The WA Treasurer responds to a question regarding the potential privatisation of Western Power, reaffirming the government's commitment to retaining it in public hands, citing its essential service and significant asset value. The Treasurer acknowledges potential financial gains from privatisation but emphasizes the benefits of public ownership.

AnsweredQoN 299Legislative Assembly
Asked
23 April 2015
Portfolio
Treasurer

QuestionView source ↗

WESTERN
POWER — PRIVATISATION
299. Mr W.J. JOHNSTON to the
Treasurer:
I note that the federal Minister for Finance, WA Senator Hon
Mathias Cormann, has called for the WA government to sell Western Power, and I
note the Treasurer's resolute policy not to privatise Western Power.
(1) Can the
Treasurer detail to the house and to all Western Australians the advantages of
retaining Western Power in public hands?
(2) Can the
Treasurer also explain the severe negative impacts on Western Australians that
would occur if Western Power were to be privatised?

AnswerView source ↗

(1)–(2)
I assume that Mathias Cormann, the federal finance minister, has said that.
Others have said that. There is a great debate around Australia about selling
the poles and wires. It is a central issue in the Queensland election debate
and it is a central issue in New South Wales. We have made it clear that we are
not in the process of selling Western Power, confirming all that the member has
said. There are a couple of issues. Why hold onto it? It is a very essential
service. Western Power is a regulated monopoly providing transmission and
distribution services to the south west integrated system. It is by far the
state's largest business—at least in terms of consumption of
government funds. It is maybe the first or second in terms of asset values to
the Water Corporation. It is a very important issue. It is a major asset. I
cannot tell the member its asset value, but it would be in the vicinity of —
Mr M. McGowan : That's not the
question.
Dr M.D. NAHAN : I do not care what the
Leader of the Opposition says. Did he ask the question?
Several
members interjected.
The SPEAKER : Members!
Dr M.D. NAHAN : We talked about
languages.
Western Power's asset value is in the vicinity of $10
billion. We have decided not to sell it, and that is a decision for government.
If you sold it, you would get some money for it. If sold to the private sector,
it would also have to be regulated. The benefit is that we have an essential
asset that provides an important service. If we sold it, we would get some
money for it.

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