Treasurer; Attorney General
Member for Bateman
The State Government will tomorrow introduce legislation securing and strengthening Bankwest's financial and operational commitments to Western Australia.
Treasurer Christian Porter announced the commitments as part of a legislative package designed to enable Bankwest and the Commonwealth Bank (CBA) to comply with federal regulations requiring them to operate under a single banking licence.
Mr Porter said the Australian Prudential Regulation Authority required Bankwest (which has been owned by CBA since 2008) to cease operating as a separate company and operate under the same banking licence as CBA, or raise funds under its own Authorised Deposit-taking Institution (ADI) licence.
He said any change to allow Bankwest to operate under the CBA's ADI licence meant amendments had to be made to the Bank of Western Australia Act 1995 in State Parliament.
If amendments were not made there would be costs to Bankwest customers because Bankwest would be forced to raise funds more expensively and separately to the CBA.
"Given the potential impact on the Western Australian community and small businesses, the Government has to make the necessary minor changes to the legislation," Mr Porter said.
The Treasurer said key commitments already in the existing legislation would be maintained and updated to reflect Bankwest's new corporate structure, including continuing to carry on the type and scale of Bankwest's business at June 2011 levels and keeping the location of the head office and management in WA.
The legislation also means that, for a period of at least five years, Bankwest will be required to:
"These additional commitments go well beyond the provisions of the 1995 Act and are a good outcome for the community in Western Australia. Further, these undertakings are backed by specific enforcement provisions with significant monetary penalties if they are not complied with," Mr Porter said.
Fact File
Treasurer's office - 6552 5600
Treasurer Christian Porter today announced that Expressions of Interest for the provision of the Government Employees Superannuation Board's (GESB) administrative services would be sought.
Mr Porter said the move followed the decision to allow State Government employees to choose their super fund from March 30, 2012, the central reform recommended in the Whithear Review.
"As a result of this choice reform - which has been overwhelmingly supported by public sector employees - GESB will not have the economies of scale to offer the most cost effective administration services in the long run," he said.
"If GESB is prevented from exploring options to lower the cost of providing administrative services, the effect could be higher costs to those who do choose to remain with GESB."
The Treasurer said procuring administrative services from a specialist external provider would be aimed at achieving lower costs to members. Outsourcing should also enable GESB to keep pace with the many superannuation reforms and other challenges in a rapidly changing industry.
Mr Porter said many super funds across the industry were currently procuring administration services from external providers to minimise operating costs and gain efficiencies through economies of scale.
"The Government is undertaking this reform so that GESB will be able to ensure their administrative costs are competitive," he said.
Mr Porter said the provision of GESB's superannuation administration services was expected to appeal to the market and should result in better outcomes for both existing members and future State employees, primarily from competitive fees and services to members, particularly over the longer term as the superannuation industry continued to consolidate these services.
"This opportunity to compete for the provision of these services offers the market an exciting opportunity to engage with the State and GESB in these reforms to maintain competitive services to members," he said.
Fact File
Treasurer's office - 6552 5600
Attorney General Christian Porter today launched the latest round of the Criminal Property Confiscation Grants program, which allows local governments and non-profit community groups to apply for grants of up to $200,000.
Mr Porter said the program, administered by the Department of the Attorney General, allocated the grants from a pool of funds seized under the State's tough proceeds of crime laws.
The Attorney General said the grants would fund projects designed to prevent or reduce drug-related crime and drug abuse, support crime victims or to aid law enforcement.
"The grants are released to the successful applicants once they have met certain pre-conditions, including contributing in-kind support to the project they are going to run," he said.
Criminals' money and property can be seized by the WA Police and the Director of Public Prosecutions under the Criminal Property Confiscation Act 2000.
A total of $2million has been made available in this latest round of the program.
The closing date for applications is Friday, June 29, 2012 at 5pm.
Fact File
Attorney General's office - 6552 5600
Government agencies and Government Trading Enterprises (GTEs) will be required to identify waste and ensure more efficient spending under new savings initiatives announced today by the State Government.
Treasurer Christian Porter said the initiatives would not impact on frontline service delivery outcomes and would form part of the 2012-13 State Budget.
"These initiatives are a necessary response to the Federal Labor Government's decision to reduce Western Australia's population share of the GST to 55 per cent in 2012-13," Mr Porter said.
"Our State is now suffering an unprecedented reduction in funding at the hands of the Federal Labor Government with confirmation last week that WA's share of GST grants would be slashed from the already low 72 per cent to just 55 per cent in 2012-13.
"Compared to our full population share of the GST, a 55 per cent share will cost WA about $2.4billion in 2012-13 and current predictions indicate a loss of about $16billion over the five years to 2015-16.
"Prime Minister Julia Gillard has effectively taken more than $800million of WA taxpayer's money out of the State Budget overnight. To ensure the State finances remain in surplus, the Liberal National Government has had to make the strong decisions and commit to finding savings inside the State Budget."
The Treasurer said the savings initiatives would include:
"These initiatives are designed to guarantee the WA taxpayers that public departments are operating efficiently with as little waste as possible," Mr Porter said.
"The Liberal-National Government has a solid record of cutting waste and delivering more efficiency across the public sector and this initiative further reflects our commitment to do the hard work to keep the State finances in surplus."
The new savings initiatives build on the highly successful measures to achieve efficiencies in the public sector that have already been introduced by the Liberal-National Government since 2008, including:
Fact File
Treasurer's office - 6552 5600
Attorney General Christian Porter today announced the appointment of three temporary coroners to assist in reducing the backlog of coronial cases.
Mr Porter said the new appointments of Barry King and Peter Collins as coroners would commence this month.
"Both Mr King and Mr Collins bring a wealth of legal experience with them to the position," he said.
"Mr King has been employed as Senior Assistant State Counsel with the State Solicitor's Office, and Mr Collins has been employed as the Director of Legal Services with the Aboriginal Legal Service of WA."
The Attorney General said in addition to those appointments, current coroner Dominic Mulligan had been appointed to continue in the role.
"Mr Mulligan has extensive experience in coronial inquests and will, I am sure, continue the excellent work he has already undertaken in the role," he said.
Mr Porter said these appointments showed the State Government was committed to reducing the current coronial backlog.
The funding for the appointments has been allocated as part of the State Government's 2012-13 Budget, comprising an additional $509,000 in resourcing for the Coroner's Office in 2011-12, and an additional $1.015million in 2012-13.
The funding also includes the appointment of five extra support staff.
Fact File
Attorney General's office - 6552 5600
Minister's office - 6552 5600