The PM is now threatening to cut funding to WA if Premier Colin Barnett goes ahead with the increase in mining royalties. This is a poorly design deal and has the Government in a lose lose situation.
Cut funding and all the premier has to do is increase the royalties to compensate.
Can't the PM ever get anything right?
http://www.theaustralian.com.au/national-affairs/budgets/colin-barnett-blows-2bn-hole-in-wayne-swans-budget-target/story-fn8gf1nz-1226059586044
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wa provides headache for swan on mining tax, page-29
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