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West Australian
12 hours ago
- Business
- West Australian
Joe Spagnolo: Roger Cook moves on from Mark McGowan's Labor
It appears Roger Cook is going all out to ensure the public is aware there is a new sheriff in town, and that Mark McGowan is well and truly part of Labor history. The current Labor government, in terms of office and administrative personnel, has little resemblance to the one McGowan presided over. Cook has, for example, replaced his entire media team and appointed a new chief of staff since the March election. And there was further evidence of transformational Labor in Thursday's State Budget. Labor has finally stopped banging on about McGowan's Metronet, although project chief Rita Saffioti still resides over the remaining elements of the rail project — now eight years old — as Transport Minister and Treasurer. Instead Cook, keen to leave his own legacy, is embarking on what he and Saffioti call a 'poles, pipes, ports and wires' era, which will see billions spent on new infrastructure, enabling WA to hopefully begin a new era of diversification, and safeguarding itself against its reliance on iron ore exports and China's economy. If McGowan's catchcry was Metronet, Cook's and Saffioti's is diversification. From here on, Labor will begin its Budget sell to the public, and in doing so begin the sell of a re-elected Labor Government keen on reinventing itself and positioning itself for a fourth term of government by winning the 2029 State election. But reinvention comes with political risk. And we've seen that in this Budget, with Cook and Saffioti rolling the dice and deciding to shelve Labor's annual power bill credits — which, incidentally, McGowan commenced in 2020. Remember as a kid you would sit around a Christmas tree eagerly awaiting your presents? You either loved the gifts or were disappointed once you unwrapped the offerings. CCIWA chief economist Aaron Morey loved what was under Saffioti's 'Christmas tree', citing Taylor Swift as he applauded big spends in ports, energy and water. 'A bit like Taylor Swift, the Government is shifting to a new era of infrastructure spend. We're moving from the Roads Era to the Industrial Era,' Morey said. But welfare groups are not singing Swifty songs today. In addition to power and water hikes of 2.5 per cent, car licence charges have gone up 3.9 per cent and driver's licence fees have gone up 2.9 per cent. These are not huge increases by any means. But the optics of these increases aren't great for a government that on Thursday announced a forecast $2.5 billion surplus for this financial year and a forecast $10 billion in surpluses through to 2028-29. 'We were disappointed not to see a total freeze on increases in fees and charges, particularly utilities, electricity and water, but also on transport licenses,' Anglicare WA Acting CEO & Director of Services Philippa Boldy said on Friday. 'By increasing fees and charges, people are getting further behind instead of getting an opportunity to move forward. If we take more money out of the pockets of people that are already struggling for the essentials they need to live, we're not being fair with WA's growth and the economic strength.' Sure: the Government has softened the blow by announcing other initiatives such as the capping of public transport fares to one zone, saving some families and estimated $625 a year. But getting rid of a measure that shaves about $400 a year from household power bills in the midst of an ongoing cost-of-living crisis is a big call. What Cook is banking on is that West Australians will accept that investing in the future of WA will reap big benefits for the adults of tomorrow and generations to come. This is a Budget for the future. And in that sense Cook and Saffioti need to be applauded for recognising the fact that the rivers of gold — courtesy of iron ore exports to China — may well dry up into the future. But more needs to be done to help WA's vulnerable who right now aren't singing Swifty tunes, but belting out 'Under Pressure' along with Davie Bowie and Freddie Mercury.
West Australian
3 days ago
- Business
- West Australian
Paul Murray: State Budget surpluses haven't been planned, they're the result of a run of historic luck
Rita Saffioti would be praying for some good news after a week from hell. She's had to deal with the disclosure of massive cost increases in the Government's IT projects — the biggest one in her transport portfolio, which she oversees despite the obvious conflicts as Treasurer, and the news that her locally-assembled Metronet railcars are not fit for use, according to the unionists who drive them. So she'd also be hoping people think all the cash she doles out in this 'Made in WA' Budget will be better handled. And that no one mentions blowouts. When Saffioti got the job two years ago, the State's net debt was $28.3 billion. This Budget takes it to $42.5b by 2028-29 — a 50 per cent increase — while still predicting annual cash surpluses. Treasurers who can't control debt in times of unprecedentedly high revenues don't deserve applause. That's the bad news, Rita. Digging deep into the Budget papers it is apparent that much of this mounting debt is to fund the net zero emissions transition, although a single figure for the massive cost is elusive due to the scattered details of 'public non-financial corporations sector net debt' and multiple subsidies. Saffioti's speech drew parallels with other States' finances that are as nauseous as they are provocative for those planning to torch WA's special GST deal. 'WA's net debt as a percentage of Gross State Product is expected to be 9.1 per cent at the end of the budget year — compared to an average of over 20 per cent across the other states and the Commonwealth,' Saffioti said. She forgot to say it was 6.2 per cent when she became Treasurer and will be 9.5 next year. That's the measure of her profligacy. Other State governments would love her good fortune — other than basket-case Victoria — most would probably handle the revenue windfalls far more responsibly. 'This Budget reinforces the walls of fortress WA,' Saffioti said, channelling Mark McGowan. She will need a fortress to fight off the other State treasurers infuriated by her boasting. 'Our domestic economy has grown by almost 26 per cent over the past five years, well above the 16 per cent growth nationally.' But that's nothing more than a demonstration of her historic luck. Her surpluses are built on booming iron ore prices that will not be there when her over-spending makes our debt peak. Most people don't realise how much luck contributes to Saffioti's books. She now receives more than double the revenues enjoyed by the Barnett government in its last years thanks to inflated royalties and the generous GST deal. After last year's Metronet-affected blowout in spending by 10.6 per cent, this year's increase is lower at 4.3 per cent, before falling by 5.9 per cent in 26-27. Those businesses feeling the squeeze that government over-spending puts on the labour market are having quite a rollercoaster ride.
The Age
3 days ago
- Business
- The Age
Power bill help ditched in WA Labor's big-spending infrastructure budget
The Cook government has done away with its flagship cost of living-beating $400 power credit as it seeks to convince those not feeling the benefits of the state's current prosperity that more targeted measures will do the trick. Labor's ninth budget – Treasurer Rita Saffioti's second – has delivered a $2.5 billion operating surplus this year and more operating surpluses over the next four years from $2.4 billion in 2025-26 to $2.8 billion by 2029. However, state spending continues to skyrocket and cash deficits are driving growth in state debt as the government pivots from road and Metronet spending to ports, poles and wires. Premier Roger Cook said the budget delivered on his 'Made in WA' plan promised at the state election in March, which aimed to diversify WA's economy away from its reliance on iron ore. 'This budget keeps Western Australian ambitions on track,' he said. The government will spend $963 million extra on cost of living support for WA households – but that will not include a state-funded power credit that has featured in the past four budgets. Instead, Saffioti pointed to items like the $150 Commonwealth-funded power credit and the already announced $337 million residential battery scheme as evidence it was helping address power bill prices. On broader cost of living support, Saffioti pointed to the $89 million school assistance payment currently on offer to parents of school children, and the $2.80 flat Transperth and TransWA fare due next year, which will cost $152 million. This flat fare has helped bring down how much the average household pays in government fees and charges by 0.8 per cent from $6617 to $6565.
Sydney Morning Herald
3 days ago
- Business
- Sydney Morning Herald
Power bill help ditched in WA Labor's big-spending infrastructure budget
The Cook government has done away with its flagship cost of living-beating $400 power credit as it seeks to convince those not feeling the benefits of the state's current prosperity that more targeted measures will do the trick. Labor's ninth budget – Treasurer Rita Saffioti's second – has delivered a $2.5 billion operating surplus this year and more operating surpluses over the next four years from $2.4 billion in 2025-26 to $2.8 billion by 2029. However, state spending continues to skyrocket and cash deficits are driving growth in state debt as the government pivots from road and Metronet spending to ports, poles and wires. Premier Roger Cook said the budget delivered on his 'Made in WA' plan promised at the state election in March, which aimed to diversify WA's economy away from its reliance on iron ore. 'This budget keeps Western Australian ambitions on track,' he said. The government will spend $963 million extra on cost of living support for WA households – but that will not include a state-funded power credit that has featured in the past four budgets. Instead, Saffioti pointed to items like the $150 Commonwealth-funded power credit and the already announced $337 million residential battery scheme as evidence it was helping address power bill prices. On broader cost of living support, Saffioti pointed to the $89 million school assistance payment currently on offer to parents of school children, and the $2.80 flat Transperth and TransWA fare due next year, which will cost $152 million. This flat fare has helped bring down how much the average household pays in government fees and charges by 0.8 per cent from $6617 to $6565.
Perth Now
4 days ago
- Business
- Perth Now
Locals demand new train station amid ‘unacceptable' traffic
A 2km-long traffic snarl has renewed calls for more public transport and freeway entries in South Perth. In a social media post, City of South Perth councillor Nic Covenery shared an image of cars which he said were banked up on Mill Point Road from Wesley College all the way to the freeway entry. He said there was a crash that caused the significant back-up that morning but he frequently saw heavy traffic on the road. Your local paper, whenever you want it. 'This is not unfamiliar for residents in the mornings and afternoons during peak hour,' Cr Coveney said. 'This is unacceptable.' The State Government has invested $1.4 billion for Metronet in the 2024-25 budget and is estimated to cost $12.4b on completion. South Perth is not included in those plans. Traffic on Mill Point Road at 7am, backing up to Wesley College from the freeway entrance. Credit: Facebook 'We are no closer to the South Perth train station,' Cr Coveney said. 'If the State Government wants more high-rise development, it must provide the infrastructure to support it.' Commentators shared their frustrations and ideas to help combat the huge traffic congestion in the area. 'Freeway entry at South Terrace and a ferry stop at Coode Street would help, as well as a South Perth train station,' one said. 'We really need a northbound freeway on-ramp from South Terrace, only have one way to get onto the freeway — via Mill Point Road.' 'It causes traffic to back up badly because the freeway's already busy, and having just one access point makes it worse,' another said. One commentor suggested Cr Coveney make an appointment with South Perth MLA Geoff Baker to discuss the issue. Cr Coveney said Mr Baker had not responded to any of his queries about traffic-related issues, including the train station and ferries. South Perth MLA Geoff Baker. Credit: Geoff Baker Mr Baker told PerthNow he understood the concerns about traffic on Mill Point Road, but believed South Perth had some of the best public transport connections in the city which helped reduce a lot of the congestion the city experiences. 'The incredible new Boorloo Bridge is also offering new active transport opportunities for people in our community to get in and out of the city,' Mr Baker said. 'We've also delivered the Smart Freeway system on the Kwinana Freeway, which has significantly improved traffic movement on the freeway, facilitating easier access at the Mill Point Road on-ramps.' Mr Baker said the State Government was targeting the worst traffic spot in South Perth with two projects. 'First is the Canning Bridge interchange upgrade, to remove buses from the interchange bridge and increase the numbers of public transport connections,' he said. 'The second is building Metronet on Swan, which will link Canning Bridge to UWA and Elizabeth Quay by ferry. These two projects will free up traffic over Canning Bridge and take cars off the freeway.' City of South Perth mayor Greg Milner said advocating for better public transport infrastructure to reduce demand on the local road network was a priority for the city. 'The city has advocated for a South Perth train station for many years,' he said. 'In addition to the introduction of a South Perth train station, the city also advocates for an improved ferry service at Mends Street Jetty and higher frequency bus routes to provide better access to more efficient public transport for people who live, work and visit South Perth.' Mr Milner said the State Government committed to building a train station in South Perth in 2002 when the Perth to Mandurah railway line was first proposed. Since then the population in the area has 'significantly increased' but a South Perth train station has not been built. 'The population of the City of South Perth is projected to grow to 65,842 by 2041,' Mr Milner said. 'As the capacity of the road network and the ability to increase this capacity is limited, there is an increasing need to reduce reliance on private vehicles and focus on shifting travel behaviours to active (pedestrian and cyclist) and public transport modes. 'While the city can provide upgrades to footpath and cycling networks, the delivery of a South Perth train station, improved ferry service and higher frequency bus routes are essential projects we are asking the State Government to consider. 'In the absence of this vital infrastructure, higher levels of congestion will continue to occur in peak periods.' PerthNow contacted Transport Minister Rita Saffioti for comment. Mr Milner said the City of South Perth would continue to advocate to the State Government for this 'vitally important transport infrastructure.'
