David Honey says freezing household charges, investing in a reliable power grid, and developing a new generation of industries should be priorities for the state government.
David Honey penned this piece while he was the leader of the Liberal Party WA, before Libby Mettam stepped into the role earlier this week.
THE new year begins with economic uncertainty confronting our state and much of the world, given the major challenge of trying to stifle the highest surge in inflation since the 1970s.
Considerable economic uncertainty and financial pressure comes from central banks raising interest rates to curb this inflationary surge.
It is not clear how high interest rates will rise before inflation is reduced to acceptable levels and how much economic damage that will cause. Western Australia will ride out the economic uncertainties, as we have done before.
Our internationally significant resources sector will continue to underpin jobs and investment for our state. The contribution from our major bulk commodity – iron ore – may diminish marginally due to lower prices than last year, but it will remain the most significant contributor to WA’s prosperity.
The gold and base metals sectors will also contribute to our economic resilience. WA’s energy sector will be sustained by continued growth in global demand for energy.
In addition, nature makes us one of the most suitable places on earth to produce large amounts of low-cost renewable energy and move into low-cost, emissions-free materials processing and manufacturing.
The demand for lithium and other metals required for electric vehicle production and renewable energy components is turning WA into a key global supplier for these products.
We also have a strong and substantial primary industry sector, which delivered a grain production record in 2022 and has shown its resilience in overcoming the loss of some overseas markets.
While the state can be expected to perform well at the macro level, it will be a tougher year at the micro level for many households and small businesses grappling with higher costs of living and doing business, especially housing costs.
In that context, it is imperative for the state government to help families and businesses this year by freezing government charges, unlike last year when the Labor government continued increasing charges.
The year ahead will be challenging for the government as it grapples with problems of its own making.
Four years of materially worsening electricity supply reliability is a major problem that will only get worse while the government ignores the problem.
The recent debacle of importing coal supplies from Newcastle for Collie power stations, despite our massive coal reserves, provided more evidence of government ineptitude.
COVID will continue to affect the health and productivity of the community while challenging our already-stressed health system.
Four years of underfunding and mismanagement by the McGowan government will not be fixed quickly, despite the belated funding increases.
While energy and health are two major portfolio failings of this government with significant ramifications for the community, evidence of mismanagement and ineffectiveness is available across the broad range of government services.
The most obvious evidence is the absence of notable improvements in any government activities.
WA urgently needs to develop a new generation of industries and businesses to provide continued prosperity for our citizens over the next 50 years.
That is why as leader of the Liberal Party WA, I choose to take the portfolios of state development; energy; hydrogen; science; innovation and ICT.
I clearly understand that, as a state, we must quickly grasp the new business opportunities emerging in the world economy.
To that end, I will be engaging very closely with the business community in WA over the coming year to give direct input into my party’s policy development for the 2025 state election.
I strongly believe that all business operators, from small business to large companies, are equal stakeholders in the future prosperity of our state.
It will be an exciting process and I hope you will join me on this journey.
David Honey is the member for Cottesloe.
