WA Cabinet reshaped to mirror future of State’s economy

Today’s broad-brush reshuffle of the Cabinet that will lead the Labor Government’s third term in Western Australia has seen Premier Roger Cook reshape key portfolios, in a move that demonstrates significant insight into the policy areas that will likely shape the future of the State’s economic success.

The mainstream focus of this news has rightly centred on the elevation of Mirrabooka MLA and first-time Cabinet Minister Meredith Hammat to the major portfolios of Health and Mental Health – and while there may be advantages in taking over the stewardship of such a large and complex operation for the State with clean hands, she will no doubt be supported by two former Ministers for Health remaining within the Cabinet, in Amber-Jade Sanderson and Premier Cook himself.

In addition to that collegial support, in recognition of the major investments in infrastructure delivery require to support the stabilisation of the State’s health system, Premier Cook has lightened the load for Minister Hammat through the creation of the separate portfolio of Health Infrastructure. This will be driven by high-performing Cabinet Minister John Carey, in addition to his ongoing portfolios of Planning and Lands and the reshaped Housing and Works portfolio.

This is a clear acknowledgement by the State Government that it needs to continue its more proactive and hands-on role in delivering health and housing infrastructure to protect the standard of living in the State when it comes to access to affordable housing and access to health care, both of which may have influenced some voters in the recent election.

However, it is the re-alignment of the key economic development portfolios that may prove to be a master stroke by Premier Cook when it comes to continuing the positive engagement of the State’s key industrial base and export industries – something which has been a feature of the McGowan-Cook governments since first elected in 2017.

Premier Cook has held on to the portfolios that will be key to that ongoing success, re-assigning himself as Minister for State Development; Trade and Investment; and, perhaps most significantly, the newly-created portfolio of Economic Diversification.

While that sounds a bit generic, in practice it is the intersection of all the emerging sectors in this State that may give us a fighting chance to balance the books if the iron ore price enters a period of significant and sustained lows in response to global trade tremors and a possible resulting easing of demand.

Placing himself in this position gives him oversight and reason to directly intervene in sectors as diverse as rare earths and critical minerals mining and processing; ammonia production to supply to domestic customers and key trade partners; electricity generation from solar and wind, and the transmission infrastructure necessary to support its integration; and carbon capture and storage as a solution to WA’s traditional hard or impossible-to-abate industries like alumina refineries.

Further to his own workload, the Premier has handed the strategically significant and reshaped portfolios of Energy and Decarbonisation, Manufacturing, Skills and TAFE, and Pilbara to former high-profile Health Minister Amber-Jade Sanderson.

This State is leading the way in Australia with the turn down of coal-fired power generation, and in doing so has motivated the private sector to support this transition in diverse and innovative ways. However, as unpopular as it was to talk about gas in the lead-up to an election where climate is a key vote turner in some corners of the metropolitan area, WA will need a significant investment in a new base-load capable gas-fired power station somewhere north of Perth.

This is essential for two reasons: one, it will provide the spinning inertia required to stabilise the South West Interconnected System as we add more solar and wind generation in the Mid West and Gascoyne, where we have some of the best resources of both forms of renewables in the world; and two, because our existing fleet of gas-fired power stations were only ever designed as peaking plants, and continue to regularly operate in the proverbial red zone in periods of high demand to compensate for the reduction in coal-fired generation. The reality is that this will prove increasingly unreliable in the long term.

Trusted lieutenants Rita Saffioti and David Michael continue with their State-significant portfolios of Deputy Premier, Treasurer and Transport Minister, and Minister for Mines and Petroleum respectively. The Deputy Premier has also picked up Sport and Recreation, while Minister Michael has picked up Finance, Electoral Affairs, Goldfields-Esperance and Leader of the House to add to his workload.

That mention of Goldfield-Esperance is not only logical for Minister Michael to pick up given the mining-dependent economy in that region, it is also reflective of another key feature of this Cabinet reshuffle – with the appointment of a Minister responsible for each key region in the State, perhaps acknowledgment of the swing in regional electorates unhappy with the removal of their previous representation in the Legislative Council.

Minister Don Punch will take on the combined portfolios of Aboriginal Affairs, Water, Climate Resilience and South West. The combination of climate portfolios and Aboriginal Affairs is another sign that this Government has been listening to Traditional Owners, who believe they have significant knowledge and experience to share when it comes to managing the State’s lands and waters and making them more resilient to change.

The other two key assignments that will play a vital role in the State’s ongoing economic prosperity belong to two upper house members, being Minister Stephen Dawson with Regional Development, Ports, Science and Innovation, Medical Research and the Kimberley; and Minister Jackie Jarvis with Agriculture, Food, Fisheries, Forestry, Small Business and the Mid West.