GST compensation funds roads from Valley to Muchea

Pearce residents from the Swan Valley through to Muchea and surrounds are set to be major beneficiaries of the $499 million road infrastructure.

The money has been pulled out of GST revenue to compensate for the State�s falling gst figures in funding compared to other states.

The Swan Valley Bypass and the Tonkin Grade Separation and Great Eastern Highway upgrades between Greenmount and Mundaring will all come under new Federal government funding.

Prime Minister Tony Abbott flew to Perth to make the announcements one week ago.

Member for Swan Hills, Frank Alban, welcomed the upgrades.

�The State Government has committed $12 million to these essential upgrades to Great Eastern Highway,� Mr Alban said.

�I believe many Hills residents, as well as those in the trucking industry, will appreciate the Great Eastern highway upgrades.�

The NorthLink WA project will get $138 million more, comprising $84 million for Tonkin Highway and $54 million for the Swan Valley bypass. And an upgrade of Reid Highway at Malaga Drive will get $67 million, providing 80 per cent of funding for the project from the Federal Government.

The money will not have to be repaid. But in return for the bailout, Mr Abbott said the Barnett Government must �pursue further microeconomic reforms�.

�WA will be able to access significant Federal incentive payments towards further investment in job-creating economic infrastructure, when reinvesting the proceeds of any privatisations into such infrastructure projects,� Mr Abbott said.

Premier Colin Barnett said he appreciated Mr Abbott�s acknowledgment WA was being treated unfairly.

�This is the first time an Australian prime minister has actually acted to compensate WA for its unfair share of the GST,� he said.

�We still face a tight Budget, but this will help,� the Premier said.

Mr Porter said he had been lobbying for five years at both a State and Federal level for the Prime Minister to help WA. He was delighted much of the money would be spent on roads in his electorate.

Mr Porter said Mr Abbott�s decision had compensated WA in a way that reflected a nominal freeze in the decline of WA�s GST at the 2014/15 floor of 37 cents in the dollar.