WA:Giddings warns Barnett as stoush heats up

AAP General News (Australia)
04-04-2011
WA:Giddings warns Barnett as stoush heats up

PERTH, April 4 AAP - Tasmanian Premier Lara Giddings has warned West Australian Premier
Colin Barnett "to be careful what he wishes for" in pushing an overhaul of the GST carve-up.

Mr Barnett angered Ms Giddings on Sunday when he derided her state as "Australia's
national park" and argued there should be pressure on the island state to drive its own
economic development instead of being propped-up through the distribution of GST revenue.

"If they continue to reject any sort of development, well what right is there to simply
take the spoils of hard work in other states?" he told Sky News.

Ms Giddings said she and her fellow Tasmanians had "every right to feel slighted" by
the comments.

She said the system used by the Commonwealth Grants Commission to distribute GST revenue
was to ensure every Australian was treated equally and had the same access to standard
services.

The Tasmania premier highlighted that WA had benefited from the current system until
2007 when it was receiving more than its population share.

"What I'd say to Colin Barnett is that he'd ought to be very careful about fighting
too hard against what has been a formula that's been agreed on for a decade now by the
states," Mr Giddings told ABC Radio on Monday.

"Because one day WA may well need it again themselves.

"If the market drops out of the mineral export area then WA will be floundering and,
just like Tasmania needs support, they will need support. So be careful what you wish
for."

Ms Giddings rejected the WA Premier's suggestion the state was not driving economic
development but conceded some of its industries, such as its forestry sector, were struggling.

The fact international markets were no longer accepting woodchips from Tasmania had
caused problems for the state, she said.

She said it was true 47 per cent of Tasmania was in some form of nature reserve with
a large proportion world heritage listed but it was partly due to federal intervention.

Relations between the two states flared in November when WA Liberal MP Don Randall
said Tasmania had become "a leech on the teat" of both the Australian economy and his
home state.

Mr Randall said he was sick and tired of "mendicant states" like Tasmania.

AAP jsj/dep

KEYWORD: TAX GIDDINGS

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