PLANS to scrap or restrict regional funding in order to cut costs to the state’s economy have been shouted down by the Bunbury Wellington Economic Alliance.
The move was put forward in a series of recommendations released by the WA Economic Regulation Authority on Friday which aimed to reduce overall costs, cut the cost of goods and services and remove barriers to competition.
The reform included repealing Royalties for Regions legislation or restricting regional funding to an amount determined annually and guided by cost benefit analysis on a project-by-project basis.
Alliance spokesman Matt Granger said while the authority’s report had recommendations worthy of serious consideration, scrapping Royalties for Regions legislation was not one of them.
“Royalties for Regions has made a big difference for communities around the state and it is a reasonable proposition that a portion of the royalties generated in regional WA be invested back into the regions,” Mr Granger said.
“We have no problems with rigorous assessment criteria being applied to Royalties for Regions funding, but would oppose scrapping the legislation.
“In the South West, we anticipate that Royalties for Regions will help underpin transformational projects outlined in the South West Blueprint.”
Authority chairman Lyndon Rowe said the reform identified measures which would have the largest potential benefits and would be relatively easy to implement.
“It is increasingly apparent that we cannot rely upon continuing strong economic growth from our natural wealth to raise our living standards,” Mr Rowe said.
“Therefore, productivity growth will have to come from reforms that address hidden waste in our economy and remove unnecessary burdens on business and consumers.”
