Growing economy: investing in infrastructure, jobs and tourism

8/5/03
The State Budget delivered today will build on an already booming Western Australian economy.
The Budget revises upward economic growth forecasts for 2003-04 from four per cent to 4.5 per cent.
Growth for this year has been revised from three per cent to 4.25 per cent.
Nearly 22,000 jobs will be created in 2003-04 with the State Government on target to reach 125,000 new jobs during the next five years.
Treasurer Eric Ripper cited strong business investment as an example of the State's economic credentials.
"Business investment is expected to grow by 10 per cent," Mr Ripper said.
"This will be the third consecutive year of growth in business investment and contrasts starkly with three years of decline under the previous Government.
"With current global uncertainty, Western Australia is seen as a stable and attractive place to invest."
The March quarter Access Economics Report released yesterday confirmed the strong investment activity.
The report showed $14.4billion worth of investment was either committed or under construction in WA. This is the highest level ever and WA continues to have a 25 per cent share of total current and potential investment in Australia.
The 2003-04 State Budget will continue to provide the stimulus for continuing investment and job creation through a number of key initiatives underpinned by a record $3.5billion capital works program.

Tourism
Despite recent international events, the State Government believes WA remains a safe, attractive and exciting place to visit and tour.
For this reason, the 2003-04 State Budget contains a solid injection of tourism-based funding.
"The jobs and investment generated by tourism makes it an important industry for WA and that is why it is a key focus of the Budget," Mr Ripper said.
Eventscorp will be allocated more than $12million to host major events in WA in 2003-04.
These include: UCI BMX Championships; Telstra Rally Australia; 2003 National Masters Australian Football Carnival; Rugby World Cup; Perth International Gold Tournament; Hyundai Hopman Cup; Aust/ NZ Police and Emergency Games; and the
Salomon Masters @ Margaret River.
These events are forecast to return a direct benefit of $30.4million to the local economy.
One of the major tourism projects for the State is the $150million Perth Convention and Exhibition Centre. This is due to open in July next year and will significantly increase the State's capability to generate meetings, conventions and a lucrative exhibition business.
Country centres will also benefit with more than $2million provided to regional tourism associations.
The South-West will also receive $8million for facility upgrades, job creation projects and new national parks.
The State Government has also played a pivotal role in making WA a more attractive destination for Emirates Airlines.
The Government's determination paid off last week when Emirates announced it would commence daily flights between Dubai and Perth. This decision has the potential to generate an extra $40million in tourism income for the State.

Projects
The Western Australian economy is leading the nation with the State Government creating a climate conducive to strong business and infrastructure investment.
"We have made new investment, new projects and job creation a focus for this Government and there is now evidence it will pay dividends," Mr Ripper said.
Big Government and private projects coming on stream or due to come on stream in 2003-04 include:

• commencement of the $400million Hismelt project;

• more than $75million of the $137.6million common user infrastructure package allocated for industrial development on the Burrup Peninsula to service Burrup Fertilisers' $630million ammonia plant, which is to commence production in mid-2005;

• an expenditure program of $395.4million by Western Power, including $36.3million on Cockburn 1, which is due to be commissioned next year;

• Water Corporation capital works spending of $462.8million;

• rail infrastructure worth $261.4million; and

• port upgrades worth $98million, including $18.5million on infrastructure associated with the HIsmelt project at Kwinana and $22.4million by the Geraldton Port Authority to complete the $107.7million port enhancement project.

Electricity Reform
This financial year, the Government is pressing ahead with electricity reforms to help attract new investment, promote economic growth and create thousands of new jobs.
For a resource-based economy like Western Australia's, lower electricity prices are essential to improve our competitiveness and to grow our economy.
This will be the most important economic reform in the Gallop Government's first term.

Primary Industry
In terms of primary industry, Mr Ripper said the agrifood sector contributed more than $8billion to the State's economy each year and created jobs for more than 11 per cent of the workforce or 105,000 people.
In 2003-04, highlights include:

• $37million for biosecurity research, development and protection, $28million for agricultural resource management and $45million for plant industries;

• $47million to ensure WA maintains its international standing as a leader in fisheries management and research;

• development of a new $15million Fisheries Research and Community Education Centre at Hillarys Marina, providing a major boost for marine science and sustainable management; and

• backing of the Forest Products Commission's $5.2millon reforestation program by preparing a new legal framework for registration of carbon rights to help attract investment.

Small business
Fostering WA's small business base is also a Government priority.
Existing and ongoing initiatives include:

• implementing a home-based business program involving workshops, network events and a suite of customised products incorporating elements of starting and growing a business, exporting and the use of technology;

• maintaining the State's standing as a preferred destination for business migrants under the revised business visa requirements. This includes capitalising on the new requirements through the enhanced use of state sponsorship as part of the WA incentive to prospective migrants;

• developing and delivering a series of regional 'Working With Government' forums across WA, focussing on assisting small business operators to make the most of their interactions with Government;

• delivering the TradeStart program in conjunction with Austrade to increase the number of small businesses exporting for the first time. The Government's objective is to double the number of exporters by the year 2006;

• developing a new workshop, 'Employment Today' for small business employing people for the first time, which will be offered throughout the State through the Business Enterprise Centre Network; and

• increasing the level of take up of E-Commerce by small business by providing workshops on 'E-Start', 'E-Marketing' and 'E-Trade'.

Minister's office: 9222 9699