Western Australians will be waiting to reap the full benefits of the massive surge in royalty revenue, with Premier Mark McGowan saying today he wanted a lasting impact.
Western Australians will be waiting to reap the full benefits of the massive surge in royalty revenue, with Premier Mark McGowan saying today he wanted a lasting impact.
Mr McGowan revealed an expected $2.6 billion operating surplus for the 2022 financial year yesterday, after windfall royalty revenue from the iron ore industry thanks to a high export price.
The government also reset its infrastructure priorities, with more than $30 billion to be spent across the next four years.
Some of the state’s biggest projects will be in years ahead.
The showcase project announced yesterday was a third desalination plant, with $1.4 billion to be put aside ahead of the development of a business case.
It is not clear when construction will start, although the government has said it could be as soon as 2025.
Mr McGowan told the Business News Post Budget Breakfast today he did not want to waste the state’s success.
“I know a desalination plant doesn't really excite people, but it's going to have to be done,” he said.
“So why not use the success of today to set the money aside so we don't have to borrow.
“Those types of things are sensible.
“When you look back in 20 years or 30 years, we didn't actually use the success of today on things that don't last.
“That’s our intention.”
Criticism
Shadow Treasurer Steve Thomas said the wealth had not arrived recently so there was no excuse for problems in the state.
“How can we have a health crisis, a housing crisis and a skills crisis after thirty months of boom that has poured rivers of gold into Labor’s treasury,” Dr Thomas said.
As part of the budget, about 650 new hospital beds are planned; while an additional $750 million will be spent on social housing.
Mr McGowan said there had been pressure on the health system across the country.
“Last year at the height of the pandemic, a lot of people didn’t go to hospital,” he said.
“When we came out of that… it went through the roof.”
There were also issues recruiting nurses and high absenteeism because medical staff could not come in to work when sick during the pandemic.
These could not have been predicted before the pandemic, he said.
Mr McGowan said the state spent 18 per cent more than the national average on health.
On social housing, the government has been criticised for a reduction in the number of available social housing dwellings in the state.
“When we came to office… a lot of social housing was unlivable,” he said.
“There were tower blocks that were like the projects in New York, the Brownlie Towers.
“We demolished them because you couldn't live in them.
“That reduced the (level) of social housing out there… but we’re investing in new ones.”
