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WA - From Boom to Bust

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Sounds alot like the US Car Industry:

Non competitive car industry (other states than WA) getting propped up by others sectors that are. Therefore hamstringing the prosperous areas of the economy or raising taxes on those that are well off to artificially prop up something that should be left to rot.

After all is said and done, after 5 years of bonanza, we, WA, having absolutely nothing to show for it. Not even a new ^&*&^* Football stadium.:banghead:

Succession is the only way to go.
 
chops_a_must said:
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?
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Having read through the Act Amendment (W. Australia DAY) Bill 2008 - 14/5/2008 and the explanatory memorandum, ref Dr S C Thomas. I notice it is the WA Government who are largely to blame for blowing the advantages of the boom period.

Royalties to WA have risen sharply and I make particular reference to the agreements between WA and BHP concerning Pilbara.
 
noirua said:
Having read through the Act Amendment (W. Australia DAY) Bill 2008 - 14/5/2008 and the explanatory memorandum, ref Dr S C Thomas. I notice it is the WA Government who are largely to blame for blowing the advantages of the boom period.

Royalties to WA have risen sharply and I make particular reference to the agreements between WA and BHP concerning Pilbara.
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HEY???/? :confused:

A new royalty scheme enacted on the 14/5/08, is somehow proof that WA has blown 5 YEARS of a mining boom?

How on earth do you come to that conclusion?

Of course royalties have increased massively to WA. As has the EXPENSES, which is the crux of my argument.


And Big Al, there is plenty of room on my secession bandwagon! Choo Choo!!

You just have to spell it correctly first. ;)
 
This is the sort of **** that has us Sandgropers, and particularly those in rural regions exceptionally fired up.

We spent millions upon millions of dollars, with all the environmental processes, approvals, putting the infrastructure in place. Absolutely staggering amounts of money to attract this project... and this is the piece of **** response that we have had over the last 5 years... and it is not an isolated case:

Howard rules out Gorgon royalties for WA Reply to this message
Prime Minister John Howard has ruled out giving royalties from the proposed multi-billion Gorgon gas project to Western Australia.

Federal Opposition Leader Kevin Rudd said that if Labor was elected he would give WA $100 million a year in royalties from the planned project off the state's northern coast.

The gas project lies in commonwealth waters so all royalties would go to the federal government, rather than WA.

Mr Howard said the federal government would not share royalties with WA if the Chevron-operated joint venture project gets the final investment go ahead.

"I think Western Australia has been fairly treated," Mr Howard told reporters after a cabinet meeting in Perth.

"This is an asset of the Australian people and it shall be treated like all other assets of the Australian people and that is the basis of our policy and it will remain so."

"I don't think it is good national economic policy to be earmarking according to geographic location, particularly revenue streams to particular states based on geographic location.

"Because other states would argue that they should have some kind of particular deal and you will find resentment building in other parts of the country, which is undesirable."

Mr Rudd said he would give 25 per cent of royalties to the state for a transport and water infrastructure fund.

Gorgon partners - Chevron Corp, ExxonMobil and Shell - announced in 2003 they would build the project at a cost of $11 billion.

They have not officially updated the figure but current speculation now puts the cost between $15 and $20 billion.

The companies are due to make a final investment decision this year.
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So why the **** would we pay money, to simply give it to prop up South Australia... when any money we spend, simply is not returned?

It gets me incredibly fired up. I wish fellow sandgropers would rise up against this. We, and particularly those in rural WA, have been treated like second class citizens, despite keeping the Australian economy out of severe economic trouble over the last few years.

What is the point in us actually investing any money? We may as well just say, "**** it, if you want to take all the royalties, you stump up the cash in the first place."

It is absurd and obscene, particularly when you see the living standards of those in the NW.

It's an absolute joke.
 
chops_a_must said:
HEY???/? :confused:

A new royalty scheme enacted on the 14/5/08, is somehow proof that WA has blown 5 YEARS of a mining boom?

How on earth do you come to that conclusion?

Of course royalties have increased massively to WA. As has the EXPENSES, which is the crux of my argument.


And Big Al, there is plenty of room on my secession bandwagon! Choo Choo!!

You just have to spell it correctly first. ;)
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Hi, Read the 2008 Act and the Amendment and then you'll see your beloved WA went on a spending spree when they should have been banking the cash, in the right banks of course:).

I have some affiliation with WA as one of my Great Grandfathers was Mayor of Midland in the early 1900's, and a few relatives run a business there.

Look forward to your response after the big read - good luck.
 
chops_a_must said:
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.
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It's all part of the Grand Globalisation Scheme (which includes a sub-clause covering "Nationalisation"), Section VII, Clause 3(a) - Though shalt not consider state "protectionist" nor "secessionist" policies on pain of invasion by a mightier power. :)

Why, don't you just lurv Grand Schemes?
 
Many West Australians and Queenslanders would think they deserved to keep more of the mining windfall, but the same case could be made by the Pilbara vs Perth or CQ vs Brisbane. Thousands of pseudo-professionals and bureaucrats in every capital city depend on the mining windfall. Our borrow-and-spend economy would collapse without the redistribution of wealth to urban centres.
 
noirua said:
Hi, Read the 2008 Act and the Amendment and then you'll see your beloved WA went on a spending spree when they should have been banking the cash, in the right banks of course:).

I have some affiliation with WA as one of my Great Grandfathers was Mayor of Midland in the early 1900's, and a few relatives run a business there.

Look forward to your response after the big read - good luck.
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This is the one I assume you mean? As after extensive searching, it's the only one that comes up, aside from this thread. :rolleyes:

Acts Amendment (Western Australia Day) Bill 2008

Bill No. 280


Synopsis The purpose of this Bill is to amend the Public and Bank Holidays Act 1972 by replacing "Foundation Day" with "Western Australia Day".


Private Members Bill introduced by Hon. Colin James Barnett


Status Bill Lapsed 07/08/2008


Links Click here to download the Bill
Click here to download the Explanatory Memoranda

This version of the Bill is as passed by the House in which it was introduced. This may not be the current version of the Bill.

Progress
Legislative Assembly Date Note No.
Introduced 14/05/2008
First Reading 14/05/2008
Second Reading 14/05/2008
Second Reading Speech p. 3005b


Other Procedures Date Note No.
Bill Lapsed 07/08/2008 1


Notes
1 - The 37th Parliament was prorogued and the Legislative Assembly dissolved on 07/08/08.
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So please do provide a link to whatever you are talking about. :rolleyes:


And if it is the announcement that Allanah was going to stump up state money for everything that had been awaiting federal funding over the last 5-6 years, then don't bother. We already know it, and it just adds further to my case. You know, the Bunbury HWY announcement that was made about this time, after being on the federal "priority" funding desk for the last 10 years. :rolleyes:
 
I noticed alot of new housing on canals at Peel Inlet and Harvey Estuary near Mandurah.Very ritzy looking too I might add.
Not alot of trees though, very desert-like, especially on the ocean side.

I love W.A. :D
 
Found it.

And surprise surprise, it backs up exactly the point I have been making... and the example in this thread. :rolleyes:

It would be nice if Western Australia received mining royalties from some of the boom industries whose prices will continue to climb over the next few years. The best example is the natural gas market. The world’s energy market will explode—almost literally. There will be a huge requirement to keep the price of energy at a minimum level.

If the state of Western Australia received significant royalties from the petroleum resources that can be found off the coast of Western Australia, there would be a continuation of the expansion of its mining royalties. That will not be the case, however, because the commonwealth government receives the bulk of those funds.

Western Australia will miss out on receiving royalties from industries in the Pilbara, the Kimberley and the north west. The commonwealth will be on the receiving end of the significant growth in mining and resources revenue into the future. That is a significant issue for the state of Western Australia. Those are the key points about the general growth of the economy—growth in taxation, a shrinking of commonwealth GST payments and a stagnation of the mining royalties that Western Australia will receive.
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:D LOL:

(2) Is the Premier aware that, according to the federal budget delivered last night, goods and services tax payments from the commonwealth to Western Australia will actually fall by $68 million over the coming year and that, as a result of this, South Australia will receive more GST payments than will Western Australia next year, despite the fact that there are half a million more people living in Western Australia?
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I'd have more sympathy for WA if its economic advantages weren't mostly due to blind luck. It's not like you guys have built silicon valley out there.
 
banco said:
I'd have more sympathy for WA if its economic advantages weren't mostly due to blind luck. It's not like you guys have built silicon valley out there.
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Yeah we have.

Ever heard of the old WAIT?

Which helped pioneer the LNG industry?
 
SA going down the gurgler as well .....

MORE than 1000 public sector jobs will go, buildings will be sold and projects deferred as Kevin Foley wields the axe in the face of a $112 million deficit.

About 600 government-owned houses for employees will also be sold.

Mr Foley said 1200 jobs would go by the end of 2009-10, with 200 more in 2010-11 and 2011-12.
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http://www.news.com.au/adelaidenow/story/0,27574,24823166-2682,00.html
 
My bet is that at some point in the economic slowdown governments both state and federal will raise taxes to supplement revenue as it is probable that the budgetry impact is still underestimated.

While providing the bulk of servics state governments are limited on revenue raising measures when compared to the federal government but an obvious target for a tax increase will be vehicle registration. I think one or two states are already doing this. If residential real estate prices drop enough then increases in stamp duty rates will also be on the table to maintain that revenue source. The extent to which state governments will be able to increase taxes and charges will depend on each states electoral cycle. Having a new government in WA expect the next budget to be harsh.

At the federal level petrol excise becomes an obvious target for an increase should oil prices remain low.
 

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