ABC News 14 September 2012 3:50PM
The West Australian Premier has played down the impact of falling iron ore prices on the Australian economy.
Colin Barnett has told a business conference in Sydney, the impact of the mining industry should not be exaggerated or blamed for other economic problems.
He has also warned that while Chinese demand will continue to sustain WA, the Australian dollar cannot be relied on to cushion the economy.
"For decades, the Australian dollar has slavishly followed commodity prices," he said.
"This time we've seen commodity prices fall over the last few weeks, the Australian dollar hasn't followed it down, as the Australian dollar is seen as a safe haven in a troubled financial world.
"That protective mechanism is no longer there. I'm not being boastful about Western Australia, I hope it doesn't sound that way, I'm simply trying to make the point, we know what we're doing and you guys have got some problems, you need to wake up to it. "
Mr Barnett says the fall in the price of iron ore will not lead Australia into recession.
"It doesn't need to be exaggerated and it doesn't need to be blamed for other problems. As if a fall iron ore prices, one commodity, can drive the Australian economy into recession. I mean, the level of commentary is lacking on that," he said.
He also had a message for east coast commentators on the way WA manages the mining industry.
"I don't know what you think of Western Australians," he said.
"My state has been variously described as a dig it up, ship it out economy. Not true. The scale, the technology and the science that goes into mining is world leading, absolutely world leading.
"Other people think that we're just China's quarry, no, that's not true, and others think we're just bogans and billionaires. Well, if we are, we know what we're doing, just leave us alone."