In spite of the recent adjustment to the budget, the Royalties for Region programme retains a positive outlook with estimates for the out years looking strong.

 

I am confident Royalties for Regions will continue delivering major benefits to those living, working and investing in the regions.

 

By its nature, the Royalties for Regions Funds was always going to fluctuate in response to changes in royalty flow.   Changes in the global economy and the strong Australian dollar have impacted significantly on the State’s revenue from mining and petroleum royalties which has affected the Royalties for Regions programme for the remainder of the 2009-10 financial year.

 

When royalties were calculated for the budget in May, the $US/A exchange rate was US68.5 cents. However we have seen an average so far for the financial year of US86 which adversely impacts royalty calculations.

 

As a result $130m of recurrent funding has been deferred this financial year. The major deferral in 2009-10 is $90m to the Country Local Government Fund Stage 2 which was scheduled to be distributed in May, 2009. The bulk of this will now be distributed to local governments from 1 July, 2010 for expenditure on capital works.

 

Other adjustments to the Royalties for Regions fund will be a reallocation of $19m under the Regional Grants scheme to later financial years and the deferral of the Northern Towns Development Fund.

 

However, there is $48.9m available for the next round of the Regional Grants Scheme for 2009-10 and I encourage applicants to discuss their projects with their local Regional Development Commission and get their applications in by 10 February, 2010.

 

We took one more step to securing the longevity of Royalties for Regions in the dying days of Parliament this year with the passage of the Royalties for Regions Bill. This sets up the fund into which 25% of mining and petroleum royalties will be deposited annually to be spent on projects to make regional WA a great place to live work and invest.

 

In conclusion, I wish you all a happy and safe festive season with precious family and friends and a prosperous 2010. I look forward to working with you to make regional WA a great place to live work and invest.