COUNCILS in the Pilbara have given the State Government until February 7 to respond to demands for $14 million in compensation for revenue foregone through the rating restriction clauses contained in State Agreements.
COUNCILS in the Pilbara have given the State Government until February 7 to respond to demands for $14 million in compensation for revenue foregone through the rating restriction clauses contained in State Agreements.
Unless a satisfactory response is received, the councils say, they will re-run a $25,000 regional TV advertisement during the election campaign attacking the Government over the issue.
The four Pilbara shire councils that make up the Pilbara Regional Council (PRC) say they need more money to pay for deteriorating infrastructure and services in the region.
The Pilbara, home to some of the world’s biggest iron ore and petroleum companies, contributes a large share of the $1 billion in mining royalties paid to the State each year.
The PRC’s February 7 deadline comes despite the Government’s release of a policy to include local government rates in new State Agreements, as well as plans to renegotiate agreements excluding the rating clauses.
The Government also recently announced a spending package for Pilbara infrastructure of more than $140 million.
PRC chairman Bob Neville said he doubted the Government could renegotiate State Agreements to include rating clauses.
“These are some of the biggest companies in Australia and the world,” Councillor Neville said.
“I can’t see that happening.
“They [the companies] may agree to it but as long as the rate equivalent comes off their royalties.”
If this were to occur it would effectively mean the Government would be paying the councils’ compensation claims.
Mr Neville said the Government had previously rejected the PRC’s compensation claims but had not formally told the council of its plans.
He said the PRC would again write to the Government asking it to formally communicate its position.
A spokesman for Dr Gallop said the Government would respond to the PRC when communication was received.
Mr Neville said the PRC would also ask the State Opposition to clarify its position.
While Opposition leader Colin Barnett has said a Coalition government would phase-out rate exemptions to provide a boost to regional infrastructure, the Coalition is yet to release a formal policy on State Agreement Acts.
Opposition Resources Development spokesman Norman Moore said the Coalition was still working through its formal position and an announcement was likely early next week.
However, he said the Coalition was proposing to negotiate an arrangement outside State Agreements for companies to increase their contribution to the regions in lieu of rating exclusions.
Mr Moore said that, depending on the level of private infrastructure investment, clauses excluding rating could be included in new State Agreements under a Coalition government.
Chamber of Minerals and Energy director David Parker said State Agreements gave WA a competitive advantage over other jurisdictions and they should not be undone.
