Iron ore royalties help strengthen WA’s economy

The contribution of the WA resources sector continues to underpin the local economy, with State Treasurer Ben Wyatt today confirming that higher iron ore prices and an increase in royalties added an extra $1 billion to the Western Australia economy.

CME CEO, Paul Everingham, responds to the WA mid-year economic review and how it may affect the resources sector.

Chamber of Minerals and Energy of WA (CME) CEO, Paul Everingham said it was a great achievement for WA to be the only State in Australia where debt is forecast to decline. 

“The State Government is to be congratulated for its sound financial management in reducing debt and managing recurrent spending,” Mr Everingham said.

“Thanks to higher than expected iron ore prices, the State Government is now predicting a budget surplus of $2.6 billion, whereas earlier in the year it was $1.5 billion. 

“The increase in revenue will allow the State Government to repay debt, create jobs, fund infrastructure projects and deliver better services.

“Latest figures also revealed that the resources sector employed a record 124,000 people in 2018-19. This makes the sector one of the largest employers in WA and a significant contributor to the State’s economy.”