19/1/05The Gallop Government today announced a four-point plan to increase the benefits to local governments from major projects operating under State agreements.The plan is outlined in the policy statement ‘State Agreement and Local Government Rates - Sharing the Benefits’.For more than 40 years, State agreements have included clauses preventing local governments from fully rating major projects, minimising rating revenue for local governments and resulting in higher rates and poorer services for regional communities.The practice was abolished by the Gallop Government, with State agreements for the $11billion Gorgon Gas Development and FMGs $1.4billion Pilbara Infrastructure Project allowing Pilbara councils to fully rate the projects.Announcing details of ‘Sharing the Benefits’ in Port Hedland, State Development Minister Clive Brown said the Gallop Government had a plan that was working to deliver greater benefits to local governments and the regional communities they serve, without creating uncertainty for major investors.“The Gallop Government has listened to local governments, especially Pilbara councils, and has acted to increase the benefits to local governments from state agreement projects,” Mr Brown said.“During our first term, the Gallop Government acted to ensure new State agreements did not include rating restriction clauses and we now have a plan to phase out these clauses in State agreements negotiated by Colin Barnett and other former Ministers.“Many State agreements require the company to obtain approval to increase tonnages. With strong international demand for natural resources - especially from China - expected to continue, many such approvals are expected to be sought in the years ahead.“Where companies seek approval to increase tonnage under State agreements, a re-elected Gallop Government will seek changes to those agreements that remove clauses that restrict the ability of local government to rate projects.“In this way, the Gallop Government will progressively remove the financial disadvantages to local governments built into State agreements by Colin Barnett and other former Ministers and provide local governments with an increasing revenue base to provide improved services to regional communities.”Mr Brown said the Gallop Government’s plan trumped the Liberals’ flaky promise on State agreements.“Unlike Colin Barnett, Labor has a real plan to phase out rating restriction clauses in State agreements for the benefit of regional communities,” he said.Minister's office: 9222 9699 STATE AGREEMENTS AND LOCAL GOVERNMENT RATES -
SHARING THE BENEFITS:
- The Gallop Government will continue our policy of not including clauses limiting the ability of local governments to rate projects resulting from new .
The Gallop Government abolished the practice of former Governments, which saw clauses included in State agreements that limited the ability of local governments to rate State agreements projects.
Pilbara Councils claim that these clauses are costing them hundreds of thousands of dollars each year, resulting in higher rates and poorer services for local communities.
Since abolishing this practice, the Gallop Government has negotiated two State agreements - one for the $11billion Gorgon gas Development and the other for FMGs $1.4billion Pilbara Infrastructure Project. Neither of these State agreements include clauses limiting the ability of Pilbara Councils to rate the resulting projects.
This record is in stark contrast to the record of Opposition Leader Colin Barnett, who, when Resources Development Minister in the Court government, personally negotiated nine State agreements that limited the ability of local governments to rate projects.
The Gallop Government will continue to implement its policy of not including clauses that limit the ability of local governments to rate projects resulting from new State agreements.
- The Gallop Government will honour our protocol with local government to improve consultation between local and State Governments during the development of State agreements.
When Colin Barnett was Resources Development Minister in the Court Government, local governments were ignored during the development of State agreements.
The Gallop Government has consulted with local government and signed a protocol with the Western Australian Local Government Association in July 2004 to improve consultation during the development of new State agreements.
The Gallop Government will honour this protocol and continue to consult with local governments during the development of any new State agreements.
- Complete by June 2005, the study currently way to quantify the financial effects of State agreements negotiated before the election of the Gallop Government on local governments.
While the Gallop Government has ended the practice of former Governments of including clauses in State agreements limiting the ability of local governments to rate projects, some local governments have continued to make a case that they are financially disadvantaged by State agreements negotiated before the election of the Gallop Government.
The Gallop Government has commenced a study to determine the extent to which local governments are financially disadvantaged and will complete this study by June 2005.
- Where companies seek approval to increase production tonnages under existing State agreements, seek changes to those State agreements that remove clauses that restrict the ability of local government to rate projects.
Western Australians expect the Government to honour the agreements it makes.
State agreements have been honoured by successive State Governments over the years. The State’s unblemished record in honouring State agreements has resulted in Western Australia being seen as a sound and reliable place to invest.
The Gallop Government recognises the importance of honouring State agreements, while at the same time working with local government and local communities to overcome disadvantages local communities face as a consequence of state agreement rate limitation clauses.
Many State agreements require the company to obtain approval to increase tonnages. With strong international demand for natural resources, especially from China, expected to continue, many such approvals are expected to be sought in the years ahead.
Where companies seek approval to increase tonnage under State agreements, a re-elected Gallop Government will seek changes to those agreements that remove clauses that restrict the ability of local government to rate projects.
In this way, the Gallop Government will progressively remove the financial disadvantages to local governments built into State agreements by former governments and provide local governments with an increasing revenue base to provide improved services to regional communities.
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