Labor questions government commitment to agriculture

Treasurer Mike Nahan said the Liberal National Government's budget, delivered on Thursday last week, had focused on building infrastructure to complement the State's natural advantages.

"Because of our investments, we are well-placed to take advantage of the growing middle class in Asian countries who want to visit WA to buy our produce and experience our pristine environment," Dr Nahan said.

The budget detailed new programs under the Seizing the Opportunity Agriculture initiative to broaden the economy, as well as a $3.6 million aquaculture hatchery investment, as part of the Government's long-term plan to develop a sustainable aquaculture industry.

Dr Nahan said through Royalties for Regions, the government would invest in regional initiatives to boost the agrifood sector.

This included an extra $50m directed to the Seizing the Opportunity initiative and $20m for the WA Open for Business project to help agriculture and food sectors increase trade and investment.

But WA Labor said WA has been left with a weakened balance sheet, record deficits and record debt.

The budget forecast a $2 billion deficit this financial year and a $3.9b deficit in 2016-17.

Shadow Agriculture and Food Minister Mick Murray said the government lacked commitment to the sector and had short-changed agriculture.

Mr Murray said the budget had not supported government rhetoric that agricultural investment would save the WA economy and had not committed sufficient new money to rural projects.

"Seeing as though agriculture was paraded around by this government, that it would be the 'saviour' for WA, I think there was a lot of money shuffling,'' he said.

"We need to support an industry that is going to carry us forward in the next five to 10 years – and in this case I think we have been short changed.

"The comments in the budget papers indicate government will 'work with industry', but that's just words... they are not committing a lot of money."

The budget stated the collapse of the State's mining and resource sector had highlighted the need to broaden the WA economy.

Mr Murray said to state that global demand was on the rise and the sector had the potential to make a greater contribution to the economy, without committing money to ensuring its future, was a contradiction.

Mr Murray said he feared the industry would be unable to capitalise on growing global demand and would receive little assistance from the Department of Agriculture and Food, which has had more than 100 staff made redundant.

"There is still a large amount of money that has been put aside for redundancies and will be a bad outcome for industry," he said.

"How services are going to be provided in the future will be interesting."

Mr Murray said increases to household costs would also affect regional families.

"The water, electricity, land tax and licence increases will hurt country people," he said.

"Many farmers have more than one vehicle, I believe the increase should have been allocated to individual licences, not per vehicle."

Dr Nahan revealed on Thursday the average home would have to pay an extra $158 a year for the main household costs, on top of an increase in households expenditure of $198.54 predicted last year.

Electricity prices will rise by three per cent and water bills by 4.5pc.

Standard motor vehicle licences will go up 2.5pc, as will standard third party insurance costs.

As expected Western Power was officially added to the government's multi-billion dollar privatisation wish list.

Dr Nahan said he wanted to sell Horizon Power's transmission and distribution assets in the Pilbara, and to privatise Fremantle Port and the TAB.

Shadow Treasurer Ben Wyatt said Dr Nahan had failed to diversify the economy and ensure that the State, following the energy and commodity boom, was ready to surge into the next phase of economic growth.

"Even worse, the Barnett Liberal government has adopted policy measures that have had the effect of slowing our economic growth even further," Mr Wyatt said.

"Following on from the 2013 'fully funded' and 'fully costed' election campaign where the Liberal Party stated no tax increases would be necessary to fund their election commitments, we saw Mike Nahan increase land taxes three times in two years."

WA Labor leader Mark McGowan said the long years of failure of the Liberal-National government to manage the State's finances had resulted in a sad legacy of reductions in services, increases in household charges and desperate schemes to sell off public assets.

"This is a budget of desperation," Mr McGowan said.

"They have run out of ideas, run out of energy and they have no plan for the future."

Labor highlighted the record deficit, approaching $4b and record debt breaking through $40b.

"The deficits are worse than forecast and household charges are higher than promised," Mr McGowan said.

"For three years in a row, they have borrowed for everyday spending.

"Today's budget represents eight years of lost opportunities.

"The Liberals failed to diversify our economy."

But the business community however commended budget measures to broaden the economy and keep spending under control.

The Chamber of Commerce and Industry (CCI) said plans to privatise Western Power and sell Horizon Power's poles and wires in the Pilbara would wipe significant debt off the balance sheet, reduce interest payments and reassure the market that WA has its finances under control.

It said funding initiatives to boost the tourism, agriculture, innovation, aquaculture and defence and ship building industries will drive new opportunities and allow businesses to grow and create jobs.

CCI chief executive officer Deidre Willmott said business welcomed the fiscally responsible approach that still maintained a long-term vision for WA.

"Business was also pleased the government has announced no new taxes and is committed to lifting the payroll tax threshold and examining land tax aggregation," she said.

"Creating a business-friendly tax environment, while broadening the economy will allow business to grow, create jobs, discover new opportunities and help build a diverse and agile economy for our future.

"CCI also called for the government to reduce expenditure growth, which has averaged 7.9pc over the past decade, so welcomed news that this will reduce to 3.7pc in 2016-17."