Western Australia's failure to secure a $25 billion LNG processing plant highlights the negative impact excessive regulation is having on business investment and economic growth in WA.

The State's peak business organisation, the Chamber of Commerce and Industry of Western Australia, is disappointed that the Northern Territory has been chosen over Western Australia’s Kimberley region for the multi-billion dollar gas processing project.

While CCI recognises it is the right of proponents to decide where and how they will invest their money, today’s decision highlights the need to streamline the State's unwieldy planning and approvals processes to promote Western Australia as a preferred destination to do business.

The decision is a huge blow to the State as the project would have injected an estimated $50 billion of income in the local economy and generated more than 2,000 jobs.

Although the project has been lost to WA, there remain opportunities for local industry participation. CCI will work closely with local companies and Inpex to help secure major contracts for WA in the construction, operation and ongoing servicing of the gas processing plant.

Today's decision should ring alarm bells for the new State Government, and highlight the damage that excessive red and green tape is causing to the WA economy, and business and industry of all sizes.

CCI calls on the Premier and his senior ministers to conduct an urgent review of the State's planning and environmental approvals system to reduce the regulatory burden on business and industry, and remove the duplications and overlaps that lead to needless delays and complications.

Western Australia's economy is the powerhouse of the Nation, largely fuelled by the booming resources sector. For a state and an economy that is heavily dependent on resources projects, and the wealth they generate, the Government can not afford to allow unnecessary regulation to stymie investment and growth.

CCI urges the new WA Government to work closely with business and industry to identify shortcomings in the planning and environmental approvals system.

While WA has been overlooked for this project, action is urgently needed to ensure the State is better able to compete for projects in the future.

Statement by CCI Executive Director, Industry Policy, Trevor Lovelle