WA should pay its fair share of GST: Evans

Federal Senator Chris Evans says Western Australia should contribute its fair share of GST revenue during boom times to make up for its past reliance on other states.

But WA Premier Colin Barnett says his state has more than repaid its debt to the nation and is now being taken for a ride.

As Mr Barnett shaped up to Prime Minister Julia Gillard over WA’s share of GST revenue at the Council of Australian Governments (COAG) meeting on Friday, Senator Evans said the premier had squandered opportunities to invest in the state’s future and should stop blaming Canberra.

“The reality is, he came into power with a very good budgetary position, with a very strong economy, and he’s failed to invest in the future of the state,” Senator Evans told AAP in Perth on Friday.

The WA senator said while his state was entitled to seek its fair share of GST revenue – which will fall from 72 cents in the dollar to 55 cents from July 1 – it shouldn’t forget the many years it relied on federal handouts.

“For many years WA relied on getting a larger share than we generated of national wealth through the grants processes,” he said.

“At the moment we’re doing better, and therefore contributing surplus to the broader national effort.

“But these things are swings and roundabouts and we benefited for many years.

“I think most West Australians accept that we have to support the national interest, and that while WA’s going strongly we might have to carry more of the load,” Senator Evans said.

But Mr Barnett described WA’s revenue share as “grossly unfair”, saying the split should be population based.

“For the coming financial year, 2012-13, Western Australia has had its GST payments cut by $600 million, whereas Queensland, NSW and Victoria have all had increases of over $1 billion,” Mr Barnett told AAP.

“Western Australia has 2.4 million people – we receive next year $2.9 billion.

“The Northern Territory has 280,000 people, and they will also receive $2.9 billion.

“That is grossly unfair.”

The WA premier also denied he had squandered economic opportunities.

“The Liberal-National government and myself were elected right at the time of the global financial crisis,” he said.

“We’re spending nearly $8 billion in capital works each year – a major investment in infrastructure of this state.”

Mr Barnett said it was true WA had received benefits from other states for “a significant number of years”.

“But since then, we have more than paid back every dollar we have ever received,” he said.

He said he was “disappointed” by Senator Evans’ comments and suggested he should be doing more to stand up for WA’s interests.

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