WA premier delays mining royalty rise

West Australian Premier Colin Barnett has been busy slamming Canberra's new mining
tax and he is set to dodge claims of being two-faced when he delivers the state
budget minus mining royalty increases.
He had been expected to slug the two mining giants BHP Billiton and Rio Tinto with
royalty rate increases in Thursday's budget but that has been put on hold while
negotiations continue.
Mr Barnett has been a vocal critic of the federal government's 40 per cent tax on
mining company super profits, saying it will reduce mining investments and curb
economic growth and jobs in WA.
Australia's lone Liberal premier copped flak from Prime Minister Kevin Rudd for
opposing the federal tax while preparing to boost mining royalties for his own
state.
Mr Barnett says his planned extra royalty take from BHP and Rio Tinto is a
completely different matter from the super profits tax.
The new rate will simply take them onto the industry standard of 5.625 per cent and
off a concessional rate they've enjoyed for many years for pioneering iron ore
extraction in the state, he said.
"These negotiations with BHP and Rio have not been finalised, I hope they will be by
June 30," Mr Barnett told reporters on Wednesday.
"I only put things into the budget when they are set in concrete. That is not set in
concrete."
Mr Barnett had to step into the acting treasurer role late last month after Troy
Buswell was forced to resign over the use of ministerial entitlements during his
extramarital affair with Greens MP Adele Carles.
The affair became public over the Anzac weekend and appears to have cost Mr Buswell
his marriage as well as his high-profile job.
Thursday's budget will still largely be Mr Buswell's work but he will be sitting on
the back bench when it's delivered by the premier.
When Mr Barnett came to power in 2008 he vowed he would never preside over a budget
in deficit. Thursday's budget is expected to show a modest surplus.
The government has embarked on cost cutting in the public sector and consumers will
be hit with big jumps in the prices they pay for electricity, gas and water.
On Wednesday Mr Barnett said the budget would "put the finances of the West
Australian government in good shape".
One cost-saving plan already flagged is to consolidate government departments into
fewer sites and leases to achieve savings of $20 million to $25 million a year by
2015.
The government has also flagged more funding of community sector groups to deliver
services for the disabled, homeless and other vulnerable groups rather than
government agencies.
Opposition Leader Eric Ripper has slammed that policy, saying the government was
trying to get social services delivered on the cheap.
Mr Ripper has also criticised the government over "savage increases" in energy bills.
Mr Barnett has blamed the former Labor administration for the need to boost energy
prices to cover the cost of generation and supply.
When asked on Wednesday if he would deliver next year's budget, the premier said he
didn't think so.
"This is my one shot at it," he said.