The Liberal-National Government has today announced key policy decisions as part of its ongoing review of major capital works - including the fast-tracking of the building of more than 1,000 new homes in the next 12 months.
Premier Colin Barnett said the Government was focused on projects that would keep the state moving by providing immediate jobs and long-term investment to build our economic future.
"Our capital works priorities are based on providing jobs and investment and delivering better services to the community," he said.
Mr Barnett said the State Government was bringing forward spending that would see the building of 600 homes by the Department of Housing and Works and the construction of more than 400 houses for government employees in regional areas.
"These will be new homes to provide a stimulus to the building industry and assist those who may be struggling as a result of the economic crisis," he said.
The Premier said key capital works projects would include the construction of a new children's hospital to replace Princess Margaret Hospital and 14 new schools at a cost of $300million over six years.
He said new projects would include:
Mr Barnett said these projects would be in addition to the more than $1.1billion in new capital works commitments announced during the Government's first 100 days:
$55.8million for the redevelopment of the Kalgoorlie Regional Hospital and $135million for the Albany Regional Hospital
construction of the new $54.5million Livestock Centre at Muchea
$100million to the Local Government Fund under Royalties for Regions
$229.8million for the expansion of Joondalup Hospital
$150million to build West Kimberley Regional Prison at Derby.
"We have $7.7billion in capital works under way, well above last year's capital works spend of $6billion," he said.
The Premier said that the Government's reset priorities would result in:
no commitment to build a new football stadium for at least two years, following which the Government would revisit the issue
scrapping Labor's plans for a new museum at the old East Perth power station in favour of a new museum within the Northbridge cultural precinct
a more modest redevelopment of the Perth foreshore involving greater private sector investment.
"As I have said previously, the Government makes no apology for putting schools and hospitals ahead of a new football stadium," he said.
"With rapidly diminishing state revenue, it's a matter of getting the priorities right - and essential services such as schools, hospitals and housing is what's important to the community for today and tomorrow.
"Labor's projects were conceived during the heady boom days of the past, and, in their current form, are simply not a priority in the declining economic environment we find ourselves in today."
Mr Barnett said he was confident of Commonwealth support for the state's $3.8billion Infrastructure Australia program that includes major city-based projects such as the Northbridge Link; transport links for Perth Airport and regional projects including further development of the Ord River and the construction of the port facilities at Oakajee.
"These projects will stimulate private sector investment, create jobs and will have the capacity to meet the future demand for industries that underpin the future of the State's economy," he said.
"Governments all over the world are providing assistance to major infrastructure projects to keep economies moving and our projects should be given the full support of the Commonwealth in meeting that objective."
Treasurer Troy Buswell said the ongoing audit of capital works projects was aimed at providing continued jobs and investment without placing the State's finances at risk.
"We want to ensure that we keep the state moving through a robust capital works program that creates jobs by identifying projects that are either approved or budgeted for that we can accelerate," he said.
Mr Buswell said the job of striking the right balance between jobs and investment and maintaining control over state debt was being made difficult by the rapid deterioration and fluctuations in state revenue which had dipped by an additional $1billion since the mid-year review.
"The previous Labor government's wish list of high-spending projects would have placed too high a burden on the State's finances, resulting in the potential loss of the AAA credit rating," he said.
"The Government cannot afford to spend up big by putting at risk our net debt to revenue ratio that would blow the state's credit rating and place imposts on taxpayers," he said.
The Treasurer said the timing and final costs of the Government's capital works program would be finalised as part of the Budget process.
Premier's office - 9222 9475
Treasurer's office - 9222 9111
