Sussan Ley, the Federal Opposition Leader, recently emphasized the critical economic role of Western Australia during her visit to Perth. Ley articulated that the state is not just essential for the national economy but serves as the “engine room” of Australia’s prosperity. This assertion comes as she engages with local businesses and industry leaders to discuss ways to enhance productivity and job creation.
Western Australia, which constitutes only 11 percent of Australia’s population, significantly contributes 17 percent of the country’s economic output and more than 45 percent of its exports. In the fiscal year 2023-24, the state’s resources sector recorded an impressive sales production value of $238 billion, with investments in mining and petroleum industries estimated at around $32 billion. The revenue generated from these sectors supports essential public services such as schools, hospitals, and infrastructure across the nation.
Addressing Productivity Challenges
Ley highlighted that despite the scale of Western Australia’s contributions, the broader national economic landscape is facing significant challenges. Australia is currently experiencing its worst productivity slump in 60 years, as reflected in the latest Intergenerational Report. It warns that without substantial reforms, living standards are unlikely to improve as they have in the past. Ley criticized the current Labor government for what she perceives as a lack of action on this front, stating that business investment as a share of GDP remains below trend.
She pointed out that small businesses, which account for nearly half of the private sector workforce and about a third of GDP, are struggling under increasing regulatory burdens. Many are not breaking even, with over 11,000 businesses failing last year alone. The rising tide of red tape has reportedly added 5,000 regulations in the past three years, making it challenging for businesses to thrive.
Ley asserted that the government must prioritize practical measures over bureaucratic processes. “Business owners tell me they want the government to stop making it harder to grow, harder to employ, and harder to invest,” she said. She emphasized the need for faster approvals and simpler rules, criticizing lengthy waits for project approvals, exemplified by the North West Shelf LNG development, which has faced a six-year delay.
Call to Action for Economic Growth
As Ley continues her discussions in Perth, she aims to gather insights from small business owners, resource leaders, and local communities. She believes these conversations are vital for understanding what drives success and what barriers exist. Ley has positioned the Coalition as a partner to enterprise, advocating for an approach focused on action rather than consultation.
She expressed a clear message: to achieve higher wages, stronger growth, and improved services, the government must take productivity seriously. “Real reform must begin with real listening,” she stated. The Coalition seeks to engage with employers directly and formulate policies that unlock growth opportunities.
Ley concluded her remarks by reiterating that governments do not create prosperity; instead, they either assist or hinder those who do. Her commitment to listening and acting on the needs of Western Australia’s economy underscores the potential for collaboration in restoring confidence and momentum in the national landscape.
