Rick Wilson (O'Connor, Liberal Party) Share this | Link to this | Hansard source

I rise today to speak on a number of issues that are very important to my electorate of O'Connor, my state of Western Australia and also regional Australia. The first issue I would like to raise is the news reports that Minister for Agriculture Joyce is proposing to move the Grains Research and Development Corporation from its headquarters here in Canberra to Wagga Wagga, which just happens to sit in the electorate of Riverina. I believe the Muresk Institute in Northam would be an ideal headquarters for the GRDC, with its administrative, agricultural education and research potential and close proximity to graingrowers. I also believe that the Western Australian government is proposing an incentive package to assist in any move that might take place and any costs involved with that move.

If the GRDC is going to be decentralised then Western Australia, the state that contributes the highest GRDC levies in the nation, would be the most sensible location for that facility. WA growers contribute up to 40 per cent of the GRDC's annual levy revenue in some years but receive only 27 per cent back for Western Australian specific projects. I am concerned that the Wagga Wagga location would further disenchant growers in Western Australia, who are already concerned that our state is not getting its full share of the research and development investment.

The view of many growers is that the GRDC is already too focused on the east coast and that this would be reinforced by any move of the headquarters to country New South Wales. While I understand why the federal agriculture minister has pushed for decentralisation, in a national body such as the GRDC it is going to be very hard to find a site that is going to keep everybody happy. The question of who pays for the move should not be answered with grower contributed levy funds from the GRDC. The notion that growers who have contributed a research and development levy should be forced to pay for a politically inspired decision to move the headquarters is ridiculous, and I think there will be very heavy push-back from growers.

The media has reported that the GRDC has a lease on the Canberra site, where it is currently based, that runs out to 2024. The rent is as much as $1.1 million per year. This is a very high cost for rent, and obviously rent would be much cheaper out in the regions, particularly at Muresk. The minister has indicated in a letter to the GRDC that the cost of the move is estimated to be $31.2 million. I would like to see more information on the cost of this move and whether savings would be made in the future, because ultimately a large proportion of this cost is going to be borne by WA growers. Minister Joyce has indicated that he welcomes suggestions of alternative places for the centre, and I am pleased to put on the record my strong view that, if the GRDC is going to move out of Canberra, WA is the best location. Western Australia's grain industry is worth over $4 billion to the state economy, and the state hosts the Australian Export Grains Innovation Centre.

Another matter that I would like to discuss is the ongoing issue of GST inequity for Western Australia. I absolutely welcome the federal government's announcement of a $499 million payment for road infrastructure in Western Australia. I want to emphasise that road infrastructure spending was already committed to and funded by the Western Australian government in the 2015-16 financial year. So, effectively, this $499 million payment frees up $499 million from the Western Australia government to spend as it will. The state government has received this federal government handout, with no strings attached from this year. However, it has been acknowledged that economic reform is required in Western Australia moving forward. The situation that Western Australia faces is still unfair, and I will continue to fight with my colleagues—I am sure the member for Swan, who is here tonight, will join me in this—in the House and in the Senate for a 50 per cent floor in the GST distribution.

Western Australia is set to receive less than $2 billion in GST revenue in the next financial year compared to South Australia—a state with less population than WA—which will receive $5.5 billion. New South Wales will receive over $17 billion, while Queensland and Victoria will both receive around $13 billion. I fully support the notion that all Australians should have an equal education, equal health and equal services. However, I do not support the supporting of poor fiscal management by other states. This is, quite frankly, unfair. A Western Australian who goes out for dinner will not only pay more for their meal than their interstate counterpart; they will also have to live with the fact that the majority of the extra money they will pay will not go towards projects within their own state.

Unlike New South Wales, South Australia, Victoria and Queensland, Western Australia is not receiving billions of dollars in pokie revenue. In addition Western Australia's iron ore revenue is not only counted in the GST distribution revenue, but is starting to fall dramatically. It is unsustainable that other states have been reported for inadequately managing their finances, while receiving the bulk of WA's GST revenue. When Western Australians hear about the hundreds of millions of dollars being wasted in Victoria not to build the East West Link or the South Australian Treasurer introducing yet more taxes in his state despite the GST windfall, their blood does boil.

Every state in the nation has benefited from Western Australia's iron ore production and, while it is true that WA benefited from the GST system when financial times were tough, during that period never did another state's share of the GST fall below 80 cents in the dollar. I am pleased that Prime Minister Tony Abbott and federal Treasurer Joe Hockey have recognised that Western Australia's situation is unreasonable. The half billion dollar funding announced to our state for road infrastructure proves just that. However, it is up to the states to show some maturity, fiscal management and fairness to ensure that Western Australia has the opportunity to receive its fair share of the GST.

The third important issue that I would like to raise is Youth Allowance and how rural and regional students are disadvantaged compared to their city counterparts. The coalition government has recently announced positive changes to the Youth Allowance that will benefit people in my electorate. From 1 July 2016, the family asset test and the family means test will be removed from the Youth Allowance parental income test. The changes will mean that farming families will not have farm assets counted towards the test for their children accessing Youth Allowance. Another part of the change is that all Family Tax Benefit children in the family pool will be included in income-testing arrangements. These changes are great for rural and regional families and specifically for students aiming for dependent Youth Allowance.

As more students achieve dependent Youth Allowance status, they will not have to take the gap year which will lower university deferral rates. However, the job is not done. I would like to see reduction in the Youth Allowance waiting period from 18 months to less than 14 months at least. This would allow each student in my electorate to start university after a one-year gap rather than a two-year gap. The current 18-month waiting period means many students in my electorate are disadvantaged. Instead of taking a one-year gap to qualify for the allowance they either have to wait two years or start university without the allowance. If a student finishes school in late November, that student is looking at late May before qualifying for Youth Allowance. Without a job in the city this makes starting university in late February almost impossible. I often receive calls from parents of children who are struggling to make ends meet while studying in the city and waiting for the allowance. In one instance a student had started university after one year but he was down to his last $150 while he waited Centrelink's approval for Youth Allowance.

I commend the students in my electorate who do the hard work to attend university, despite being disadvantaged. A city student has the option of living at home with their parents while studying at the university; they may also be able to work in the same part-time job that they had at school. A country student has to move to the city, find a new job—ideally, a reasonably paying one—to support themselves because they are not living at home. The country student has to move out of home for the first time and move to the city, sometimes hundreds of kilometres from their home, and then pay to make ends meet in that city. Covering the costs of rent, food and travel back home is a lot to ask students who cannot work in their home town. Reducing the Youth Allowance waiting period will ensure that regional and rural students in my electorate are only one year behind students who come from the city. For as long as it takes, I will continue to fight for a reduction in this Youth Allowance waiting period to ensure that country students can further their education without being disadvantaged.