Premier Colin Barnett's insistence that Woodside and its joint venture partners develop their Browse Basin gas at James Price Point will likely lead to a bad economic outcome, according to a landmark paper.
Project Western Australia: A growth and productivity agenda for the next State Government, to be launched today, was written by former Institute of Public Affairs executive director and Federal MP John Hyde and policy adviser Andrew Pickford.
It argues that government intervention in a range of fields is hampering growth and that more should be done to reduce the size of the bureaucracy and wasteful spending.
The paper calls for a new inquiry into public sector finances, including whether the Royalties for Regions program is value for money.
"Current governments, fortunate as they are with abnormally high royalty income, should not expect that future governments will be able to act in similarly good times. Accordingly, the theme of this study is that government should take advantage of current good times to eliminate government debt and raise productivity."