Albanese signs WA GST pledge on reporter’s arm and signals possible support for state’s nickel miners
The federal government is considering “time-limited support” for the nickel industry in Western Australia as it faces growing international competition from Indonesian producers, Anthony Albanese has said.
The prime minister also pledged to maintain WA’s lucrative share of GST payments by signing a promise on a newspaper front page and on a reporter’s arm in marker pen, before encouraging the journalist to get it tattooed on his body.
Albanese said the soaring payments to WA, which could hit $50bn over a decade under a sweetheart deal inked by the former Coalition government, were set “in stone” and would not change, even as leading economists criticise the arrangement.
The federal cabinet has once again been taken to Perth by the prime minister, in a bid to further underscore the importance of the state to the Australian economy and the government’s electoral fortunes after a surprisingly strong showing at the last election.
Nickel miners have called for government support, including tax and royalty relief or emergency funding, after sharp falls in mineral prices. Asked about the issue in Perth, Albanese signalled federal help was under consideration with the WA premier, Roger Cook.
“This is something that has happened over a very short period of time. Indonesia has gone from supplying 5% of the international market to supplying 50% of the international market. And that’s led to a significant reduction in price,” he told 96FM.
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“What we need to do is to make sure that we get through this with a calibrated, targeted and time-limited response. And that’s something that my government is certainly prepared to do.”
At a press conference, Albanese declined to give specifics but said the government was looking at “smart, time limited support” to ensure “an ongoing industry in nickel”.
The resources minister, Madeleine King, last week listed nickel on Australia’s “critical minerals” list, meaning it became eligible for extra support.
She said on Perth radio last week the nickel industry was “looking for widespread assistance”. King said relief on the mining royalties which companies pay “is one part of the puzzle” but that it was a state government issue, and the federal government was looking at “other means”.
The shadow resources minister, Susan McDonald, was upset the government had taken so long to list nickel on the critical resources list.
“Whilst this announcement now opens the door to support for the industry, it may be too little too late for the thousands of Australian workers at risk of losing their jobs thanks to the inaction from Labor,” McDonald said last week.
The other major political flashpoint from the cabinet’s visit to Perth is the GST formula. When prime minister, Malcolm Turnbull oversaw reforms to the distribution carve-up which guaranteed no state would get less than 70 cents from every dollar it collected in GST, in a bid to shore up support in WA, which was facing a shortfall in its funding at the time.
Since then, the latest mining boom has seen WA enjoy surging mining royalties as well as soaring iron ore prices. The formula set by Turnbull’s government also guaranteed no state would be worse off under the deal until 2026 – an arrangement extended by the Albanese government to 2030.
The deal has come under renewed scrutiny in recent times after the Australian Financial Review reported economists Saul Eslake and Chris Richardson had estimated the deal would cost the federal government $50bn over a decade.
Asked repeatedly whether his government would alter the deal, Albanese on Monday said “no, exclamation mark”.
“We’ll make no changes to it. We’ve made that very clear. And what’s more, we have put in place the funding for the other states and territories to make sure that they are not worse off as well,” he told 6PR radio.
“It’s fair to say that there’s not a cheer squad for this policy in other states, but the measures that we put in place ensures that that is confirmed going forward. And every premier and chief minister signed off as well at the national cabinet in December.”
The West Australian newspaper’s front page on Monday carried a mockup of a pledge for Albanese to sign, which it described as a “political gimmick” and “a bit cheeky”. The prime minister took the opportunity when asked at a press conference by the West Australian reporter Dylan Caporn.
“I reckon you should get a tat and get a signature on the tat. I’m happy to sign your arm if you like,” he said.
Albanese pulled a pen from his pocket, scrawling “NO CHANGE TO WA GST” and his signature in blue ink on Caporn’s arm.
The reporter – a former staffer for the Labor MP Patrick Gorman, the assistant minister to the prime minister – tweeted a photo after the press conference.