❓ Minister MacTiernan criticises the previous government's Westrail Freight privatisation, citing financial losses and lack of promised investment, while defending current government investments.
AnsweredQoN 1211Legislative Assembly
QuestionView source ↗
I refer to the coalition’s policy of privatisation. Will the minister advise what was the outcome of the privatisation of the Westrail Freight network and what privatisation of the transport network was undertaken or planned by the previous Government? Ms A.J. MacTIERNAN
AnswerView source ↗
I thank the member for the question and for his interest in matters regarding freight. He has been a great supporter of the investments that we have made in his electorate in ports, roads and rail. The Westrail privatisation was a real doozey. It will go down in history as one of the great debacles of privatisation. Members will recall that in December 2002 the rolling stock and the 49-year lease for the rail track of the freight network of Westrail was sold to an operator. At the time we were told that a $585 million up-front payment would be made and a commitment would be given to invest over $400 million. Statements were made that Western Australia would receive a net benefit of some $985 million. However, we had our doubts about that at the time and those doubts have since been confirmed by the Auditor General. It became clear that the Western Australian Government Railways financial statements reported that this sale netted a loss of $116 million - and that is just the freight business. Westrail was sold off when the Leader of the Opposition was in Government. He used to tell us what was going on with some of his colleagues and he told us that the former Government had to sell Westrail because of the burgeoning debt from the road-fest that was being undertaken by the previous National Party ministers. They said not to worry about the debt blowing out. They said that they would fix it and retire the debt by the sale of Westrail Freight. However, after the sale, the Government was left with a debt of $331 million on the freight system alone. The Westrail Freight debt used to be 100 per cent serviced by the revenue that the Government got from running the Westrail business. Through this great sale, we lost $116 million and were left with a debt of $331 million. I give the House some idea of the consequences of that for Western Australians today. In addition to that debt, there was a post-sale management cost between $3 million and $4 million. In all, each year the taxpayers of this State pay $25 million to fund that failed privatisation. That is money that would be much better spent on priorities such as health, education and policing. We at least thought that we would get a $400 million upgrade of our rail system. However, when we got into government we found that this was just a mirage; there was absolutely no contractual obligation to spend that money. It was, as we said, a $1 billion Criddle fiddle. Withdrawal of Remark Mr R.F. JOHNSON: Point of order - Several members interjected. Ms A.J. MacTIERNAN: Mr Speaker, I withdraw. Mr R.F. JOHNSON: Mr Speaker - The SPEAKER: Sit down. Mr C.J. Barnett: Sorry? The SPEAKER: The minister withdrew the comment. Ms A.J. MacTIERNAN: I could continue with many, many stories of privatisation in the transport area - Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
Ms A.J. MacTIERNAN replied: I thank the member for the question and for his interest in matters regarding freight. He has been a great supporter of the investments that we have made in his electorate in ports, roads and rail. The Westrail privatisation was a real doozey. It will go down in history as one of the great debacles of privatisation. Members will recall that in December 2002 the rolling stock and the 49-year lease for the rail track of the freight network of Westrail was sold to an operator. At the time we were told that a $585 million up-front payment would be made and a commitment would be given to invest over $400 million. Statements were made that Western Australia would receive a net benefit of some $985 million. However, we had our doubts about that at the time and those doubts have since been confirmed by the Auditor General. It became clear that the Western Australian Government Railways financial statements reported that this sale netted a loss of $116 million - and that is just the freight business. Westrail was sold off when the Leader of the Opposition was in Government. He used to tell us what was going on with some of his colleagues and he told us that the former Government had to sell Westrail because of the burgeoning debt from the road-fest that was being undertaken by the previous National Party ministers. They said not to worry about the debt blowing out. They said that they would fix it and retire the debt by the sale of Westrail Freight. However, after the sale, the Government was left with a debt of $331 million on the freight system alone. The Westrail Freight debt used to be 100 per cent serviced by the revenue that the Government got from running the Westrail business. Through this great sale, we lost $116 million and were left with a debt of $331 million. I give the House some idea of the consequences of that for Western Australians today. In addition to that debt, there was a post-sale management cost between $3 million and $4 million. In all, each year the taxpayers of this State pay $25 million to fund that failed privatisation. That is money that would be much better spent on priorities such as health, education and policing. We at least thought that we would get a $400 million upgrade of our rail system. However, when we got into government we found that this was just a mirage; there was absolutely no contractual obligation to spend that money. It was, as we said, a $1 billion Criddle fiddle. Withdrawal of Remark Mr R.F. JOHNSON: Point of order - Several members interjected. Ms A.J. MacTIERNAN: Mr Speaker, I withdraw. Mr R.F. JOHNSON: Mr Speaker - The SPEAKER: Sit down. Mr C.J. Barnett: Sorry? The SPEAKER: The minister withdrew the comment. Ms A.J. MacTIERNAN: I could continue with many, many stories of privatisation in the transport area - Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
I thank the member for the question and for his interest in matters regarding freight. He has been a great supporter of the investments that we have made in his electorate in ports, roads and rail. The Westrail privatisation was a real doozey. It will go down in history as one of the great debacles of privatisation. Members will recall that in December 2002 the rolling stock and the 49-year lease for the rail track of the freight network of Westrail was sold to an operator. At the time we were told that a $585 million up-front payment would be made and a commitment would be given to invest over $400 million. Statements were made that Western Australia would receive a net benefit of some $985 million. However, we had our doubts about that at the time and those doubts have since been confirmed by the Auditor General. It became clear that the Western Australian Government Railways financial statements reported that this sale netted a loss of $116 million - and that is just the freight business. Westrail was sold off when the Leader of the Opposition was in Government. He used to tell us what was going on with some of his colleagues and he told us that the former Government had to sell Westrail because of the burgeoning debt from the road-fest that was being undertaken by the previous National Party ministers. They said not to worry about the debt blowing out. They said that they would fix it and retire the debt by the sale of Westrail Freight. However, after the sale, the Government was left with a debt of $331 million on the freight system alone. The Westrail Freight debt used to be 100 per cent serviced by the revenue that the Government got from running the Westrail business. Through this great sale, we lost $116 million and were left with a debt of $331 million. I give the House some idea of the consequences of that for Western Australians today. In addition to that debt, there was a post-sale management cost between $3 million and $4 million. In all, each year the taxpayers of this State pay $25 million to fund that failed privatisation. That is money that would be much better spent on priorities such as health, education and policing. We at least thought that we would get a $400 million upgrade of our rail system. However, when we got into government we found that this was just a mirage; there was absolutely no contractual obligation to spend that money. It was, as we said, a $1 billion Criddle fiddle. Withdrawal of Remark Mr R.F. JOHNSON: Point of order - Several members interjected. Ms A.J. MacTIERNAN: Mr Speaker, I withdraw. Mr R.F. JOHNSON: Mr Speaker - The SPEAKER: Sit down. Mr C.J. Barnett: Sorry? The SPEAKER: The minister withdrew the comment. Ms A.J. MacTIERNAN: I could continue with many, many stories of privatisation in the transport area - Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
It became clear that the Western Australian Government Railways financial statements reported that this sale netted a loss of $116 million - and that is just the freight business. Westrail was sold off when the Leader of the Opposition was in Government. He used to tell us what was going on with some of his colleagues and he told us that the former Government had to sell Westrail because of the burgeoning debt from the road-fest that was being undertaken by the previous National Party ministers. They said not to worry about the debt blowing out. They said that they would fix it and retire the debt by the sale of Westrail Freight. However, after the sale, the Government was left with a debt of $331 million on the freight system alone. The Westrail Freight debt used to be 100 per cent serviced by the revenue that the Government got from running the Westrail business. Through this great sale, we lost $116 million and were left with a debt of $331 million. I give the House some idea of the consequences of that for Western Australians today. In addition to that debt, there was a post-sale management cost between $3 million and $4 million. In all, each year the taxpayers of this State pay $25 million to fund that failed privatisation. That is money that would be much better spent on priorities such as health, education and policing. We at least thought that we would get a $400 million upgrade of our rail system. However, when we got into government we found that this was just a mirage; there was absolutely no contractual obligation to spend that money. It was, as we said, a $1 billion Criddle fiddle. Withdrawal of Remark Mr R.F. JOHNSON: Point of order - Several members interjected. Ms A.J. MacTIERNAN: Mr Speaker, I withdraw. Mr R.F. JOHNSON: Mr Speaker - The SPEAKER: Sit down. Mr C.J. Barnett: Sorry? The SPEAKER: The minister withdrew the comment. Ms A.J. MacTIERNAN: I could continue with many, many stories of privatisation in the transport area - Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
Through this great sale, we lost $116 million and were left with a debt of $331 million. I give the House some idea of the consequences of that for Western Australians today. In addition to that debt, there was a post-sale management cost between $3 million and $4 million. In all, each year the taxpayers of this State pay $25 million to fund that failed privatisation. That is money that would be much better spent on priorities such as health, education and policing. We at least thought that we would get a $400 million upgrade of our rail system. However, when we got into government we found that this was just a mirage; there was absolutely no contractual obligation to spend that money. It was, as we said, a $1 billion Criddle fiddle. Withdrawal of Remark Mr R.F. JOHNSON: Point of order - Several members interjected. Ms A.J. MacTIERNAN: Mr Speaker, I withdraw. Mr R.F. JOHNSON: Mr Speaker - The SPEAKER: Sit down. Mr C.J. Barnett: Sorry? The SPEAKER: The minister withdrew the comment. Ms A.J. MacTIERNAN: I could continue with many, many stories of privatisation in the transport area - Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
Several members interjected. Ms A.J. MacTIERNAN: Mr Speaker, I withdraw. Mr R.F. JOHNSON: Mr Speaker - The SPEAKER: Sit down. Mr C.J. Barnett: Sorry? The SPEAKER: The minister withdrew the comment. Ms A.J. MacTIERNAN: I could continue with many, many stories of privatisation in the transport area - Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
Ms A.J. MacTIERNAN: Mr Speaker, I withdraw. Mr R.F. JOHNSON: Mr Speaker - The SPEAKER: Sit down. Mr C.J. Barnett: Sorry? The SPEAKER: The minister withdrew the comment. Ms A.J. MacTIERNAN: I could continue with many, many stories of privatisation in the transport area - Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
Mr R.F. JOHNSON: Mr Speaker - The SPEAKER: Sit down. Mr C.J. Barnett: Sorry? The SPEAKER: The minister withdrew the comment. Ms A.J. MacTIERNAN: I could continue with many, many stories of privatisation in the transport area - Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
The SPEAKER: Sit down. Mr C.J. Barnett: Sorry? The SPEAKER: The minister withdrew the comment. Ms A.J. MacTIERNAN: I could continue with many, many stories of privatisation in the transport area - Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
Mr C.J. Barnett: Sorry? The SPEAKER: The minister withdrew the comment. Ms A.J. MacTIERNAN: I could continue with many, many stories of privatisation in the transport area - Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
The SPEAKER: The minister withdrew the comment. Ms A.J. MacTIERNAN: I could continue with many, many stories of privatisation in the transport area - Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
Ms A.J. MacTIERNAN: I could continue with many, many stories of privatisation in the transport area - Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
Ms A.J. MacTIERNAN replied: I thank the member for the question and for his interest in matters regarding freight. He has been a great supporter of the investments that we have made in his electorate in ports, roads and rail. The Westrail privatisation was a real doozey. It will go down in history as one of the great debacles of privatisation. Members will recall that in December 2002 the rolling stock and the 49-year lease for the rail track of the freight network of Westrail was sold to an operator. At the time we were told that a $585 million up-front payment would be made and a commitment would be given to invest over $400 million. Statements were made that Western Australia would receive a net benefit of some $985 million. However, we had our doubts about that at the time and those doubts have since been confirmed by the Auditor General. It became clear that the Western Australian Government Railways financial statements reported that this sale netted a loss of $116 million - and that is just the freight business. Westrail was sold off when the Leader of the Opposition was in Government. He used to tell us what was going on with some of his colleagues and he told us that the former Government had to sell Westrail because of the burgeoning debt from the road-fest that was being undertaken by the previous National Party ministers. They said not to worry about the debt blowing out. They said that they would fix it and retire the debt by the sale of Westrail Freight. However, after the sale, the Government was left with a debt of $331 million on the freight system alone. The Westrail Freight debt used to be 100 per cent serviced by the revenue that the Government got from running the Westrail business. Through this great sale, we lost $116 million and were left with a debt of $331 million. I give the House some idea of the consequences of that for Western Australians today. In addition to that debt, there was a post-sale management cost between $3 million and $4 million. In all, each year the taxpayers of this State pay $25 million to fund that failed privatisation. That is money that would be much better spent on priorities such as health, education and policing. We at least thought that we would get a $400 million upgrade of our rail system. However, when we got into government we found that this was just a mirage; there was absolutely no contractual obligation to spend that money. It was, as we said, a $1 billion Criddle fiddle. Withdrawal of Remark Mr R.F. JOHNSON: Point of order - Several members interjected. Ms A.J. MacTIERNAN: Mr Speaker, I withdraw. Mr R.F. JOHNSON: Mr Speaker - The SPEAKER: Sit down. Mr C.J. Barnett: Sorry? The SPEAKER: The minister withdrew the comment. Ms A.J. MacTIERNAN: I could continue with many, many stories of privatisation in the transport area - Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
I thank the member for the question and for his interest in matters regarding freight. He has been a great supporter of the investments that we have made in his electorate in ports, roads and rail. The Westrail privatisation was a real doozey. It will go down in history as one of the great debacles of privatisation. Members will recall that in December 2002 the rolling stock and the 49-year lease for the rail track of the freight network of Westrail was sold to an operator. At the time we were told that a $585 million up-front payment would be made and a commitment would be given to invest over $400 million. Statements were made that Western Australia would receive a net benefit of some $985 million. However, we had our doubts about that at the time and those doubts have since been confirmed by the Auditor General. It became clear that the Western Australian Government Railways financial statements reported that this sale netted a loss of $116 million - and that is just the freight business. Westrail was sold off when the Leader of the Opposition was in Government. He used to tell us what was going on with some of his colleagues and he told us that the former Government had to sell Westrail because of the burgeoning debt from the road-fest that was being undertaken by the previous National Party ministers. They said not to worry about the debt blowing out. They said that they would fix it and retire the debt by the sale of Westrail Freight. However, after the sale, the Government was left with a debt of $331 million on the freight system alone. The Westrail Freight debt used to be 100 per cent serviced by the revenue that the Government got from running the Westrail business. Through this great sale, we lost $116 million and were left with a debt of $331 million. I give the House some idea of the consequences of that for Western Australians today. In addition to that debt, there was a post-sale management cost between $3 million and $4 million. In all, each year the taxpayers of this State pay $25 million to fund that failed privatisation. That is money that would be much better spent on priorities such as health, education and policing. We at least thought that we would get a $400 million upgrade of our rail system. However, when we got into government we found that this was just a mirage; there was absolutely no contractual obligation to spend that money. It was, as we said, a $1 billion Criddle fiddle. Withdrawal of Remark Mr R.F. JOHNSON: Point of order - Several members interjected. Ms A.J. MacTIERNAN: Mr Speaker, I withdraw. Mr R.F. JOHNSON: Mr Speaker - The SPEAKER: Sit down. Mr C.J. Barnett: Sorry? The SPEAKER: The minister withdrew the comment. Ms A.J. MacTIERNAN: I could continue with many, many stories of privatisation in the transport area - Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
It became clear that the Western Australian Government Railways financial statements reported that this sale netted a loss of $116 million - and that is just the freight business. Westrail was sold off when the Leader of the Opposition was in Government. He used to tell us what was going on with some of his colleagues and he told us that the former Government had to sell Westrail because of the burgeoning debt from the road-fest that was being undertaken by the previous National Party ministers. They said not to worry about the debt blowing out. They said that they would fix it and retire the debt by the sale of Westrail Freight. However, after the sale, the Government was left with a debt of $331 million on the freight system alone. The Westrail Freight debt used to be 100 per cent serviced by the revenue that the Government got from running the Westrail business. Through this great sale, we lost $116 million and were left with a debt of $331 million. I give the House some idea of the consequences of that for Western Australians today. In addition to that debt, there was a post-sale management cost between $3 million and $4 million. In all, each year the taxpayers of this State pay $25 million to fund that failed privatisation. That is money that would be much better spent on priorities such as health, education and policing. We at least thought that we would get a $400 million upgrade of our rail system. However, when we got into government we found that this was just a mirage; there was absolutely no contractual obligation to spend that money. It was, as we said, a $1 billion Criddle fiddle. Withdrawal of Remark Mr R.F. JOHNSON: Point of order - Several members interjected. Ms A.J. MacTIERNAN: Mr Speaker, I withdraw. Mr R.F. JOHNSON: Mr Speaker - The SPEAKER: Sit down. Mr C.J. Barnett: Sorry? The SPEAKER: The minister withdrew the comment. Ms A.J. MacTIERNAN: I could continue with many, many stories of privatisation in the transport area - Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
Through this great sale, we lost $116 million and were left with a debt of $331 million. I give the House some idea of the consequences of that for Western Australians today. In addition to that debt, there was a post-sale management cost between $3 million and $4 million. In all, each year the taxpayers of this State pay $25 million to fund that failed privatisation. That is money that would be much better spent on priorities such as health, education and policing. We at least thought that we would get a $400 million upgrade of our rail system. However, when we got into government we found that this was just a mirage; there was absolutely no contractual obligation to spend that money. It was, as we said, a $1 billion Criddle fiddle. Withdrawal of Remark Mr R.F. JOHNSON: Point of order - Several members interjected. Ms A.J. MacTIERNAN: Mr Speaker, I withdraw. Mr R.F. JOHNSON: Mr Speaker - The SPEAKER: Sit down. Mr C.J. Barnett: Sorry? The SPEAKER: The minister withdrew the comment. Ms A.J. MacTIERNAN: I could continue with many, many stories of privatisation in the transport area - Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
Several members interjected. Ms A.J. MacTIERNAN: Mr Speaker, I withdraw. Mr R.F. JOHNSON: Mr Speaker - The SPEAKER: Sit down. Mr C.J. Barnett: Sorry? The SPEAKER: The minister withdrew the comment. Ms A.J. MacTIERNAN: I could continue with many, many stories of privatisation in the transport area - Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
Ms A.J. MacTIERNAN: Mr Speaker, I withdraw. Mr R.F. JOHNSON: Mr Speaker - The SPEAKER: Sit down. Mr C.J. Barnett: Sorry? The SPEAKER: The minister withdrew the comment. Ms A.J. MacTIERNAN: I could continue with many, many stories of privatisation in the transport area - Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
Mr R.F. JOHNSON: Mr Speaker - The SPEAKER: Sit down. Mr C.J. Barnett: Sorry? The SPEAKER: The minister withdrew the comment. Ms A.J. MacTIERNAN: I could continue with many, many stories of privatisation in the transport area - Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
The SPEAKER: Sit down. Mr C.J. Barnett: Sorry? The SPEAKER: The minister withdrew the comment. Ms A.J. MacTIERNAN: I could continue with many, many stories of privatisation in the transport area - Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
Mr C.J. Barnett: Sorry? The SPEAKER: The minister withdrew the comment. Ms A.J. MacTIERNAN: I could continue with many, many stories of privatisation in the transport area - Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
The SPEAKER: The minister withdrew the comment. Ms A.J. MacTIERNAN: I could continue with many, many stories of privatisation in the transport area - Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
Ms A.J. MacTIERNAN: I could continue with many, many stories of privatisation in the transport area - Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
Mr C.J. Barnett: Did you withdraw, minister? Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
Ms K. Hodson-Thomas: Minister, did you withdraw? The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
The SPEAKER: The minister clearly withdrew the comment. A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
A member interjected. The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
The SPEAKER: Members may wish to waste question time but I do not particularly want to do so. I ask the minister to withdraw the comment when everyone is quiet and can hear. Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
Ms A.J. MacTIERNAN: Thank you. I withdraw the comment. Questions without Notice Resumed Ms A.J. MacTIERNAN: There are many other very interesting aspects and examples of privatisation by stealth. We know of the very controversial proposal to create a private port and the contract that was let to a company related to BGC (Australia) Pty Ltd. The port proposal was developed without any economic analysis of the benefit to the State or the impact on the billions of dollars of government infrastructure in the Fremantle ports. I list a couple of the salient features to show the House how the taxpayers benefit from that privatisation. The contract has a term of 50 years with an option to extend it by 10 years. James Point Pty Ltd is obliged to pay only a nominal rent to the State for the entire term of its lease on key waterfront land. The commencement rent is set at $500 a year. The contract states that this nominal rent delivers a seabed lease of approximately 70 hectares in stage 1 of the port, and approximately 276 hectares in stage 2. That is given to it virtually free of charge. If that is not generous enough, James Point has also been given an option to purchase the freehold title of two reclamation areas for $10 each. Of course, the freehold titles of these areas would be worth considerably more. Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
Mr M.W. Trenorden: How many more pages have you got? Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
Ms A.J. MacTIERNAN: We have many more because the travesties continued. The previous Government privatised the delivery of the bus services. It was going to sell off our buses through the Matrix Finance Group deal, but we were able to stop it in the Legislative Council. As I say, there was a real failure of the privatisation agenda of the previous Government.
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