Funding cut to regional services and infrastructure

What they promised

'Mr Grylls said the equivalent of 25 per cent of annual mining and petroleum royalties collected by the State would be allocated to new projects and services in regional areas of WA.'

- Ministerial Media Statement, 24 August 2008

What they say now

$206 million of RFR money will now be used to fund the operations of the Department of Regional Development and the nine Regional Development Commissions

- 2013-14 State Budget

03 Sep 2013 - The Barnett-Grylls Government has broken its promise to spend 25 per cent of mining royalties from the Royalties for Regions (RFR) fund in regional WA for investment in infrastructure and services. However in the 2013-14 Budget it was announced that the Department of Regional Development and the nine Development Commissions will now be funded by RFR.

The decision to fund the Department and Development Commission using RFR funding will result in $206 million being shifted from infrastructure and service delivery to funding the administration of Government entities. 

In a press release issued by the Treasurer Troy Buswell and the Minster for Regional Development Brendon Grylls the following statement was made.

‘Royalties for Regions returns the equivalent of 25 per cent of mining and onshore petroleum royalties to regional WA through investment in infrastructure and services’.

- Ministerial Media Statement 8 August 2013

However, RFR money will now be used to fund the operations of the Department of Regional Development and the nine Regional Development Commissions. This will cost $51 million in 2013-14 and in excess of $200 million over the next 4 years.  Budget Paper 3 p224

In addition to this around $1billion of Royalties for Regions funding will be diverted to the Future Fund which will be spent on projects in both regional WA and the metropolitan area. The Future fund was announced in the 2012-13 State Budget. 

Between 2012-13 and 2015-16, over $1billion in ‘seed capital’ will be transferred from the Royalties for Regions (RfR) Fund into the new Future Fund. - 2012-13 Budget Overview P7
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