Extract from Hansard [ASSEMBLY — Tuesday, 16 February 2016] p77c-137a Mr Colin Barnett; Mr Roger Cook; Mrs Michelle Roberts; Mr Mark McGowan; Mrs Liza Harvey; Dr Tony Buti; Mr Peter Tinley; Mr Ben Wyatt; Ms Rita Saffioti; Mr Bill Johnston; Mr Peter Watson; Mr Paul Papalia; Mr Shane Love; Mr Dave Kelly; Ms Lisa Baker; Ms Libby Mettam PREMIER’S STATEMENT Presentation MR C.J. BARNETT (Cottesloe — Premier) [3.16 pm]: I rise to outline the Liberal–National government’s legislative and policy agenda for 2016—the eighth year of the government and the final year of the thirty-ninth Parliament. Bushfires: Unfortunately, once again I begin this Premier’s Statement noting the tragic consequences of recent major bushfires across the state. In November, fires near Esperance claimed four lives and burned more than 260 000 hectares of farm and bushland. In January, a massive fire near Waroona claimed two lives and razed the town of Yarloop, destroying some 181 homes and businesses. The effects of such devastation are heartbreaking, not least for the family and friends of those who died but also for the people who lost homes, animals and treasured possessions. I acknowledge and thank the efforts of all who fought the fires and the many thousands who supported those firefighting efforts, including volunteers. The government has appointed Euan Ferguson, former head of the Victorian Country Fire Authority and the South Australian Country Fire Service, to thoroughly investigate the response to the Waroona fire. The terms of reference for the investigation are wide enough to address issues relevant to the Esperance fire and other major events. Mr Ferguson’s report is expected by the end of April. In parallel with this investigation, former Western Australian Governor Dr Ken Michael is overseeing the recovery process for the Waroona fire. Elizabeth Quay: On a brighter note, Mr Speaker, the opening of Elizabeth Quay just over two weeks ago has seen thousands of Western Australians and tourists enjoy the Perth waterfront like never before. The 25 000 people there on the opening night and the 700 000 visits since are vindication of this government’s decision to proceed with this project. Other city projects: this year the city’s transformation will continue. The underground busport at Perth City Link will open midyear—a key part of the massive project of sinking the rail line between Northbridge and Perth— reconnecting the city’s business and entertainment areas for the first time in more than 100 years. At the heart of the link will be Yagan Square, a significant open space now under construction. It will be an important recognition of Aboriginal people in the centre of our city. City Link is on time and on budget and scheduled for completion mid–next year. Close by, at the rejuvenated Perth Cultural Centre, siteworks on the new world-class WA Museum will begin this year. The new Museum will be a major boost to our science and cultural standing. The city’s reach has been extended eastward with the construction of Perth Stadium and the Riverside development. The stadium is already 35 per cent complete. Perth is a different place because of the decisions made by this government to modernise the city and to get on and build infrastructure. We were being left behind. Today we have a vibrant, lively city that draws people in after hours to enjoy not only the restaurant and bar scene, but also festivals such as Fringe World and the Perth International Arts Festival. The passage of the City of Perth Bill this year will ensure that Perth has the status befitting one of the Asia–Pacific’s most liveable and modern cities. Regional development: The transformation has not just been in Perth. New hospitals, schools, sports grounds, recreational centres, roads and phone towers have improved the lives of people living in the regions. The government’s royalties for regions program has allocated $6.1 billion to more than 3 600 projects since 2008 to support growth and economic opportunities outside Perth. The government’s bold infrastructure plan has not just rebuilt the state; it has created thousands of jobs. Major government projects have employed more than 87 000 people since 2008. Economy: The creation of jobs from projects in both Perth and the regions has been important as the Western Australian economy comes off an unprecedented peak, with jobs in the mining and petroleum sector declining. This will be a difficult year for Western Australia’s economy. The state faces the dual challenge of a dramatic decline in commodity prices and a drop in goods and services tax revenue to depths never before seen in Australia. Living in a commodity-based economy, Western Australians understand that we are export driven and tied to Asia and commodity prices. We are used to cycles. In my years in public life, we have seen the share crash of 1987, which had an impact into the 1990s; the Asian financial crisis in 1997; the global financial crisis in 2008; and, now, the downside of a “super cycle” of record high commodity prices followed by a dramatic fall, particularly in iron ore and oil, the extent of which was not predicted by anyone. Western Australia has shown it can manage these external shocks, but this one is different. We cannot survive an unprecedented resources downturn as well as receiving just 30c back for every GST dollar paid by Western Australians. No other state in Australia’s history has had to put up with that. [1] Extract from Hansard [ASSEMBLY — Tuesday, 16 February 2016] p77c-137a Mr Colin Barnett; Mr Roger Cook; Mrs Michelle Roberts; Mr Mark McGowan; Mrs Liza Harvey; Dr Tony Buti; Mr Peter Tinley; Mr Ben Wyatt; Ms Rita Saffioti; Mr Bill Johnston; Mr Peter Watson; Mr Paul Papalia; Mr Shane Love; Mr Dave Kelly; Ms Lisa Baker; Ms Libby Mettam Several members interjected. The SPEAKER: Members! Mr C.J. BARNETT: Canberra and the Commonwealth Grants Commission are strangling Western Australia. If we were to get our per capita share of GST, we would be more than a billion dollars in surplus this year. Mr D.J. Kelly interjected. The SPEAKER: Member for Bassendean, I call you to order for the first time. You can have a general debate on this when the Premier has finished. Just hold on and listen to what the Premier has to say. Mr C.J. BARNETT: It is one thing to borrow to fund capital works when there is an asset to back up the debt, but we are now in a situation in which we are borrowing to pay other states our GST share and borrowing to pay for recurrent services, such as running schools and hospitals. Since 2008, an additional 400 000 people have made Western Australia their home. More than 90 per cent of the state’s debt has gone to build roads and rail, poles and wires, water infrastructure, hospitals, schools and sports facilities to accommodate this growth. Projects such as Elizabeth Quay and Perth Stadium make up just 2.4 per cent of total debt. We have also made decisions to increase funding to support the most vulnerable in our community: people with disabilities, those facing mental health challenges and children in state care. As Premier, I make no apologies for that at all. The government continues to work hard to keep expenditure under control with savings measures such as containing public sector wages to the consumer price index, a recruitment freeze in the public service and agency expenditure reviews. But there is a limit to cost cutting, and the sale of government assets to stabilise and retire debt becomes the only alternative. Asset sales: Last week, the sale of the Perth Market Authority to Perth Markets Limited for $135 million was completed. This is a good result for the taxpayers of Western Australia and for the future growth of the fruit and vegetable industry. The Pilbara Port Assets (Disposal) Bill to enable the sale of Utah Point in Port Hedland will be the first piece of legislation debated in this house this year. The sale should be completed later this year. We will continue with our program of selling surplus government land. More than 400 properties worth around $460 million are earmarked for sale. The government has been investigating options for a partial divestment of Keystart’s loan book, and consultation with the racing industry about the sale of the Totalisator Agency Board continues. This year, we will introduce a bill for the long-term lease of Fremantle port. We may also have to look at other assets, including Western Power. The way forward: Every government in Australia is under financial stress—every government. Despite our own difficult financial situation, the fundamentals of the Western Australian economy are strong. We have the world’s leading mining economy and two of the world’s biggest LNG projects under construction. The $55 billion Gorgon gas project will be completed this year and the $30 billion Wheatstone project will come into production in 18 months. Within this decade, LNG production will have trebled to make Western Australia the world’s second largest LNG producer, and iron ore production will have more than doubled. Western Australia will continue to dominate Australia’s exports. The mining and petroleum sector will continue to grow, just not at the pace of the past 10 years. Increasingly, more of our economic growth will come from sectors other than mining, such as agriculture, tourism, education and health services, and science and innovation. For us, the driving force is Asia, with its extraordinary population growth, rising incomes and urbanisation.