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Category: Government and Politics / Privatisation and Deregulation / Electricity Energy and Utilities

Western Power sale plan to be revealed soon

Monday, 10 Oct 2016 11:48:35 | Andrew O'Connor

Dr Mike Nahan says sale plans for Western Power will be finalised soon. (ABC News: Mike Nahan)

The WA Government will reveal within weeks its plan to privatise electricity supplier Western Power, either by selling its poles or wires or selling off its debt, the WA Treasurer says.

Key points:

  • Government first flagged selling utility in 2015 budget
  • But plan stalled, government partners Nationals not sure they will support it
  • Now a plan to sell the utility's debt has been floated, with Nahan pledging to make clear final decision soon

The on-again, off-again proposal has been stalled since being announced in the May state budget, with Premier Colin Barnett concerned it would be a target of a scare campaign in next year's state election.

But after expressing doubt about the sale mid-year, last week he shifted ground again, flagging the potential sale of Western Power's $8 billion debt to Australian super funds.

Arriving for Cabinet, Treasurer Mike Nahan said the Government was exploring and finalising the privatisation options now.

"We'll go through a whole range of issues over the next few weeks then we will enunciate an approach that we're going to take to the transaction," he said.

Mr Nahan said there had already been strong interest in the sale of WA Government assets, from Australian superannuation funds.

"They all have lined up and made it quite clear that they will be in the front-running to buy any assets, particularly of Western Power and the port of Fremantle that we are willing to sell," he said.

But the Government still faces serious obstacles in its privatisation push.

The Liberal-National alliance government is divided on the issue, with the Nationals already blocking the port sale, and yet to decide on whether it will support selling Western Power.

WA Labor flatly rejects both ideas and has ruled out the asset sales if it wins office next March.

It has strong union support, including from the Electrical Trades Union (ETU), which has been campaigning against the plan.

Union super funds buying up state assets: Nahan

Mr Nahan accused the Labor and the unions of hypocrisy.

He said while the unions were criticising the deal, their super funds were among those buying former public assets around the country.

"Most of these super funds are aligned to the Labor Party ... and on one hand they are turning around, campaigning against it, and on the other hand turning around and buying them," he said.

The Treasurer also targeted WA Labor's spending and debt reduction plans, arguing they were mutually exclusive.

While Labor has promised to reduce debt, Dr Nahan said Labor had also promised $5 billion in capital spending.

He said Mr McGowan was offering West Australians a financial magic pudding.

"You cannot say you are going to reduce debt, increase capital (spending) by $5 billion and have that add up," he said.

AustraliaPlus


 

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