Prime Minister Kevin Rudd is facing a less than warm welcome in Western Australia on Friday, after announcing his controversial special economic zone for the Northern Territory.
Under the policy, which has been slammed by the NT chief minister Adam Giles and WA Liberal Premier Colin Barnett, NT-based companies would enjoy a corporate tax rate a third lower than the rest of the country, simplified investment rules and streamlined regulation.
Opposition Leader Tony Abbott in June announced a coalition government would produce a white paper on developing northern Australia and said Mr Rudd was playing catch-up.
Mr Rudd will on Friday announce Perth as headquarters for an Oil & Gas Innovation Partnership that brings together 35 business and research institutes to drive innovation in the sector, The West Australian says.
The partnership will draw together about 35 businesses and research institutions with government support to find new ways to build on the oil and gas sector.
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But it's his northern plan that is expected to face scrutiny.
Mr Barnett on Thursday said the plan was discriminatory and should be rolled out in WA's Kimberley region and in north Queensland.
"An advantage has been given to next door in Darwin, and has profound implications for Western Australia. This is discriminatory and it could have severely adverse affects on the development of the Kimberley," he said.
