Tony Crook (O'Connor, National Party) Share this | Link to this | Hansard source

Western Australia continues to be ripped-off by this federal government. Last night was further testimony to this. The issue of GST relativities is one I have raised in this House before; however, it is very timely that this issue is raised again before my private member's motion to establish a floor on the GST relativities is voted on in the House tomorrow.

For those not familiar with my motion, I seek to implement a 75 per cent floor on GST relativities for all states and territories. The motion is essential not just for the economic future of WA but to provide economic stability for any state or territory which may find itself in a situation similar to WA's in coming years. Currently, the state of Western Australia receives a lower proportion of GST return per capita than any other state or territory since the GST was introduced. Currently, WA receives around 72 per cent of GST relativities, while no other state or territory receives less than 91 per cent. In coming years, WA Treasury has predicted this GST return will fall even further, reaching a relativity of just 33 per cent by 2014-15. Without a GST floor, WA is set to lose out on around $4 billion in GST grants by 2014-15.

Two weeks ago, the state parliament sent a clear message to Canberra in support of a better deal. The WA state parliament voted unanimously to support my private member's motion to implement a floor on GST relativities. This motion was moved by the Leader of The Nationals WA, the Hon. Brendon Grylls, and supported by the WA Treasurer, the Hon. Christian Porter, and the WA Leader of the Opposition, the Hon. Eric Ripper. The WA state parliament has sent a resounding message to Canberra. Western Australia has had enough of being ripped off by the federal government. We are calling on the federal government and the federal representatives for Western Australia to take action in the best interests of our state. I quote the Leader of The Nationals WA, The Hon. Brendon Grylls:

I think that no-one would disagree that this is the most critical issue facing Western Australia, Western Australia's economic prosperity, and the nation's economic prosperity …

It should be clear to this House just how vital WA's resources sector is to the rest of the nation.

In the early hours of this morning, the minerals resource rent tax was passed by this House. It is estimated that 80 per cent of the revenue raised by this tax will be sourced from WA's resources sector. WA's resources sector drives the national economy, but the burden of providing the crucial infrastructure needed to support this expansion is exhausting the state's capacity. Without a floor in the GST, we will have no choice but to wind back infrastructure investment in Western Australia. The nation's economy needs WA to ramp up its economic investment because that will lead to an increase in exports, which is what makes our nation's economy strong. Yet the current GST formula will see revenue to Western Australia decrease and the state's ability to stimulate private sector investment diminish.

The Treasurer of WA, the Hon. Christian Porter, refers to the issue of GST returns as 'the economic fight of WA's life'. The state parliament has sent a clear message to this House that they recognise the vital importance of establishing a floor on GST returns. The WA Labor Party, Liberal Party and Nationals are all in agreement that my motion to establish a floor on GST returns is truly in the best interests of the state and the best interests of our nation.

When it comes time to vote on my private member's motion to deliver a floor on GST relativities to all states and territories, I hope to see all Western Australian members of this parliament lend their support to this motion.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! It being 8 pm, the debate is interrupted.

House adjourned at 20 : 00