Mines and Petroleum Minister Bill Johnston shut down claims that the state government would open plans to coal mine in Margaret River for a greater share of GST.
It was reported on Monday that “the state government would have to abandon its ban” on fracking and coal mining in the South West and Margaret River if WA wanted more GST.
The WA Government had raised concerns to the federal government that WA had not received its fair share of GST receiving only 34 cents in each dollar it gave to the federal government.
Other states received a much higher proportion of GST such as NSW which received 90 cents for every dollar it paid, QLD received $1.17, Tasmania received $1.78 for each dollar it gave and the NT were paid $5.28.
In response to complaints received from the states, Treasurer Scott Morrison opened the Horizontal Fiscal Equalisation inquiry to look at how GST is shared among the states
On the Productivity Commission’s website it states that under the current method the GST was distributed on the basis of relativities recommended by the independent Commonwealth Grants Commission.
In calculating the relativities, Mr Morrison said on the Productivity Commission’s website the CGC assessed each state's ability to generate revenue and costs of providing government services.
Mr Morrison said there were some commentators which said some states were being deterred from reform which could boost revenue raising capacities.
As part of the inquiry, Mr Morrison said on the Productivity Commission website that the inquiry would look at state laws and policies which restricted the development of energy resources.
Minister Johnston said he was surprised the Liberal Party raised the issue and put in doubt concerning the ban on coal mining in Margaret River.
“The 2012 ban on coal mining in the Margaret River region had bipartisan support,” he said.
Mr Johnson said the Environmental Protection Authority deemed Margaret River to be unacceptable for coal mining and the McGowan Government had no plans to adjust that arrangement.
“The people of the South West, Perth and Peel regions strongly backed our commitment to ban fracking in those areas. The fracking ban is now in place,” he said.
“Under the current GST model WA has been punished for its success in developing the state’s resource base.
“Our Productivity Commission submission is about reforming the system to increase incentives to develop local projects.
“However each project should be judged on its own merits.”
