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R4R future safe despite GST woes: Redman

Terry Redman.

Regional Development Minister Terry Redman said the future for Royalties for Regions was strong, despite a drop-off in royalty flow from the resources sector, while in Albany this week.

Mr Redman said he was confident the regions would continue to maintain their share of resources in the upcoming Budget.

The comments came in light of the Commonwealth Grants Commission recommending WA's GST share fall to 30 cents in every dollar raised in the State next year.

"I see the future of Royalties for Regions as strong," he said.

"Obviously with the drop-off in royalty flow - that's impacting the State revenue … the current debate around the GST is very challenging and it's really pleasing to see we've got some Members of Parliament at a Federal level stepping up to the plate; I might add that it took them awhile to come to the table.

"Now we recognise we are tracking down to 30 cents in the dollar that something seriously has to change; that tells me that the system is seriously flawed.

"It's putting a lot of stress on the State Budget and it's my job as the Regional Development Minister and the leader of the National Party to ensure regional WA doesn't miss out."

Mr Redman said accusations that Royalties for Regions was "dead" and that the State Government had "squandered the mining boom" were wrong.