flag of convenience Posted April 13, 2015 Share Posted April 13, 2015 Bhp have to sell iron ore at $35 a tonne just to break even now its below $45 a tonne. Makes you wonder whats happened to the money when they where getting $ 150 a tonne. greedy bastards ,now the chickens have come home to roost as they say and their is no money left for further expansion. Thanks guys for your work now naff off. Reading some economic reports and threads from the Eastern States there is a lot of failure to understand how WA got in this state along with anger at the terms of bailout wanted. Quote Link to comment Share on other sites More sharing options...
Paul1Perth Posted April 13, 2015 Share Posted April 13, 2015 Bhp have to sell iron ore at $35 a tonne just to break even now its below $45 a tonne. Makes you wonder whats happened to the money when they where getting $ 150 a tonne. greedy bastards ,now the chickens have come home to roost as they say and their is no money left for further expansion. Thanks guys for your work now naff off. What happened to the money? Didn't you see the record profits they have made year on year for the last few years? I'm sure the shareholders and the bosses loved it when they got the bonuses. That's why Colin Barnett had a scathing attack on them and RIO last week. Quote Link to comment Share on other sites More sharing options...
Guest Guest66881 Posted April 13, 2015 Share Posted April 13, 2015 Free up the spud debacle and we might get some help? Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted April 13, 2015 Share Posted April 13, 2015 What happened to the money? Didn't you see the record profits they have made year on year for the last few years? I'm sure the shareholders and the bosses loved it when they got the bonuses. That's why Colin Barnett had a scathing attack on them and RIO last week. I'm afraid WA got shafted. It was thought the mining would go on for decades and the holes in the ground would expand. Mustn't upset the overseas seas mining concerns at any cost. Allow them to almost dictate how much tax was to be paid. Shafted. Time has passed and very little to show for it. Perth has/will become swankier. A new hospital full of teething problems. A city still too expensive for the average person to really relax. Well done Barnet and WA. Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted April 13, 2015 Share Posted April 13, 2015 Free up the spud debacle and we might get some help? We could turn to potatoes for salvation as a cash crop and import cheap labour to harvest them I suppose. From mining state to Spud state. Better luck there? Quote Link to comment Share on other sites More sharing options...
beach pig Posted April 13, 2015 Share Posted April 13, 2015 What happened to the money? Didn't you see the record profits they have made year on year for the last few years? I'm sure the shareholders and the bosses loved it when they got the bonuses. That's why Colin Barnett had a scathing attack on them and RIO last week. Exactly mate their is plenty of iron ore but its not as viable to produce it anymore, thus layoffs throughout the west.and when the miners go everything down the chain goes. Quote Link to comment Share on other sites More sharing options...
Guest Guest66881 Posted April 13, 2015 Share Posted April 13, 2015 WA propped up other states still does doesn't it? Yet they have all turned against helping WA out in the short term because of a figure set during the BOOM times, is that right? So why are two states contributing less than WA but not willing to help us out? Three questions/queries i know but all this sounds like greed over greed to me or have i got that wrong to? Quote Link to comment Share on other sites More sharing options...
beach pig Posted April 13, 2015 Share Posted April 13, 2015 What happened to the money? Didn't you see the record profits they have made year on year for the last few years? I'm sure the shareholders and the bosses loved it when they got the bonuses. That's why Colin Barnett had a scathing attack on them and RIO last week. Record profits will be a thing of the past mate.where are those profits now. Certainly not in the hands of Colin Barnett and his government put away for a rainy day.look the minerals will always be there but the industry needed a correction.too many thought the gravy train would go on and on. Quote Link to comment Share on other sites More sharing options...
Guest Guest66881 Posted April 13, 2015 Share Posted April 13, 2015 Hockey and his idea: A change in the way the Commonwealth Grants Commission treats WA's iron ore royalty revenue will cost the State a whopping $664 million of GST next year if Federal Treasurer Joe Hockey follows its recommendations. In its GST methodology review released last week, the CGC has departed from its previous treatment of WA's royalties from iron ore "fines". In assessing the States' revenue-raising capabilities for the GST carve-up, the CGC had classified royalties as "low rate" or "high rate". For the past four years the CGC had been explicitly directed, first by former Labor treasurer Wayne Swan and then by Mr Hockey, to treat royalties from fines as "low rate". But that direction was not given for the 2015 methodology review and the CGC now treats all iron ore royalties the same. The effect of the change will be a cut in WA's GST share of $664 million, which is partly offset by $434 million because of another methodology change, which puts minerals in one of eight groups instead of two. The revelation prompted WA shadow treasurer Ben Wyatt to accuse Mr Hockey and his State counterpart Mike Nahan of dropping the ball. "When you actually read the CGC report, it is clear that Joe Hockey changed the methodology in how the CGC treats iron ore fines to hurt WA with a massive $664 million extra loss of GST," Mr Wyatt said. "Even worse is that it is clear that the Barnett Government dropped the ball and did not argue for Mr Hockey to keep the same methodology as had been previously used by Mr Swan and, as a result of this oversight, WA has lost a further $664 million." Mr Hockey was travelling to New York yesterday and was unavailable to comment. Dr Nahan said Mr Hockey and Mr Swan had "overruled" the CGC in the past but this was a "one-off". "This time the CGC shifted away from the old treatment to a mineral by mineral (treatment), thereby eliminating the ability of the Federal Treasurer to treat fines separately," Dr Nahan said. Although the WA Treasurer has argued for annual assessments of revenue capacity instead of the three-year average - which is catching WA in the double crunch of falling GST grants amid falling iron ore prices - the CGC's report sounds a note of warning. It says WA's total GST receipts would have been $7 billion lower over the past four years had Dr Nahan's preferred methodology been used. Dr Nahan disputed the figure, saying the CGC had failed to consider the full range of costs WA had incurred in developing the iron ore industry. Federal Finance Minister Mathias Cormann has proposed freezing WA's GST distribution for 2015-16 at the existing level of 38 cents in the dollar instead of the CGC's proposed 30 cents. This would mean WA would get $467 million more than the CGC has proposed. Freezing GST relativities would lead to Queensland losing $577 million and South Australia $263 million. Victoria's share would fall $171 million. But NSW would be better off by $535 million under a freeze and the ACT would improve its return by $47 million. WA senator Dean Smith said a freeze of the GST relativities was a silver medal. "A gold medal would be the freeze coupled with a commitment to impose a floor under which relativities for any State or Territory could not fall," Senator Smith said. "The commitment to a floor will benefit WA over the short term but will act as an insurance policy for States like Queensland and South Australia that are expected to experience strong economic conditions over the medium term." Senator Smith cautioned his Federal colleagues against being too prescriptive about possible economic reforms in WA, saying the Premier and State Treasurer were "best placed to develop an economic program". But depressed iron ore prices are not only affecting the WA Budget.The West Australian understands that Federal Treasury is recasting the Federal Budget on gloomy forecasts that predict the price of iron ore staying under $50 a tonne for the foreseeable future. Quote Link to comment Share on other sites More sharing options...
beach pig Posted April 13, 2015 Share Posted April 13, 2015 WA propped up other states still does doesn't it?Yet they have all turned against helping WA out in the short term because of a figure set during the BOOM times, is that right? So why are two states contributing less than WA but not willing to help us out? Three questions/queries i know but all this sounds like greed over greed to me or have i got that wrong to? Yep your right and Western Australia is the greediest of them all and they have the cheek to ask for handouts.its a bit like a lottery winner who wins 5 mill then goes on the dole after a year. Quote Link to comment Share on other sites More sharing options...
bristolman Posted April 13, 2015 Share Posted April 13, 2015 Record profits will be a thing of the past mate.where are those profits now. Certainly not in the hands of Colin Barnett and his government put away for a rainy day.look the minerals will always be there but the industry needed a correction.too many thought the gravy train would go on and on. I am looking at this very much as an outsider as we don't really here much about it here in the UK but it sound's as though the profits went to shareholders and often overseas based companies and very little went to the WA Government war chest for when times got tough. Quote Link to comment Share on other sites More sharing options...
beach pig Posted April 13, 2015 Share Posted April 13, 2015 I am looking at this very much as an outsider as we don't really here much about it here in the UK but it sound's as though the profits went to shareholders and often overseas based companies and very little went to the WA Government war chest for when times got tough. Exactly right mate.feel really sorry for those who invested their lives there recently in property etc and want to sell soon.it must be the worst economic mismanagement in recent years and they want a bail out?lmao Quote Link to comment Share on other sites More sharing options...
VERYSTORMY Posted April 13, 2015 Share Posted April 13, 2015 I am looking at this very much as an outsider as we don't really here much about it here in the UK but it sound's as though the profits went to shareholders and often overseas based companies and very little went to the WA Government war chest for when times got tough. No - Colin blew the money. As the premier of Tasmania said "He spends like a drunken sailor". But we have Elizabeth Quay to look forward to - destroyed the esplanade to build a new water area surrounded by offices that because Perth office space is half empty, will sit like a ghost town. Quote Link to comment Share on other sites More sharing options...
VERYSTORMY Posted April 13, 2015 Share Posted April 13, 2015 What happened to the money? Didn't you see the record profits they have made year on year for the last few years? I'm sure the shareholders and the bosses loved it when they got the bonuses. That's why Colin Barnett had a scathing attack on them and RIO last week. No Paul, WA and state made plenty of cash from minerals - but chose to blow it. Hence why Hockey is warning of a nasty budget to come - he has a huge black hole and is warning that there will be cuts across the board with no area to be spared Quote Link to comment Share on other sites More sharing options...
bristolman Posted April 13, 2015 Share Posted April 13, 2015 No - Colin blew the money. As the premier of Tasmania said "He spends like a drunken sailor". But we have Elizabeth Quay to look forward to - destroyed the esplanade to build a new water area surrounded by offices that because Perth office space is half empty, will sit like a ghost town. Ah right so they got the revenue and the benefit from the mining but blew it as didn't put any aside ? Now they are coming cap in hand ? Quote Link to comment Share on other sites More sharing options...
VERYSTORMY Posted April 13, 2015 Share Posted April 13, 2015 Ah right so they got the revenue and the benefit from the mining but blew it as didn't put any aside ? Now they are coming cap in hand ? Correct, and that is why the other states are not happy about it. Also, a bit rich given that before the boom, WA was being supported by the rest. But, hey, not only do we have a lot of new empty offices and the announcement that Elizabeth quay will have two burger bars - the project has cost billions - but we can also sit and admire the new office Colin built for himself for huge sums of money. Imagine taking a teenage girl to London for the first time, giving her a credit card and telling her to go for it. Well, that is a good analogy for WA. Quote Link to comment Share on other sites More sharing options...
Bobj Posted April 13, 2015 Share Posted April 13, 2015 That boom as related in your time came when WA was riding of the sheep's back and agriculture. Of course it was big, WA was a sleepy backward place, and I know very well what Port Hedland was and the new towns developed in the Pilbara. Company towns. It changed WA at the time and many prospered. This boom I'm afraid was bigger and has impacted the entire nation. I believe 40% of national revenue was coming off the back of ore and coal at its height. That is a massive blow to any economy when in decline. It is hard to overstate how massive it was for the entire nation. Not just WA. And you still cannot, or will not see that virtually all the infrastucture was built from the 1960s to the 1980s and that, my friend, is the direct result of the big profits in the 2000s. Speculate to accumulate. All one very big boom time. Cheers, Bobj. Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted April 14, 2015 Share Posted April 14, 2015 And you still cannot, or will not see that virtually all the infrastucture was built from the 1960s to the 1980s and that, my friend, is the direct result of the big profits in the 2000s. Speculate to accumulate. All one very big boom time. Cheers, Bobj. I know exactly the result of the infrastructure boom in the 60's that paved the way to the boom of recent times. I already acknowledged it woke up a sleepy agricultural some would say backwater. Not sure what your beef is about. Of course that was big. This one has transformed the economy of WA and especially the city of Perth, which has/is under going transformation in almost every aspect. It has driven up prices making Perth one of the most expensive cities found anywhere. It has made Perth unaffordable to many unless live very far out, it has provided some 40% of national earnings enriching other states as well. It is known as the biggest boom experienced in a hundred years. Sorry you missed this particular one. Just how it goes. At least you can say you were part of the early days development to what came later. Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted April 14, 2015 Share Posted April 14, 2015 No Paul, WA and state made plenty of cash from minerals - but chose to blow it. Hence why Hockey is warning of a nasty budget to come - he has a huge black hole and is warning that there will be cuts across the board with no area to be spared I doubt there will be another attempt at a nasty budget after the last unsuccessful attempt. If they are returned though all bets are off and extreme pain can be expected. Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted April 14, 2015 Share Posted April 14, 2015 Exactly mate their is plenty of iron ore but its not as viable to produce it anymore, thus layoffs throughout the west.and when the miners go everything down the chain goes. I believe we are close to the edge in pricing at the moment to breakeven. Best that can be hoped will be a return or near enough to pre boom conditions and coast along. Still be a lot of pain with the reduction but surely could adjust if that level maintained. We would need deflation to bring prices, especially housing back to sane levels. Very hard to see how it will pan out. Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted April 14, 2015 Share Posted April 14, 2015 Yep your right and Western Australia is the greediest of them all and they have the cheek to ask for handouts.its a bit like a lottery winner who wins 5 mill then goes on the dole after a year. Not forgetting a Conservative(Liberal) government, supposedly knowing for their economic superiority got us into the mess we find ourselves. Quote Link to comment Share on other sites More sharing options...
Paul1Perth Posted April 14, 2015 Share Posted April 14, 2015 Exactly right mate.feel really sorry for those who invested their lives there recently in property etc and want to sell soon.it must be the worst economic mismanagement in recent years and they want a bail out?lmao They're not asking for a bail out bp. WA are going to get back 38 cents for every dollar GST collected, the rest of the states are getting the bail out and have been getting it from WA for the last few years. I've never really heard Mike Nahan being interviewed before last week but him and Colin Barnett spoke a lot of sense. Obviously treasurers from the other states aren't going to agree with him and just accept they will lose some GST, they've all got to be seen to be doing the right thing for their states. He made a very good point about SA and Tasmania though. They've been out and out against developing their natural resources, SA trying to stop any exploration or fracking taking place and Tasie had a thriving timber industry with Gunns going from one of the wealthiest companies in the World into voluntary administration in 2012. Fine, they have beautiful forrests and wilderness but no jobs. There has to be a balance between the environment and sustainability of people being able to live there. Quote Link to comment Share on other sites More sharing options...
flybyknight Posted April 14, 2015 Share Posted April 14, 2015 They're not asking for a bail out bp. WA are going to get back 38 cents for every dollar GST collected, the rest of the states are getting the bail out and have been getting it from WA for the last few years. I've never really heard Mike Nahan being interviewed before last week but him and Colin Barnett spoke a lot of sense. Obviously treasurers from the other states aren't going to agree with him and just accept they will lose some GST, they've all got to be seen to be doing the right thing for their states. He made a very good point about SA and Tasmania though. They've been out and out against developing their natural resources, SA trying to stop any exploration or fracking taking place and Tasie had a thriving timber industry with Gunns going from one of the wealthiest companies in the World into voluntary administration in 2012. Fine, they have beautiful forrests and wilderness but no jobs. There has to be a balance between the environment and sustainability of people being able to live there. i think it goes beyond that, demand is declining for the industries Australia's core industries. we can't dig our way out of this one. coal, by many measures is in structural decline its not picking up, even with abbott burning as much as possible here in aus it's still hurting. gas oh gas the savior fuel, current plans for a NT to east pipeline going ahead, in light of a 17% reduction in gas usage! it's ok it'll go on your bill for years, and with self generation gets even cheaper more people will disconnect sending gas bills even higher. even iron ore has taken a right kicking, its not good. changes are needed, but these changes will be made at the very last second when foreign companies have lobbied and mined this country into a massive recession. this is one of the major flaws in a democratic system, money talks. it's gonna sting. Quote Link to comment Share on other sites More sharing options...
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