Please note: This is an extract from Hansard only. Hansard extracts are reproduced with permission from the Parliament of Western Australia

ROYALTIES FOR REGIONS BILL 2009

Second Reading
MR B.J. GRYLLS (Central Wheatbelt . Minister for Regional Development) [12.35 pm]: I move .
That the bill be now read a second time.
I am pleased to introduce the Royalties for Regions Bill 2009. The purpose of the bill is to provide a legislative
base for the operation of the royalties for regions fund, which has already been established administratively. It
will also establish the Western Australian Regional Development Trust, which will provide independent advice
on the allocation of money from the fund. The royalties for regions policy was central to the formation of the
present government. The policy reflects strong public sentiment in the regions that governments of today and
tomorrow need to increase investment in those areas.
The royalties for regions program is designed to help regional communities grow and prosper through promotion
of local decision making and to attract the resources and investment needed to support development in country
Western Australia. One way of doing this is to ensure that a portion of the wealth generated in the regions stays
in the regions. This will place a new focus on people living in regional Western Australia, and will allow the
significant benefits that Western Australia receives from the mining and petroleum industries to be reinvested in
the future of regional communities. This view is also shared by many in the metropolitan area who empathise
with the regions, whether it be through some business or family connection or simply through an understanding
of the difficulties that country people face because of a lack of, or decline in, services and infrastructure.
The central and simple principle behind this legislation is that every person in Western Australia should be
entitled to basic services and infrastructure no matter where they live.schools, hospitals, government services
and recreation and sporting facilities, as well as the ability to develop business and economic prosperity.
However, this legislation is not just about structural development. It is about people being encouraged to live and
grow within their communities, to bring up families without having to move to cities for education or health
services, to become long-term residents and to drive and plan the future of their own communities. In broad
terms, the object of the bill is to promote and facilitate economic, business and social development in regional
Western Australia; that is, through the operation of the fund and its subsidiary accounts it is hoped to build
capacity in communities; retain benefits in local communities; improve services to achieve equity with
metropolitan communities; attain sustainability; expand opportunity; and grow prosperity.
The bill provides that for each financial year an amount equal to 25 per cent of the forecast mining and
petroleum royalty income is to be credited to the royalties for regions fund. It also provides for any income
derived from the investment of money standing to the credit of the fund and for money from other sources such
as the commonwealth to be credited to the fund. However, the bill limits to $1 billion the money that may stand
to the credit of the fund at any time. The royalties for regions fund will consist of the following programs: the
country local government fund; the regional community services fund; the regional infrastructure and headworks
fund; and any other account determined from time to time with ministerial approval.
The fund will hold significant public funds, and a statutory body is required to provide oversight in the
management of those funds. Accordingly, this bill provides for the establishment of the Western Australian
Regional Development Trust, which will provide me with independent and impartial advice on the allocation of
moneys from the royalties for regions fund to each of the subsidiary accounts. The trust will also advise and
make recommendations on the purposes for which funds are to be used and on any other matter relating to the
operation of the fund. The trust is also required to report annually to Parliament on its activities.
The bill provides for the department responsible for assisting the trust to provide the trust with such services and
facilities as are necessary to enable it to perform its functions. In undertaking this role, the Department of
Regional Development and Lands will, as the accountable authority, monitor and report on any disbursements in
expenditure in accordance with its obligations. The department will also be required to include information about
the operation of the fund during the financial year in its annual report.
Local decision making and delivery of this initiative will be fundamental to its implementation. For this reason,
membership of the trust will consist of a chairperson of a regional development commission and between three
and five other people with the regional knowledge and experience necessary to enable the trust to perform its
functions. Although the term of office of a chairperson of a regional development commission will be 12 months, for other members it will be three years. This will provide people with fresh ideas and different
perspectives with the opportunity to become members of the trust and contribute to the social and economic
development of regional areas. This legislation will affect all communities in regional Western Australia,
including all local government areas covered by the nine regional development commissions. Its impact will be
positive and far-reaching and will bring a newfound sense of purpose.
The royalties for regions policy has delivered a program that allows communities to plan for sustainable social
and economic opportunities into the future and the Royalties for Regions Bill 2009 provides a legislative
framework for the ongoing investment into these regional communities. I seek the support of members of the
house to expedite the passage of this bill. I commend the bill to the house.
Debate adjourned, on motion by Mr D.A. Templeman.