Changes in the global economy and the strong Australian dollar have impacted significantly on the State's revenue from mining and petroleum royalties affecting the State Government's Royalties for Regions program for the remainder of the 2009-10 financial year.
Acting Regional Development Minister Terry Waldron said the Government's Mid-Year Review detailed a reduction in royalty income, affecting the 2009-10 Royalties for Regions program.
Forecast royalty income in the 2009-10 financial year has been revised down from more than $2.5billion at State Budget time, to $2billion, resulting in a downward adjustment to the Royalties for Regions program of $130million," Mr Waldron said.
"This is in line with the Royalties for Regions agreement which equates to 25 per cent of the State's royalties.
"The program is intrinsically linked to the royalty flows and adjustments will need to be made accordingly As a result, $130million of recurrent funding has been deferred this financial year.
"Despite the adjustment, this year's Royalties for Regions program retains its positive outlook with estimates for the out years looking strong."
The major deferral in 2009-10 is $90million to the Country Local Government Fund Stage Two, which was scheduled to be distributed in May 2010. There will be an allocation of $10million this year to assist councils with planning their infrastructure needs with the remainder being distributed from July 1, 2010 for expenditure on capital works.
"We worked closely with the Department of Treasury and Finance to manage the State's changed revenue position in 2009-10," the Minister said.
"The adjusted cash flow for the Mid-Year Review allows us to seek State Cabinet approval for $58million in unspent capital works to be realigned to the Pilbara Revitalisation Plan and Pilbara Cities program to maintain the momentum in that crucial revenue-producing region.
"We support projects right across regional WA and I am confident Royalties for Regions will continue delivering major benefits to those living, working and investing in the regions."
Mr Waldron said $48.9million had been allocated under the Regional Grants Scheme for 2009-10 with contestable grant applications scheduled to close on February 10, 2010.
"The Royalties for Regions Bill has successfully passed through both Houses of State Parliament and has received Royal Assent and I look forward to this program continuing to serve the special needs of regional WA," he said.
Minister's office - 9213 7000
