Wednesday, August 28, 2013

WA - Revenue shortfall leads to budget cuts

Vanguard September 2013 p. 12
Contributed

Western Australian Premier Colin Barnett has been forced into an embarrassing backdown after one of his Budget cuts angered large sections of the community.

Some 75,000 households had solar power panels installed under an agreement that a feed-in tariff of 40 cents per unit of electricity would be maintained for a decade.

Only five months into its new term of office, the WA government has been faced with a revenue shortfall, in response to which it announced that it would halve the feedback tariff. It was a reminder to Western Australians that no political party has a monopoly on the parliamentary practice of the broken promise.

Four days after the announced cut, and on the same day that Treasurer Troy Buswell had said that the cuts would not be reversed, they were. It was a reminder to Western Australians that no political party has a monopoly on the parliamentary backflip.

Other Budget measures included slashing the private car registration concession, imposing a $4000 fee on children of Section 457 workers attending public schools, and cutting $6.8 billion in staff salaries and services from the WA public sector.

The education budget was slashed by $282 million at the same time that funds were directed to encouraging the privatisation of schooling.

WA’s so-called “independent” public schools would be expanded at a cost of $18.2 million and this despite the fact that research has not shown that they have improved student learning outcomes.  Funds for expansion of buildings in private schools have been doubled, yet funding for TAFE has been cut.

It looks like the state that has been riding on the top of the iron ore train is heading for derailment.

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