ID :
123309
Fri, 05/21/2010 - 05:52
Auther :
Shortlink :
http://m.oananews.org//node/123309
The shortlink copeid
WA premier delivers budget surplus
West Australian Premier Colin Barnett has delivered a state budget in surplus by
$290 million but has hit households with big hikes in electricity and water charges.
The average WA household will be slugged nearly $370 a year following Thursday's
budget.
The budget held no other major tax or stamp duty increases and some big spending
announcements for health, education and major infrastructure projects.
The $290 million surplus is markedly above the $51 million surplus tipped in
December in the state treasury's mid-year review.
Boosted iron ore royalties, higher tax and stamp duty receipts and a
higher-than-expected GST take from the federal government helped deliver the
surplus.
Mr Barnett, who is also acting treasurer, said a disciplined effort by his
government to rein in expenditure was a key driver of the surplus.
"I am very proud of these results because they signal our confidence going forward,
reduce our reliance on debt and mean we can maintain the state's triple-A credit
rating," he told parliament.
But the premier was slammed by the opposition, unions and community groups for the
utility price increases.
Electricity tariffs rose by 7.5 per cent on April 1 and will rise a further 10 per
cent on July 1.
Water charges for an average household will rise by 17.7 per cent in 2010/11.
Mr Barnett said these charges plus a 2.8 per cent increase in public transport fares
would add about $368 to the average household budget each year.
To offset the increased burden on struggling families, the government's Hardship
Utilities Grant Scheme payments would increase from $380 to $450 a year from July 1.
Mr Barnett said he was mindful of the impact of the higher charges on households and
thanked West Australians for sharing the burden of belt-tightening so charges would
more closely reflect the cost of supply.
Opposition Leader Eric Ripper labelled the budget "cold comfort for West Australian
families" and said the utility price hikes would put unnecessary stress on families.
"Colin Barnett should have protected West Australian families. We're a rich state
and in a rich state we should be looking after WA families.
"Mr Barnett has shown passion in defending big miners. If only he had shown the same
passion to protect Western Australian families," Mr Ripper said.
WA Council of Social Services chief executive Sue Ash questioned how some families
or pensioners on fixed incomes would cope when many already found it difficult to
keep up with their utility payments.
Liquor, Hospitality and Miscellaneous Union (LHMU) WA Secretary David Kelly said Mr
Barnett's surplus had been delivered on the backs of low-income earners.
"He should really be embarrassed that surplus is built on the increases in
electricity, increases in water and past increases in gas."
Mr Barnett projected more healthy surpluses ahead, reaching $807 million by 2012/2013.
But he warned that the recovery from the global financial crisis remained fragile
and took a swipe at Canberra's new tax on mining companies' super profits.
" ... The federal government's recent announcement of a 40 per cent resource rent
tax in Australia and ongoing Eurozone jitters show there is still uncertainty
domestically and abroad," the premier said.
The federal government's new resources tax had not been factored into the budget,
nor had the WA government's planned increases in mining royalties, Mr Barnett said.
A record health spend of $5.6 billion is set for 2010/11, education will get $1
billion in spending on school infrastructure projects, and 100 extra police and
auxiliary officers will be provided.
Big-ticket capital spending by the state includes $383 million for an underground
Perth rail link, $339 million for the Oakajee deepwater port project, $220 million
for the Ord River irrigation project and $83 million for a new stadium in Perth.
The Pilbara Cities project in the state's resource-rich northwest will get $846
million in funding over the next four years to build an urban hub for a growing
population.
The premier stepped in as acting treasurer late last month after Troy Buswell
resigned over his use of ministerial entitlements during an extra-marital affair
with Greens MP Adele Carles.
$290 million but has hit households with big hikes in electricity and water charges.
The average WA household will be slugged nearly $370 a year following Thursday's
budget.
The budget held no other major tax or stamp duty increases and some big spending
announcements for health, education and major infrastructure projects.
The $290 million surplus is markedly above the $51 million surplus tipped in
December in the state treasury's mid-year review.
Boosted iron ore royalties, higher tax and stamp duty receipts and a
higher-than-expected GST take from the federal government helped deliver the
surplus.
Mr Barnett, who is also acting treasurer, said a disciplined effort by his
government to rein in expenditure was a key driver of the surplus.
"I am very proud of these results because they signal our confidence going forward,
reduce our reliance on debt and mean we can maintain the state's triple-A credit
rating," he told parliament.
But the premier was slammed by the opposition, unions and community groups for the
utility price increases.
Electricity tariffs rose by 7.5 per cent on April 1 and will rise a further 10 per
cent on July 1.
Water charges for an average household will rise by 17.7 per cent in 2010/11.
Mr Barnett said these charges plus a 2.8 per cent increase in public transport fares
would add about $368 to the average household budget each year.
To offset the increased burden on struggling families, the government's Hardship
Utilities Grant Scheme payments would increase from $380 to $450 a year from July 1.
Mr Barnett said he was mindful of the impact of the higher charges on households and
thanked West Australians for sharing the burden of belt-tightening so charges would
more closely reflect the cost of supply.
Opposition Leader Eric Ripper labelled the budget "cold comfort for West Australian
families" and said the utility price hikes would put unnecessary stress on families.
"Colin Barnett should have protected West Australian families. We're a rich state
and in a rich state we should be looking after WA families.
"Mr Barnett has shown passion in defending big miners. If only he had shown the same
passion to protect Western Australian families," Mr Ripper said.
WA Council of Social Services chief executive Sue Ash questioned how some families
or pensioners on fixed incomes would cope when many already found it difficult to
keep up with their utility payments.
Liquor, Hospitality and Miscellaneous Union (LHMU) WA Secretary David Kelly said Mr
Barnett's surplus had been delivered on the backs of low-income earners.
"He should really be embarrassed that surplus is built on the increases in
electricity, increases in water and past increases in gas."
Mr Barnett projected more healthy surpluses ahead, reaching $807 million by 2012/2013.
But he warned that the recovery from the global financial crisis remained fragile
and took a swipe at Canberra's new tax on mining companies' super profits.
" ... The federal government's recent announcement of a 40 per cent resource rent
tax in Australia and ongoing Eurozone jitters show there is still uncertainty
domestically and abroad," the premier said.
The federal government's new resources tax had not been factored into the budget,
nor had the WA government's planned increases in mining royalties, Mr Barnett said.
A record health spend of $5.6 billion is set for 2010/11, education will get $1
billion in spending on school infrastructure projects, and 100 extra police and
auxiliary officers will be provided.
Big-ticket capital spending by the state includes $383 million for an underground
Perth rail link, $339 million for the Oakajee deepwater port project, $220 million
for the Ord River irrigation project and $83 million for a new stadium in Perth.
The Pilbara Cities project in the state's resource-rich northwest will get $846
million in funding over the next four years to build an urban hub for a growing
population.
The premier stepped in as acting treasurer late last month after Troy Buswell
resigned over his use of ministerial entitlements during an extra-marital affair
with Greens MP Adele Carles.
