WA's new Labor premier Mark McGowan is promising to be "very, very friendly" to business to attract investment to rebuild the once boom state's struggling economy.
Western Australia now has the country's highest unemployment rate, faces a record deficit of $3.3 billion this year and is on track for a $41 billion debt in 2020.
Mr McGowan, who will have a team of at least 40 in the 59-seat parliament, has already confirmed the controversial Roe 8 freeway extension will be stopped, and has urged contractors to act now to mitigate losses.
And he's told the commonwealth he's expecting it to pay attention to how West Australians voted and redirect its billion dollar plus investment in that project into Labor's policies, such as Metronet rail.
Mr McGowan on Monday said his number one priority was restoring the budget and implementing his plan to diversify the state's economy.
He said the Liberal Barnett government "really did blow the books" during the economic good times, making it difficult for future governments.
"You can't turn it around overnight, there's no magic solution. That means some people will be unhappy," he told 6PR on Monday, referring to his plan to slash the public service.
His likely treasurer, Ben Wyatt, was also warning that the repair to the economy would be a long-term project and would not outline a timeline.
He said Labor would focus on cutting spending in the general government sector - including in the public service - where most of the debt was being generated.
Asset sales, as proposed by the Barnett government with the part-privatisation of Western Power, was not the answer to the problem, he said.
But pressure will be on Mr Wyatt, who's likely to hand down his first budget in August or September, to perform after he released a heavily criticised debt reduction plan during the campaign.
The plan involved setting aside 50 per cent of iron ore royalties, but only after WA's GST share returned above 65 cents in the dollar and the price of iron ore reached $85 a tonne.
WA's GST return is now 30 cents, while iron ore is expected to drop to $50 a tonne by the end of the year.
Mr McGowan said WA needed to attract more opportunities and he would be encouraging that.
"I will be very, very friendly towards investment and business in WA," he said.
The new premier, who will likely be sworn in by Friday, said he's in charge of his government and won't be beholden to anyone, including unions, for his team's win.
He's having to juggle expectations about his new cabinet, which needs to be reduced to 17 from the current 21 Labor frontbenchers.
Former minister Alannah MacTiernan, who returned to state politics at the election, is expected to return to the ministry in an economic role at the expense of an existing frontbencher.
Mr McGowan and Mr Wyatt had briefings with Treasury and the department of Premier and Cabinet on Monday.
Share
