Main State Budget statement

A $367 million boost to capital works, small business incentives and a $50 million industry package underpin the 1992-93 State Budget.

There will be reductions in Government imposts on business, new aid to support and foster Western Australian products and increased emphasis on vocational education, skills training and traineeships.

In bringing down the $5.06 billion Budget, Premier Carmen Lawrence said:  "As this State leads Australia out of recession, the Government's overriding objective is to combat an unacceptably high level of unemployment.

"Although this State has made good progress, today's Budget is designed to create more sustainable jobs and to build on the initiatives outlined in the Government's economic development statement The WA Advantage in February.

"No new taxes will be imposed for the third year in succession and government growth will be kept behind the State's projected economic growth rate of four per cent to allow more assistance to be directed to the job-creating private sector."

The Premier said assistance for the private sector included:

·         Reducing government imposts:  More than 80,000 small businesses would have their electricity costs cut by up to five per cent from November 1.  This followed the previously-announced payroll tax concessions, which applied from July 1, and the freezing of all land tax valuations at 1991-2 levels.  The savings to business from those two decisions would be about $25.1 million this financial year.

·         A $50 million package for strategic industries to encourage investment in downstream processing and value-added manufacturing.

·         A new research grants program to support and encourage Western Australian ideas and to develop innovative products and processes of commercial merit.

"In times of subdued economic activity government can provide a modest, temporary stimulus to the economy by bringing forward capital works," the Premier said.

"In 1992-93, capital works funding will be increased by 32 per cent to $1,512.2 million.  This money will directly and indirectly provide up to 20,000 jobs.

"A total $556 million will be injected into housing to fund 6,000 homes and 9,200 jobs.

"Westrail will receive $171.7 million, an increase of $56.4 million, as work continues on the public transport revolution - the electrification of rail lines to Midland, Fremantle, Armadale and Joondalup.

"Train use already has significantly improved and the introduction of the northern suburbs railway in early 1993 is expected to boost patronage by a further 40 per cent in 1992-93."

Dr Lawrence said there were positive signs of economic recovery in Western Australia.  Throughout 1991-92 there had been an improvement in demand based across the retail, new motor vehicles and residential building sectors.  Exports grew 14 per cent.

Inflation was now at its lowest rate in WA since 1962-63. 

As the State prepared for improved economic times, there was an urgent need for young people and workers to have the skills necessary for the jobs of the future.

The Budget provided $129.2 million for vocational education training, $20.6 million for people with special needs, and $5.9 million for the development of employment skills.

A minimum 1,000 traineeships for young people also would be provided in the public sector. 

Other Budget highlights:

·         A 5.4 per cent increase to $1,045.8 million in education spending, providing jobs for at least 820 new teachers and support staff.

·         $20 million to reduce hospital waiting lists and boost clinical services as part of a total health budget of $1,225 million.

·         No new taxes, no higher tax rates, nor any extension of existing tax bases.  For the fourth successive year, increases in major domestic utility and transport charges would be kept below the inflation rate.

·         The only new revenue-raising measure would be the introduction of a loan guarantee charge against State Government authorities.  This would bring WA into line with other States and the Commonwealth.

·         A $100 million five-year plan to buy 320 buses to bolster public transport.

·         A heavy emphasis on juvenile justice with a range of programs costing $23 million.

·         Strong support for regional planning and development with $5.7 million for the South West Development Authority, $820,000 to implement the Pilbara 21 strategies and $813,000 for the Geraldton Mid-West Development Authority.

"The hallmarks of this Budget are tight and prudent spending, a modest increase in capital works, stimulus for the private sector and reassessing priorities to benefit families, children and communities," the Premier said.