A parliamentary question regarding the WA government's projected oil royalty revenue and its use to fund extra police officers. The opposition questions the accuracy of the budget's oil price forecasts.

AnsweredQoN 30Legislative Council
Asked
9 August 2000
Portfolio
Leader of the House representing the Premier

QuestionView source ↗

I refer to the Premier's claim that the 200 extra police officers the Government is promising will be funded from higher than budgeted oil royalties. (1) How much extra revenue does the Premier now anticipate will be generated from higher royalties over the next four years? (2) Was the level of revenue at the time of the budget deliberately underestimated? (3) If not, can the Premier explain why this revenue was not anticipated at the time of the May budget, which was only two and half months ago, given that oil prices were the same? Hon N.F. MOORE

AnswerView source ↗

(1) At the time of the 2000-01 budget, petroleum royalties were expected to raise $382.5m in 2000-01 based on an assumed oil price of $US22 to $US23 a barrel. The actual out-turn will depend upon the average oil price over the year. (2) No. (3) The budget estimate reflected an expectation that oil prices would fall from the then prevailing very high levels towards the long-run average price. This expectation was based on, among other things, Organisation of Petroleum Exporting Countries announcements of increased oil production quotas.
(1) How much extra revenue does the Premier now anticipate will be generated from higher royalties over the next four years? (2) Was the level of revenue at the time of the budget deliberately underestimated? (3) If not, can the Premier explain why this revenue was not anticipated at the time of the May budget, which was only two and half months ago, given that oil prices were the same? Hon N.F. MOORE replied : (1) At the time of the 2000-01 budget, petroleum royalties were expected to raise $382.5m in 2000-01 based on an assumed oil price of $US22 to $US23 a barrel. The actual out-turn will depend upon the average oil price over the year. (2) No. (3) The budget estimate reflected an expectation that oil prices would fall from the then prevailing very high levels towards the long-run average price. This expectation was based on, among other things, Organisation of Petroleum Exporting Countries announcements of increased oil production quotas.
(2) Was the level of revenue at the time of the budget deliberately underestimated? (3) If not, can the Premier explain why this revenue was not anticipated at the time of the May budget, which was only two and half months ago, given that oil prices were the same? Hon N.F. MOORE replied : (1) At the time of the 2000-01 budget, petroleum royalties were expected to raise $382.5m in 2000-01 based on an assumed oil price of $US22 to $US23 a barrel. The actual out-turn will depend upon the average oil price over the year. (2) No. (3) The budget estimate reflected an expectation that oil prices would fall from the then prevailing very high levels towards the long-run average price. This expectation was based on, among other things, Organisation of Petroleum Exporting Countries announcements of increased oil production quotas.
(3) If not, can the Premier explain why this revenue was not anticipated at the time of the May budget, which was only two and half months ago, given that oil prices were the same? Hon N.F. MOORE replied : (1) At the time of the 2000-01 budget, petroleum royalties were expected to raise $382.5m in 2000-01 based on an assumed oil price of $US22 to $US23 a barrel. The actual out-turn will depend upon the average oil price over the year. (2) No. (3) The budget estimate reflected an expectation that oil prices would fall from the then prevailing very high levels towards the long-run average price. This expectation was based on, among other things, Organisation of Petroleum Exporting Countries announcements of increased oil production quotas.
Hon N.F. MOORE replied : (1) At the time of the 2000-01 budget, petroleum royalties were expected to raise $382.5m in 2000-01 based on an assumed oil price of $US22 to $US23 a barrel. The actual out-turn will depend upon the average oil price over the year. (2) No. (3) The budget estimate reflected an expectation that oil prices would fall from the then prevailing very high levels towards the long-run average price. This expectation was based on, among other things, Organisation of Petroleum Exporting Countries announcements of increased oil production quotas.
(1) At the time of the 2000-01 budget, petroleum royalties were expected to raise $382.5m in 2000-01 based on an assumed oil price of $US22 to $US23 a barrel. The actual out-turn will depend upon the average oil price over the year. (2) No. (3) The budget estimate reflected an expectation that oil prices would fall from the then prevailing very high levels towards the long-run average price. This expectation was based on, among other things, Organisation of Petroleum Exporting Countries announcements of increased oil production quotas.
(2) No. (3) The budget estimate reflected an expectation that oil prices would fall from the then prevailing very high levels towards the long-run average price. This expectation was based on, among other things, Organisation of Petroleum Exporting Countries announcements of increased oil production quotas.
(3) The budget estimate reflected an expectation that oil prices would fall from the then prevailing very high levels towards the long-run average price. This expectation was based on, among other things, Organisation of Petroleum Exporting Countries announcements of increased oil production quotas.

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