Latest private new capital expenditure figures pleasing

24/4/94

Premier Richard Court today said he was pleased with the release of the latest private new capital expenditure figures for the December 1993 quarter which were the highest recorded in Western Australia since surveys began in 1979.

"The value of private new capital expenditure in WA rose by 37.7 per cent in the December quarter which was nearly ten times the national increase of 4.1 per cent," he said.

Mr Court said the rise in new private capital expenditure was due to a surge of investment in new buildings and structures (+51.5 per cent) and a substantial rise (+24.2 per cent) in investment in equipment, plant and machinery.

"During the December quarter, WA accounted for some 25 per cent of all private new capital expenditure in Australia, with new investment in WA totalling $1.7 billion," the Premier said.

"Overall, during 1993 private new capital expenditure in WA rose by 30.2 per cent which was the highest recorded by any State and compared with a national increase of 4.2 per cent.

"During last year in WA there was strong growth in investment in finance, property and business services sector (+142.3 per cent), the mining sector (+44.4 per cent) and in other selected industries, including the construction and retail industries (+23 per cent).

"The importance of the mining sector to WA's total investment growth is underlined by the fact that it accounted for well over half of total new private capital expenditure in WA during last year.

"This important point is continually ignored by the Federal Labor Government which is now prepared to risk WA's economic prosperity as well as the interests of the national economy by attempting to impose its Native Title legislation on this State.

"Victoria was the only other State in Australia which recorded an increase in new private capital expenditure in Australia last year, so WA and particularly the mining sector is now critical to the long-term economic recovery of Australia."