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Pilbara to become low emissions industry hub as part of federal budget cash splash in WA

The budget sets aside $1.5 billion to turn the Pilbara into a low emissions energy hub. (Google Earth)

The federal budget hasn't delivered many surprises for WA, but that's to be expected with an election looming.

Over two visits to WA, the Prime Minister has already announced many of the major spending commitments in this year's budget, keen to get voters on side as early as possible.

And there's no doubt this year's "cash splash" budget contains a number of items aimed at helping the government hang on to the 10 seats it holds in the west as best it can.

So now the dust is starting to settle, what's in it for WA? 

What are the big ticket items?

Basically, every significant budget item in WA has already been announced.

Scott Morrison has splashed a lot of cash in WA in an effort to woo voters. (ABC News: Rebecca Trigger)

That includes:

All up, more than $2 billion in this year's budget has been dedicated to infrastructure projects in WA.

There's also $375 million that has been set aside for a new cancer centre in Perth, but the state government is yet to sign off on its end of that bargain.

The centre would service public and private patients and have outreach into regional areas. (Supplied: Hames Sharley Architects )

"We have to go through the business case process in relation to it, because there's building it but there's also operating it," Premier Mark McGowan said earlier this week.

"Whilst we remain committed to it, we actually have to go through that process before such time as we commit money, which is proper planning and proper business case processes."

He said that included finding the right location, staffing model and funding arrangements.

Rural medical training in WA will receive a boost, with $36.2 million to be shared over the next four years by two "university departments of rural health" in the South West and Goldfields.

WA’s GST floor, guaranteeing it at least 70 cents in the dollar, will also take effect from the upcoming financial year as planned.

And even though the state government has committed to not building the Roe 8 and 9 projects, the Commonwealth is still leaving $1.2 billion on the table if WA ever changes its mind.

Is there anything new?

The only major fresh investment in yesterday's budget is $1.5 billion to turn the Pilbara into "a major hub for low emissions industries".

That will include mining, mineral processing and manufacturing projects across hydrogen and renewable energy industries.

Money will go towards facilitating more environmentally friendly iron ore projects in the Pilbara. (ABC News: Rachel Pupazzoni)

The government says that money will be spent:

  • Luring low emission metals and iron ore production projects to the region
  • Improving Port Hedland's Lumsden Point and Dampier port to increase renewable energy exports
  • Upgrading the Pilbara's power grid infrastructure
  • Enhancing The Tanami Road to improve access to mining projects and tourism destinations.

It's part of $7.1 billion that has been set aside to help grow four regional areas in WA, the Northern Territory, Queensland and New South Wales.

A program that provides culturally-appropriate health and wellbeing checks when Indigenous people are taken into custody in WA and the NT will be extended for another year with an extra $1.9 million.

And the Aboriginal Legal Service will get $2 million over two years to expand its Youth Engagement Program in the Kimberley and Pilbara to help young Aboriginal people in their interactions with the court system.

Another $678 million will also be put towards sealing 1,000km of the Outback Way, a 2,720km road which connects Laverton in WA with Winton in Queensland.

WA’s bottom line has been helped by high iron ore prices, but the Commonwealth is expecting those to drop from about $135 per tonne now to about $55 per tonne by the end of September, below the $66 per tonne figure used in WA’s last state budget.

The Commonwealth is also preparing for the possibility it may be dragged into a dispute brought by businessman Clive Palmer over his Balmoral South iron ore project — the same one over which he tried to sue WA for more than $30 billion.

"If proceedings are commenced and Australia is unsuccessful, Australia would be liable for any compensation found to be payable," budget papers read.

How will it impact the election?

It's expected the Liberals will face an uphill battle to retain the 10 seats they currently hold in the state for a range of reasons.

Those reasons include the popularity of Premier Mark McGowan, and the loss of key players like Swan MP Steve Irons and former attorney-general Christian Porter.

On top of that, the state branch of the Liberal Party was significantly wounded by the last state election, limiting what they can do to help their federal counterparts.

Those concerns are almost certainly part of the reason the Prime Minister has already made two trips west, even before the election has been called.

And there's little doubt it's contributed to the money that has already been promised to the state before the campaign properly begins.

Mark McGowan and Scott Morrison appeared happy in each other's presence during the prime minister's visit earlier this month.  (ABC News: James Carmody)

Those funds have also helped Scott Morrison make Mr McGowan more of a political ally than he's been over the last few years of the pandemic.

The Premier has obviously welcomed the significant investments in WA, including for Labor's flagship Metronet projects.

But whether that money will be enough to woo back disillusioned voters remains to be seen.

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