Ian Goodenough (Moore, Liberal Party) Share this | Hansard source

I am pleased to add to the contributions of fellow members on the role of Western Australia within the Commonwealth. As a proud Western Australian, I'm a federalist who believes in preserving the rights of the states which formed the Commonwealth at Federation. Western Australia is an economic powerhouse which punches well above its weight. Western Australia, with a population of 2.57 million residents in 2016, represented just 11 per cent of the Australian population but accounted for 42 per cent of Australia's merchandise exports and 24 per cent of Australia's business investment. Western Australia's gross state product of $239.7 billion in 2015-16 represented 14.5 per cent of Australia's gross domestic product. Our gross state product per capita of $92,056 in 2015-16 was 33 per cent above Australia's GDP per capita of $69,134. Western Australians are consistently achieving at higher levels than most of our other productive Australians. Western Australia is the main minerals and petroleum exporting region of Australia. WA accounted for 55 per cent of Australia's mining gross value added in 2015-16. WA accounted for 53 per cent of world seaborne exports in 2016. Our state is certainly an economic powerhouse.

Our state has been penalised for its strong economic performance by the Commonwealth Grants Commission GST distribution formula, as Western Australia effectively subsidises the other less economically performing states in our federation. Currently, WA receives just 34 cents in the dollar in GST revenue returned.

The government has commissioned a review by the Productivity Commission, which is due to report early in 2018. A greater share of GST distribution will strengthen WA's ability to invest in productive infrastructure, further increasing our state's economic-producing capacity. Options such as a GST floor and a per capita GST funding distribution model must be explored. The Commonwealth must ensure equitable funding arrangements for all states, including Western Australia. In particular, the declining share of revenue from Commonwealth based taxes, such as the goods and services tax, and royalties needs to be addressed as a priority.

The remoteness and tyranny of distances in Western Australia make for costly infrastructure to support these industries. Since its election, the coalition government has committed $6.8 billion to fund infrastructure projects in WA, leading up to 2021. The WA infrastructure package is being funded partially from the $1.2 billion previously allocated to the Perth Freight Link. A further $226 million was announced in the 2017-18 budget to address WA's GST shortfall. This adds to the top-up payments of $499.1 million paid to WA in June 2015 and $490 million in June 2016. Projects such as the Mitchell Freeway extension, which was funded to the tune of $209.1 million in my electorate are examples of this.

The government's $1.6 billion investment in the $2.3 billion WA infrastructure package announced on 7 May will support 17 new projects and provide a major boost for the WA economy, with around 6,000 jobs expected to be supported. The government's investment in the WA infrastructure package includes $792 million towards the Metronet proposal to upgrade and expand the Perth metropolitan rail network, including projects such as extending the railway line from Butler to Yanchep and Thornlie. Constructing the dual carriageway on Wanneroo Road between Joondalup Drive to Flynn Drive to coincide with the Neerabup Road extension and the opening of the Mitchell Freeway is an example of another local project in my electorate. The Australian government has also committed to funding key upgrades within the Perth metropolitan area to develop an efficient and safe freight network.

See this speech in context