Big assets in $3b WA sell-off

Written By Unknown on Minggu, 13 April 2014 | 22.16

Desalination plant in Binningup Source: Supplied

Utah Point, Port Hedland Source: Supplied

Fremantle Port Source: News Limited

Muja Power Station Source: Supplied

PREMIER Colin Barnett is planning to announce a $3 billion asset privatisation plan in the May 8 State Budget to help reduce debt.

And, The Sunday Times und­erstands key Liberals are making a last minute pitch for him to go even further – with some pushing for a $20 billion sell off.

Informed sources say Mr Barnett is keen on a $1 billion-a-year sale of public assets until the next election in 2017.

He is desperate to win back the state's AAA credit rating, which it lost in September, and re-establish the government's economic credentials.

The assets on his radar are:

The $1 billion southern Seawater Desalination Plant

The $300 million Utah Point bulk export facility at Port Hedland

Esperance Port

Muja Power Station

The poles and wires component of Western Power

Berths at Fremantle Port

Wastewater treatment plants

The Kwinana Bulk terminal

But the privatisation plan is triggering fierce debate within Liberal circles, with influential Liberals warning Mr Barnett his privatisation agenda does not go far enough to win back the AAA credit rating.

It is being argued Mr Barnett must rein in state debt which is heading towards a record $22 billion. The Opposition argues the debt is costing West Australians $1.7 billion a year in interest.

"There is a view he should be far bolder and dig far deeper into government assets," a Liberal source said yesterday..

"If he was willing, he could easily raise the $20 billion needed to pay off the debt. And if he did that, he could then recommit to some of the promises made in the 2013 state election."

Chamber of Commerce boss Deidre Willmott encouraged the sell off.

"We would encourage the Government to ... assess whether each piece of infrastructure is still something that is best delivered by the government rather than the private sector," she said.

Opposition finance spokeswoman Rita Saffioti said the Government could not be trusted "privatising anything".

Labor energy spokesman Bill Johnston said industry sources believed Muja was worth about $16 million. He said Western Power's "net position was $1.297 billion".

But he said Mr Barnett had promised at the 2013 election that Western Power and other electricity companies would not be privatised. He said selling off Western Power's responsibility for poles could be a recipe for disaster.

Treasurer Mike Nahan this week refused to give any indications as to what might be sold as part of the Government's privatisation agenda.


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