Colin Barnett Warns Of ‘Tea Party’ GST Revolt

WEST Australian Premier Colin Barnett has warned of a “Tea Party” style revolt in his state if the commonwealth doesn’t offer a fairer deal on sharing GST revenue.

He says the WA government is being driven into increased borrowing and debt primarily because of the state’s cut in its share of the GST.

“That is meaning that we are required to use more borrowings rather than cash flow to fund projects like schools and hospitals and roads and ports,” he said today.

“When you’ve got a scenario where we’re going to probably in three or four years be getting about 40 cents in the dollar back, while every other state gets 90 cents plus, that is just grossly unfair.”

“I think the commonwealth, certainly at a public service level in Canberra, understands that basically you’ve got a tea party situation in Western Australia,” Mr Barnett said.

He said WA was being “done over financially” and if the rest of Australia wanted the state to underpin the nation’s economic growth, then a fairer deal was needed.

“The Tea Party movement in the United States is basically a public revolt, if you like, against excessive taxation and regulation.

“I’m just simply saying Western Australians, whether it’s the government, whether it’s people, families, will not cop this,” Mr Barnett said.

“If you have a situation where Western Australia cannot continue to provide necessary public services and capital projects without rapid expansions of debt, then people will react, governments will react.

“Something’s got to give here and it’s very simple for the commonwealth to give some ground.

“All they need to do is agree to a floor share of GST. I’ve said 75 cents, I think that’s a fair figure.”

Mr Barnett said that would still mean WA was subsidising other states.

“We’re doing it well as a state and we’ve done it well for a long time, but we cannot carry the rest of Australia if we don’t get some fair deal in providing public services.”