❓ Question regarding the financial outcome of the Westrail Freight sale, with the Minister claiming a significant loss and ongoing liabilities resulting from the previous government's actions.
AnsweredQoN 806Legislative Assembly
Asked
20 March 2002
Member
QuestionView source ↗
I refer to the statement by the previous Minister for Transport, Hon Murray Criddle, at the time of the sale of Westrail Freight Pty Ltd that the sale represented a net benefit of $985 million to the State of Western Australia. Will the minister advise the House of the true financial outcome of the sale of Westrail Freight? Ms MacTIERNAN
AnswerView source ↗
The member and the Geraldton community generally have had an interest in the less than frank reporting of rail matters by the previous Minister for Transport. The Court Government promised to construct the southern transport corridor, but failed to make any provision in the budget for the rail component of that project. This Government has had negotiations with the member for Geraldton and has managed to solve that problem. Several members interjected. The SPEAKER: The member for South Perth will come to order! Ms MacTIERNAN: It is important to note what happened as a result of the coalition Government’s sale of the family silver. We were told that the State would receive a net benefit of $985 million from the sale. Of that, $400 million was committed to infrastructure investment. It has now been established that the contract contains no obligation to spend that money. Another $27.5 million was paid in stamp duty, which is not normally counted as a component of the sale price. Another $5 million has since had to be removed from the proceeds. In all, the State received $260 million for the sale of the freight business. As a result, the Auditor General has reported a loss of $116 million on the freight business alone. One of the justifications for this fire sale was that the then Government would use the proceeds to deal with Westrail’s debt. Far from dealing with that problem, the previous Government has left the State with a residual debt of $331 million. Prior to the sale, the State had an income stream that fully serviced the debt. It must now spend about $20 million per annum to service it. In addition, another $3 million to $4 million is required to monitor the sale arrangements. Overall, this fantastic little deal - Several members interjected. Ms MacTIERNAN: I understand why members of the National Party want to drown out the awful facts. Not only has the State sustained a $116 million loss, but it has also been left with an annual $25 million liability. That is an absolute disgrace!
Ms MacTIERNAN replied: The member and the Geraldton community generally have had an interest in the less than frank reporting of rail matters by the previous Minister for Transport. The Court Government promised to construct the southern transport corridor, but failed to make any provision in the budget for the rail component of that project. This Government has had negotiations with the member for Geraldton and has managed to solve that problem. Several members interjected. The SPEAKER: The member for South Perth will come to order! Ms MacTIERNAN: It is important to note what happened as a result of the coalition Government’s sale of the family silver. We were told that the State would receive a net benefit of $985 million from the sale. Of that, $400 million was committed to infrastructure investment. It has now been established that the contract contains no obligation to spend that money. Another $27.5 million was paid in stamp duty, which is not normally counted as a component of the sale price. Another $5 million has since had to be removed from the proceeds. In all, the State received $260 million for the sale of the freight business. As a result, the Auditor General has reported a loss of $116 million on the freight business alone. One of the justifications for this fire sale was that the then Government would use the proceeds to deal with Westrail’s debt. Far from dealing with that problem, the previous Government has left the State with a residual debt of $331 million. Prior to the sale, the State had an income stream that fully serviced the debt. It must now spend about $20 million per annum to service it. In addition, another $3 million to $4 million is required to monitor the sale arrangements. Overall, this fantastic little deal - Several members interjected. Ms MacTIERNAN: I understand why members of the National Party want to drown out the awful facts. Not only has the State sustained a $116 million loss, but it has also been left with an annual $25 million liability. That is an absolute disgrace!
The member and the Geraldton community generally have had an interest in the less than frank reporting of rail matters by the previous Minister for Transport. The Court Government promised to construct the southern transport corridor, but failed to make any provision in the budget for the rail component of that project. This Government has had negotiations with the member for Geraldton and has managed to solve that problem. Several members interjected. The SPEAKER: The member for South Perth will come to order! Ms MacTIERNAN: It is important to note what happened as a result of the coalition Government’s sale of the family silver. We were told that the State would receive a net benefit of $985 million from the sale. Of that, $400 million was committed to infrastructure investment. It has now been established that the contract contains no obligation to spend that money. Another $27.5 million was paid in stamp duty, which is not normally counted as a component of the sale price. Another $5 million has since had to be removed from the proceeds. In all, the State received $260 million for the sale of the freight business. As a result, the Auditor General has reported a loss of $116 million on the freight business alone. One of the justifications for this fire sale was that the then Government would use the proceeds to deal with Westrail’s debt. Far from dealing with that problem, the previous Government has left the State with a residual debt of $331 million. Prior to the sale, the State had an income stream that fully serviced the debt. It must now spend about $20 million per annum to service it. In addition, another $3 million to $4 million is required to monitor the sale arrangements. Overall, this fantastic little deal - Several members interjected. Ms MacTIERNAN: I understand why members of the National Party want to drown out the awful facts. Not only has the State sustained a $116 million loss, but it has also been left with an annual $25 million liability. That is an absolute disgrace!
Several members interjected. The SPEAKER: The member for South Perth will come to order! Ms MacTIERNAN: It is important to note what happened as a result of the coalition Government’s sale of the family silver. We were told that the State would receive a net benefit of $985 million from the sale. Of that, $400 million was committed to infrastructure investment. It has now been established that the contract contains no obligation to spend that money. Another $27.5 million was paid in stamp duty, which is not normally counted as a component of the sale price. Another $5 million has since had to be removed from the proceeds. In all, the State received $260 million for the sale of the freight business. As a result, the Auditor General has reported a loss of $116 million on the freight business alone. One of the justifications for this fire sale was that the then Government would use the proceeds to deal with Westrail’s debt. Far from dealing with that problem, the previous Government has left the State with a residual debt of $331 million. Prior to the sale, the State had an income stream that fully serviced the debt. It must now spend about $20 million per annum to service it. In addition, another $3 million to $4 million is required to monitor the sale arrangements. Overall, this fantastic little deal - Several members interjected. Ms MacTIERNAN: I understand why members of the National Party want to drown out the awful facts. Not only has the State sustained a $116 million loss, but it has also been left with an annual $25 million liability. That is an absolute disgrace!
The SPEAKER: The member for South Perth will come to order! Ms MacTIERNAN: It is important to note what happened as a result of the coalition Government’s sale of the family silver. We were told that the State would receive a net benefit of $985 million from the sale. Of that, $400 million was committed to infrastructure investment. It has now been established that the contract contains no obligation to spend that money. Another $27.5 million was paid in stamp duty, which is not normally counted as a component of the sale price. Another $5 million has since had to be removed from the proceeds. In all, the State received $260 million for the sale of the freight business. As a result, the Auditor General has reported a loss of $116 million on the freight business alone. One of the justifications for this fire sale was that the then Government would use the proceeds to deal with Westrail’s debt. Far from dealing with that problem, the previous Government has left the State with a residual debt of $331 million. Prior to the sale, the State had an income stream that fully serviced the debt. It must now spend about $20 million per annum to service it. In addition, another $3 million to $4 million is required to monitor the sale arrangements. Overall, this fantastic little deal - Several members interjected. Ms MacTIERNAN: I understand why members of the National Party want to drown out the awful facts. Not only has the State sustained a $116 million loss, but it has also been left with an annual $25 million liability. That is an absolute disgrace!
Ms MacTIERNAN: It is important to note what happened as a result of the coalition Government’s sale of the family silver. We were told that the State would receive a net benefit of $985 million from the sale. Of that, $400 million was committed to infrastructure investment. It has now been established that the contract contains no obligation to spend that money. Another $27.5 million was paid in stamp duty, which is not normally counted as a component of the sale price. Another $5 million has since had to be removed from the proceeds. In all, the State received $260 million for the sale of the freight business. As a result, the Auditor General has reported a loss of $116 million on the freight business alone. One of the justifications for this fire sale was that the then Government would use the proceeds to deal with Westrail’s debt. Far from dealing with that problem, the previous Government has left the State with a residual debt of $331 million. Prior to the sale, the State had an income stream that fully serviced the debt. It must now spend about $20 million per annum to service it. In addition, another $3 million to $4 million is required to monitor the sale arrangements. Overall, this fantastic little deal - Several members interjected. Ms MacTIERNAN: I understand why members of the National Party want to drown out the awful facts. Not only has the State sustained a $116 million loss, but it has also been left with an annual $25 million liability. That is an absolute disgrace!
One of the justifications for this fire sale was that the then Government would use the proceeds to deal with Westrail’s debt. Far from dealing with that problem, the previous Government has left the State with a residual debt of $331 million. Prior to the sale, the State had an income stream that fully serviced the debt. It must now spend about $20 million per annum to service it. In addition, another $3 million to $4 million is required to monitor the sale arrangements. Overall, this fantastic little deal - Several members interjected. Ms MacTIERNAN: I understand why members of the National Party want to drown out the awful facts. Not only has the State sustained a $116 million loss, but it has also been left with an annual $25 million liability. That is an absolute disgrace!
Several members interjected. Ms MacTIERNAN: I understand why members of the National Party want to drown out the awful facts. Not only has the State sustained a $116 million loss, but it has also been left with an annual $25 million liability. That is an absolute disgrace!
Ms MacTIERNAN: I understand why members of the National Party want to drown out the awful facts. Not only has the State sustained a $116 million loss, but it has also been left with an annual $25 million liability. That is an absolute disgrace!
Not only has the State sustained a $116 million loss, but it has also been left with an annual $25 million liability. That is an absolute disgrace!
Ms MacTIERNAN replied: The member and the Geraldton community generally have had an interest in the less than frank reporting of rail matters by the previous Minister for Transport. The Court Government promised to construct the southern transport corridor, but failed to make any provision in the budget for the rail component of that project. This Government has had negotiations with the member for Geraldton and has managed to solve that problem. Several members interjected. The SPEAKER: The member for South Perth will come to order! Ms MacTIERNAN: It is important to note what happened as a result of the coalition Government’s sale of the family silver. We were told that the State would receive a net benefit of $985 million from the sale. Of that, $400 million was committed to infrastructure investment. It has now been established that the contract contains no obligation to spend that money. Another $27.5 million was paid in stamp duty, which is not normally counted as a component of the sale price. Another $5 million has since had to be removed from the proceeds. In all, the State received $260 million for the sale of the freight business. As a result, the Auditor General has reported a loss of $116 million on the freight business alone. One of the justifications for this fire sale was that the then Government would use the proceeds to deal with Westrail’s debt. Far from dealing with that problem, the previous Government has left the State with a residual debt of $331 million. Prior to the sale, the State had an income stream that fully serviced the debt. It must now spend about $20 million per annum to service it. In addition, another $3 million to $4 million is required to monitor the sale arrangements. Overall, this fantastic little deal - Several members interjected. Ms MacTIERNAN: I understand why members of the National Party want to drown out the awful facts. Not only has the State sustained a $116 million loss, but it has also been left with an annual $25 million liability. That is an absolute disgrace!
The member and the Geraldton community generally have had an interest in the less than frank reporting of rail matters by the previous Minister for Transport. The Court Government promised to construct the southern transport corridor, but failed to make any provision in the budget for the rail component of that project. This Government has had negotiations with the member for Geraldton and has managed to solve that problem. Several members interjected. The SPEAKER: The member for South Perth will come to order! Ms MacTIERNAN: It is important to note what happened as a result of the coalition Government’s sale of the family silver. We were told that the State would receive a net benefit of $985 million from the sale. Of that, $400 million was committed to infrastructure investment. It has now been established that the contract contains no obligation to spend that money. Another $27.5 million was paid in stamp duty, which is not normally counted as a component of the sale price. Another $5 million has since had to be removed from the proceeds. In all, the State received $260 million for the sale of the freight business. As a result, the Auditor General has reported a loss of $116 million on the freight business alone. One of the justifications for this fire sale was that the then Government would use the proceeds to deal with Westrail’s debt. Far from dealing with that problem, the previous Government has left the State with a residual debt of $331 million. Prior to the sale, the State had an income stream that fully serviced the debt. It must now spend about $20 million per annum to service it. In addition, another $3 million to $4 million is required to monitor the sale arrangements. Overall, this fantastic little deal - Several members interjected. Ms MacTIERNAN: I understand why members of the National Party want to drown out the awful facts. Not only has the State sustained a $116 million loss, but it has also been left with an annual $25 million liability. That is an absolute disgrace!
Several members interjected. The SPEAKER: The member for South Perth will come to order! Ms MacTIERNAN: It is important to note what happened as a result of the coalition Government’s sale of the family silver. We were told that the State would receive a net benefit of $985 million from the sale. Of that, $400 million was committed to infrastructure investment. It has now been established that the contract contains no obligation to spend that money. Another $27.5 million was paid in stamp duty, which is not normally counted as a component of the sale price. Another $5 million has since had to be removed from the proceeds. In all, the State received $260 million for the sale of the freight business. As a result, the Auditor General has reported a loss of $116 million on the freight business alone. One of the justifications for this fire sale was that the then Government would use the proceeds to deal with Westrail’s debt. Far from dealing with that problem, the previous Government has left the State with a residual debt of $331 million. Prior to the sale, the State had an income stream that fully serviced the debt. It must now spend about $20 million per annum to service it. In addition, another $3 million to $4 million is required to monitor the sale arrangements. Overall, this fantastic little deal - Several members interjected. Ms MacTIERNAN: I understand why members of the National Party want to drown out the awful facts. Not only has the State sustained a $116 million loss, but it has also been left with an annual $25 million liability. That is an absolute disgrace!
The SPEAKER: The member for South Perth will come to order! Ms MacTIERNAN: It is important to note what happened as a result of the coalition Government’s sale of the family silver. We were told that the State would receive a net benefit of $985 million from the sale. Of that, $400 million was committed to infrastructure investment. It has now been established that the contract contains no obligation to spend that money. Another $27.5 million was paid in stamp duty, which is not normally counted as a component of the sale price. Another $5 million has since had to be removed from the proceeds. In all, the State received $260 million for the sale of the freight business. As a result, the Auditor General has reported a loss of $116 million on the freight business alone. One of the justifications for this fire sale was that the then Government would use the proceeds to deal with Westrail’s debt. Far from dealing with that problem, the previous Government has left the State with a residual debt of $331 million. Prior to the sale, the State had an income stream that fully serviced the debt. It must now spend about $20 million per annum to service it. In addition, another $3 million to $4 million is required to monitor the sale arrangements. Overall, this fantastic little deal - Several members interjected. Ms MacTIERNAN: I understand why members of the National Party want to drown out the awful facts. Not only has the State sustained a $116 million loss, but it has also been left with an annual $25 million liability. That is an absolute disgrace!
Ms MacTIERNAN: It is important to note what happened as a result of the coalition Government’s sale of the family silver. We were told that the State would receive a net benefit of $985 million from the sale. Of that, $400 million was committed to infrastructure investment. It has now been established that the contract contains no obligation to spend that money. Another $27.5 million was paid in stamp duty, which is not normally counted as a component of the sale price. Another $5 million has since had to be removed from the proceeds. In all, the State received $260 million for the sale of the freight business. As a result, the Auditor General has reported a loss of $116 million on the freight business alone. One of the justifications for this fire sale was that the then Government would use the proceeds to deal with Westrail’s debt. Far from dealing with that problem, the previous Government has left the State with a residual debt of $331 million. Prior to the sale, the State had an income stream that fully serviced the debt. It must now spend about $20 million per annum to service it. In addition, another $3 million to $4 million is required to monitor the sale arrangements. Overall, this fantastic little deal - Several members interjected. Ms MacTIERNAN: I understand why members of the National Party want to drown out the awful facts. Not only has the State sustained a $116 million loss, but it has also been left with an annual $25 million liability. That is an absolute disgrace!
One of the justifications for this fire sale was that the then Government would use the proceeds to deal with Westrail’s debt. Far from dealing with that problem, the previous Government has left the State with a residual debt of $331 million. Prior to the sale, the State had an income stream that fully serviced the debt. It must now spend about $20 million per annum to service it. In addition, another $3 million to $4 million is required to monitor the sale arrangements. Overall, this fantastic little deal - Several members interjected. Ms MacTIERNAN: I understand why members of the National Party want to drown out the awful facts. Not only has the State sustained a $116 million loss, but it has also been left with an annual $25 million liability. That is an absolute disgrace!
Several members interjected. Ms MacTIERNAN: I understand why members of the National Party want to drown out the awful facts. Not only has the State sustained a $116 million loss, but it has also been left with an annual $25 million liability. That is an absolute disgrace!
Ms MacTIERNAN: I understand why members of the National Party want to drown out the awful facts. Not only has the State sustained a $116 million loss, but it has also been left with an annual $25 million liability. That is an absolute disgrace!
Not only has the State sustained a $116 million loss, but it has also been left with an annual $25 million liability. That is an absolute disgrace!
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