State is that its taxpayers are funding important infrastructure for resources projects. We supply funds for ports, roads and water supplies and so on. The State does not get the proper return on those investments because the royalty revenues that accrue to the State from the resources projects are redistributed away from the State by the Commonwealth Grants Commission process. On a rolling five-year average basis, about 80 to 90 per cent of the royalty revenues are in effect redirected away from the State. Although the state’s coffers receive the royalty revenues, we suffer a consequent reduction in commonwealth grants that fund other States, including Queensland and the Australian Capital Territory. Mr Board: Why do you object to the GST? Mr RIPPER: The goods and services tax is no panacea. We get fewer funds under the GST than we would have under previous arrangements. The Commonwealth gives us budget balancing assistance but it deducts from that budget balancing assistance a growth dividend. It is a pity that the State’s economy has declined, but the commonwealth still takes the growth dividend from us. It also takes money from us because it believes that government agencies can get cheaper prices as a result of the GST. This Government focuses a great deal of its effort on regional development. The important thing for members to understand is that the State’s economy operates in an interrelated fashion. The fact that the regions in Queensland and Canberra get some of our money impacts on our ability to assist the regions.
(1)-(2) I knew that when I spoke yesterday about the outflow of revenue from Western Australia that there might be a response from regional members; however, I thought the member for Pilbara would respond rather than the Leader of the National Party. An issue confronting the State is that its taxpayers are funding important infrastructure for resources projects. We supply funds for ports, roads and water supplies and so on. The State does not get the proper return on those investments because the royalty revenues that accrue to the State from the resources projects are redistributed away from the State by the Commonwealth Grants Commission process. On a rolling five-year average basis, about 80 to 90 per cent of the royalty revenues are in effect redirected away from the State. Although the state’s coffers receive the royalty revenues, we suffer a consequent reduction in commonwealth grants that fund other States, including Queensland and the Australian Capital Territory. Mr Board: Why do you object to the GST? Mr RIPPER: The goods and services tax is no panacea. We get fewer funds under the GST than we would have under previous arrangements. The Commonwealth gives us budget balancing assistance but it deducts from that budget balancing assistance a growth dividend. It is a pity that the State’s economy has declined, but the commonwealth still takes the growth dividend from us. It also takes money from us because it believes that government agencies can get cheaper prices as a result of the GST. This Government focuses a great deal of its effort on regional development. The important thing for members to understand is that the State’s economy operates in an interrelated fashion. The fact that the regions in Queensland and Canberra get some of our money impacts on our ability to assist the regions.
Mr Board: Why do you object to the GST? Mr RIPPER: The goods and services tax is no panacea. We get fewer funds under the GST than we would have under previous arrangements. The Commonwealth gives us budget balancing assistance but it deducts from that budget balancing assistance a growth dividend. It is a pity that the State’s economy has declined, but the commonwealth still takes the growth dividend from us. It also takes money from us because it believes that government agencies can get cheaper prices as a result of the GST. This Government focuses a great deal of its effort on regional development. The important thing for members to understand is that the State’s economy operates in an interrelated fashion. The fact that the regions in Queensland and Canberra get some of our money impacts on our ability to assist the regions.
Mr RIPPER: The goods and services tax is no panacea. We get fewer funds under the GST than we would have under previous arrangements. The Commonwealth gives us budget balancing assistance but it deducts from that budget balancing assistance a growth dividend. It is a pity that the State’s economy has declined, but the commonwealth still takes the growth dividend from us. It also takes money from us because it believes that government agencies can get cheaper prices as a result of the GST. This Government focuses a great deal of its effort on regional development. The important thing for members to understand is that the State’s economy operates in an interrelated fashion. The fact that the regions in Queensland and Canberra get some of our money impacts on our ability to assist the regions.
This Government focuses a great deal of its effort on regional development. The important thing for members to understand is that the State’s economy operates in an interrelated fashion. The fact that the regions in Queensland and Canberra get some of our money impacts on our ability to assist the regions.
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