Western Australia’s $3.4bn reliance on mining

<p>Western Australian treasurer Eric Ripper yesterday (Thursday, May 8) handed down a surplus budget that would put just $1.2bn into port and road upgrades, despite reaping almost triple that in revenue from mining.</p> <p>The state’s $2.1bn surplus is expected to drop to $203m by 2011&#4712 and the state’s rate of growth is forecast to fall from 7.5% to 4.5% in the next three years.</p> <p>The diminishing surplus is expected as a result of predicted falls in iron ore prices by 2011 and despite the predicted near-tripling of iron ore exports from the state in the next decade.</p> <p>WA now makes up 38% of Australia’s exports, with the state’s mining sector propping up the State Government’s balance sheet by about $3.4bn. </p> <p>Mr Ripper promised a record $7.6bn in new infrastructure in 2008&#4709, but only $377m would go into port upgrades and $810m into road work, $705m of which would fund the new Perth to Bunbury Highway.</p> <p>The second stage expansion of the Geraldton Southern Transport Corridor and the completion of the Mitchell Freeway extension to Burns Beach Road have also been funded.</p> <p>Port upgrades include $126m to deepen port of Fremantle’s inner harbour and funding for a multi-user berth and bulk handling facilities at Port Hedland’s Utah Point.</p> <p>The WA Government is expected to release its 20-year State Infrastructure Strategy soon. </p> <br />