Dispute over cost of gas crisis
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Eric Ripper and the CCI are at loggerheads about the financial impact of the gas crisis. (ABC)
The gas crisis is expected to cost the West Australian economy $1.8 billion over five years according to figures released by the Department of Treasury and Finance.
It is estimated the disruption to gas supply reduced the state's economic growth by half of one per cent in the 2007/2008 financial year.
But the Treasurer Eric Ripper says growth in the economy is expected to be back on track in 2008/2009.
He says there is no doubt the explosion at Varanus Island in June has cost some companies significantly.
"But a 0.2 per cent reduction in production over a five year period in the context of a very strong economy shows that we've come through it quite well," he said.
More significant
The Chamber of Commerce and Industry (CCI) says the cost of the crisis is far more significant than indicated by the Treasurer.
The Chief Executive of the CCI, James Pearson, says its figures show the crisis will have cost $6 billion dollars by the time gas supply is restored.
"People will understand that companies pay a proportion of their profit as tax, so so if there's a particular dollar figure which is an impact on state revenue then that is just a fraction of the total loss experienced by West Australian business," he said.
The Shadow Treasurer, Steve Thomas, says while the WA economy is able to absorb the losses associated with the crisis, individual businesses have been hit hard.
He says the Government needs to ensure the companies are kept informed about when their supply will be restored.
"In the meantime, treasury figures that say that the Western Australian economy are going to survive are of little value to those people who are going to lose their jobs if their particular company is not going to receive and adequate gas flow in the next couple of months," he said.
