WA - From Boom to Bust

[numbercruncher]

Whos gonna save us now ??

How long until we are just working to pay the interest bill ?

WA is heading for its toughest year in nearly two decades, Premier Colin Barnett said today - as his Treasurer forecast a $361 million deficit within four years.

The WA Government's mid-year financial projections statement released today also showed that WA's net debt was likely to rise to $16.7 billion by 2011-12 - well over the 47 per cent debt to revenue benchmark.

http://www.news.com.au/perthnow/story/0,27574,24818597-2761,00.html

 

[CoffeeKing]

Re: WA - From Boom to Bust ...

Whos gonna save us now ??

How long until we are just working to pay the interest bill ?



http://www.news.com.au/perthnow/story/0,27574,24818597-2761,00.html

Wasn't it mentioned awhile ago about incresing the retirement age to 70 ?
or working until 70

 

[chops_a_must]

Re: WA - From Boom to Bust ...

One of the biggest problems, is that we have had absolutely zero help for the majority of these incredibly important national projects. It just gets poured into South Australia instead.

Which means that the government has had to load itself up with debt to fund the projects for the benefit of the Australian economy, as WA was not actually receiving a positive return for some of these investments.


So because of SA and the rest of Australia, the future of Australia's economy is going to be crippled due to having no help.

Well done Australia, and South Australia, well done. Clap clap.

 

[IFocus]

Re: WA - From Boom to Bust ...

Whos gonna save us now ??

How long until we are just working to pay the interest bill ?



http://www.news.com.au/perthnow/story/0,27574,24818597-2761,00.html

Clearly all the current problems in WA only started when the Liberals took over running the place............had to say it

WA has always been boom bust center of Australia such is life when you are digging holes in the ground for a living

 

[gfresh]

But we've got Labor up here Sounds familiar...

http://www.news.com.au/couriermail/story/0,23739,24777683-952,00.html

The predicted (Queensland Budget) surplus for 2008-09 has shrunk to just $54 million, with the ailing property market wiping almost $900 million from estimated stamp duty revenue.

The Government credits its infrastructure spending with keeping growth at 3 per cent - down from a forecast 41/4 per cent. But deficits of $124 million and $85 million are predicted for the next two financial years.

 

[Aussiejeff]

Re: WA - From Boom to Bust ...

Wasn't it mentioned awhile ago about incresing the retirement age to 70 ?
or working until 70

I think it is being re-worded to "All Australians will now be required by Law to work 150 hrs per week until they die".

 

[Smurf1976]

Re: WA - From Boom to Bust ...

One of the biggest problems, is that we have had absolutely zero help for the majority of these incredibly important national projects. It just gets poured into South Australia instead.

Which means that the government has had to load itself up with debt to fund the projects for the benefit of the Australian economy, as WA was not actually receiving a positive return for some of these investments.

Another economic disaster proudly brought to you by the whole easy money, speculation, outsourcing, privatisation, over consumption and don't bother producing anything of real value mentality we've had for years now.

Qld, NSW, SA and Tas also have budget black holes for exactly the same reasons. I'm not sure about Vic, ACT and NT but I'd be surprised if Vic especially didn't end up in a mess.

 

[Aussiejeff]

Re: WA - From Boom to Bust ...

Another economic disaster proudly brought to you by the whole easy money, speculation, outsourcing, privatisation, over consumption and don't bother producing anything of real value mentality we've had for years now.

Qld, NSW, SA and Tas also have budget black holes for exactly the same reasons. I'm not sure about Vic, ACT and NT but I'd be surprised if Vic especially didn't end up in a mess.

But, there's still plenty of econ un-believers propping up stock markets. No matter how bad the dailly news gets around the planet, the buying of stocks and rebound rallies against all that is gloom continue unabated.

So, are these "smart money" players causing rallies against general sentiment? Or rallies caused by blind dummies who have known nothing but whoopee good times and can't stop themselves by buying into every dip - gotta be value, ya know!?

Well, it's their money. I suppose at least you can dump shares if you get margin called but RE is another matter entirely.

aj

 

[chops_a_must]

Re: WA - From Boom to Bust ...

Another economic disaster proudly brought to you by the whole easy money, speculation, outsourcing, privatisation, over consumption and don't bother producing anything of real value mentality we've had for years now.

Qld, NSW, SA and Tas also have budget black holes for exactly the same reasons. I'm not sure about Vic, ACT and NT but I'd be surprised if Vic especially didn't end up in a mess.

No, they don't.

SA has a massive budget black hole because despite absolutely monumental amounts of money being poured into SA, their people and state remain completely backward and without the ability to contribute to anything meaningful.

Meanwhile... the Henderson area just south of Perth has contributed to world class manufacturing, and despite winning the most competitive contracts in the world, can't attract funding away from a dead beat SA.

Ever been to Meeka Smurf? Some of the most important trucking routes in Australia go through here, and yet a lot of these routes don't even have sealed roads FFS!!! They were meant to be funded 15 years ago, but once again the feds don't come to the party, it goes into the pockets of South Australians, and the WA government has to use debt to pay for something that was not their responsibility.

I just don't think people understand WA at all. We have had 2 projects federally funded in the past 20 years, that I can think of. Subi centro and the Roe Hwy. The Roe was 15 years late, and was only funded because the local residents went the civil disobedience course, and it became a danger to the populace.

That's what we have to deal with in WA.

It stinks.

 

[Aussiejeff]

Re: WA - From Boom to Bust ...

No, they don't.

SA has a massive budget black hole because despite absolutely monumental amounts of money being poured into SA, their people and state remain completely backward and without the ability to contribute to anything meaningful.

Meanwhile... the Henderson area just south of Perth has contributed to world class manufacturing, and despite winning the most competitive contracts in the world, can't attract funding away from a dead beat SA.

Ever been to Meeka Smurf? Some of the most important trucking routes in Australia go through here, and yet a lot of these routes don't even have sealed roads FFS!!! They were meant to be funded 15 years ago, but once again the feds don't come to the party, it goes into the pockets of South Australians, and the WA government has to use debt to pay for something that was not their responsibility.

I just don't think people understand WA at all. We have had 2 projects federally funded in the past 20 years, that I can think of. Subi centro and the Roe Hwy. The Roe was 15 years late, and was only funded because the local residents went the civil disobedience course, and it became a danger to the populace.

That's what we have to deal with in WA.

It stinks.

Would secession have been a viable option?

 

[chops_a_must]

We would be much better off I feel.

From memory we get about 6-7% of revenue, despite having about 10% population and generating well in excess of our population percentage since the 70s. It averages between 20-40% of revenue generated I've been told.

We also have 30% of the nations roads, and many more ports than other states, and we only get about 8% of the funding for this.

I am a staunch secessionist.

 

[spooly74]

their people and state remain completely backward and without the ability to contribute to anything meaningful.

Try and be a little more specific

That's what we have to deal with in WA.

It stinks

Asked and Answered :

 

[chops_a_must]

Try and be a little more specific

Mitsubishi is a prime example. :

As is the Collins Class Subs. :

 

[xoa]

That's what happens to banana republic economies.

Wasn't the resources boom supposed to last another 30 years? China was going to save us, and we were all going to live as kings, thanks to our export of unprocessed rocks.

 

[Aussiejeff]

That's what happens to banana republic economies.

Wasn't the resources boom supposed to last another 30 years? China was going to save us, and we were all going to live as kings, thanks to our export of unprocessed rocks.

Not only that, but also -

**HOT ROCKS! Get yer HOT ROCKS NOW!! Lots of luvly HOT ROCKS!! GOING CHEEP!!**

 

[chops_a_must]

That's what happens to banana republic economies.

Wasn't the resources boom supposed to last another 30 years? China was going to save us, and we were all going to live as kings, thanks to our export of unprocessed rocks.

The problem is though, WA has always been a boom/ bust economy.

But one of Gallop's many visions, was to actually use a boom to get us out of that cycle.

Unfortunately because of the theft by SA amongst others we can't use it, because we aren't allowed to keep the money we generate to get out of that cycle. Even though we have shown to be very very good when it comes to investing as a state, and say, SA has been absolutely ****ing useless, much like their people. And yet they get good money after bad thrown at them.

I mean... all of this boom's capacity was due to Dick Court's vision 15 years ago, which was carried through with Gallop and the Burrup plans that he followed through on...

I don't see any of that sort of vision happening anywhere else in Australia, and it sure as hell wasn't invested in by anyone else but WestERN Australians... yet it's the rest of Australia that benefits...

 

[noirua]

The problem is though, WA has always been a boom/ bust economy.

But one of Gallop's many visions, was to actually use a boom to get us out of that cycle.

Unfortunately because of the theft by SA amongst others we can't use it, because we aren't allowed to keep the money we generate to get out of that cycle. Even though we have shown to be very very good when it comes to investing as a state, and say, SA has been absolutely ****ing useless, much like their people. And yet they get good money after bad thrown at them.

I mean... all of this boom's capacity was due to Dick Court's vision 15 years ago, which was carried through with Gallop and the Burrup plans that he followed through on...

I don't see any of that sort of vision happening anywhere else in Australia, and it sure as hell wasn't invested in by anyone else but WestERN Australians... yet it's the rest of Australia that benefits...

It's really up to WA to charge as higher royalties as they can get away with. There have been grumbles going back to the 1930's, very similar to those of Scotland in the UK.
Basically, build up cash in boom times to level out the downturns, very simple really.

 

[chops_a_must]

It's really up to WA to charge as higher royalties as they can get away with. There have been grumbles going back to the 1930's, very similar to those of Scotland in the UK.
Basically, build up cash in boom times to level out the downturns, very simple really.

IT IS NOT THAT SIMPLE!

That is the entire problem!! If it was as simple as that, this would not be a debating point.

The royalties scheme is dependent upon federal legislation, and really the only royalties the states have a greater level of control over is oil and energy.

Most of the royalties of minerals etc. goes to federal consolidated revenue, and the spend needed from the state to set up these projects is often not recoverable because we often DO NOT get that money back.

All pretty crap considering we aren't actually a signatory to the constitution that allows that convention.

 

[Julia]

But we've got Labor up here Sounds familiar...

The predicted (Queensland Budget) surplus for 2008-09 has shrunk to just $54 million, with the ailing property market wiping almost $900 million from estimated stamp duty revenue.

The Government credits its infrastructure spending with keeping growth at 3 per cent - down from a forecast 41/4 per cent. But deficits of $124 million and $85 million are predicted for the next two financial years.

Which is why Ms Bligh has slapped on an extra approx $100 per car rego, and a "swimming pool inspection fee" of $300.
No doubt more to come.

 

[chops_a_must]

Which is why Ms Bligh has slapped on an extra approx $100 per car rego, and a "swimming pool inspection fee" of $300.
No doubt more to come.

But Julia,

do you think it is right that your state, like mine, subsidises the lifestyles of people in other states, due to it providing more to the country than they do? Which evidently results in you paying higher taxes and charges than you otherwise would.

Wouldn't it be better off to force each state to be sustainable on their own, and cut out this nonsense where certain states actually expect to have their sectors continually pumped with money they will never have a hope of returning?