GST fight gets ugly as WA Premier uses bushfire disaster to squeeze more money

THE battle over GST dollars just got nasty with WA Premier Colin Barnett using his state’s help to Victoria during deadly bushfires to leverage more money in ‘disgusting’ move.

Premier Hon Colin Barnett MEc MLA and Hon. John Howard Dadley Day MLA at the old East Perth power station.

THE battle over GST dollars just got nasty with West Australian Premier Colin Barnett using his state’s help to Victoria during disastrous bushfires to leverage more money.

Premier Barnett’s pointed reference to the 2009 tragedy, which took 173 lives, has shocked the Victorian Labor Government and intensified debate over funding of states.

And he has added to the tensions, already high, surrounding tomorrow’s meeting of the Council of Australian Governments — premiers, territory leaders and the Federal Government — in Canberra.

Western Australia is desperate for revenue because the collapse of iron ore prices has slashed its income from royalties, and its take from the national GST pool will next year be a record low of 30 cents for every dollar of the tax raised in the state.

Mr Barnett wants other states to chip in to help his, and the absence of any substantial offers clearly has angered him. So he took aim at Victoria.

“When Victoria had those tragic fires a few years back, Western Australia was the first state and the most generous state to provide financial assistance,” Mr Barnett said on Perth’s 6PR.

“Perhaps the new Treasurer (Victoria’s Tim Pallas) has got a short memory, or perhaps he’s not aware of that.”

Victorian Premier Daniel Andrews immediatley called Mr Barnett’s comments “both disgusting and fundamentally disgraceful”. He spoke as he arrived in Canberra for preliminary talks with other premiers.

“I call on Colin Barnett, on behalf of all Victorians, to apologise unreservedly and immediately,” said Mr Andrews.

Disgusted ... Victorian Premier Daniel Andrews has demanded an apology.

“One hundred and seventy-three people died, for heaven’s sake. These comments are disgusting, they are disgraceful, and Mr Barnett should apologise in full and immediately.”

The comment could backfire, as did Prime Minister Tony Abbott’s mention of Australian aid to Indonesia during the 2004 tsunami as he pleaded for the life of two members of the Bali Nine.

Mr Barnett has added to the tensions, already high, surrounding tomorrow’s meeting of the Council of Australian Governments — premiers, territory leaders and the Federal Government — in Canberra.

Federal Opposition Leader Bill Shorten said he was sure Premier Barnett regrets the remarks: “If he hasn’t, then he should.”

“These comments are deeply unworthy of a leader,” Mr Shorten said in a statement.

“Australians help each other when disasters hit, we help each other when we need it. In times of disaster, Victorians help South Australians, Queenslanders help West Australians.

“I’ve sat down with families who lost everything during this tragedy.

“If Colin Barnett had been there, I doubt very much he’d be using such a tragedy to make political points.

No one should ever use a tragedy like this to play politics.”

Mr Shorten, who today is in Perth, has called for a one-off $300 million grant to WA to tide the state over.

The GST debate has divided opinions among Government leaders with the West Australian cabinet members — Foreign Minister Julie Bishop and Finance Minister Mathias Cormann — pressing for some WA assistance.

Prime Minister Abbott is sympathetic but has said he wants the premier to sorts out the matter. He is likely to be forced to take a lead at the COAG meeting tomorrow.

Originally published as GST fight gets ugly as WA Premier uses bushfire disaster to squeeze more money