❓ The Premier addresses concerns regarding the planned sale of Utah Point terminal, potential fee reductions, and guarantees related to fee scales for Utah Point and Kwinana Bulk Terminal, focusing on supporting smaller iron ore producers.
AnsweredQoN 307Legislative Assembly
QuestionView source ↗
ASSET SALES PROGRAM — UTAH POINT
307. Mr M. McGOWAN to the
Premier:
I refer to the planned sale of the Utah Point terminal as
part of the Premier's asset sales program, and potential reductions in
user charges for that terminal.
(1) Will the
Premier accept the recommendation to reduce the fees at Utah Point, and will
that reduce the sale value?
(2) Will the
sale of Utah Point and Kwinana Bulk Terminal be subject to guarantees about the
fee scales?
(3) Will the
Premier still proceed with these two sales; and, if so, when?
307. Mr M. McGOWAN to the
Premier:
I refer to the planned sale of the Utah Point terminal as
part of the Premier's asset sales program, and potential reductions in
user charges for that terminal.
(1) Will the
Premier accept the recommendation to reduce the fees at Utah Point, and will
that reduce the sale value?
(2) Will the
sale of Utah Point and Kwinana Bulk Terminal be subject to guarantees about the
fee scales?
(3) Will the
Premier still proceed with these two sales; and, if so, when?
AnswerView source ↗
(1)–(3) Given
the price of iron ore and some of the problems that particularly the smaller
iron ore producers have been experiencing, the state has done all that it can
to assist those companies. We want them to survive and we want them to continue
to employ Western Australians. The Minister for Transport has been dealing with
the issue of fees at the port; I think that is close to finalisation and will
provide some relief. Similarly, the Minister for Mines and Petroleum has been
involved in discussions about royalty deferment and the like. There are also
some other transport issues, which, although not relating to money, will allow
the companies to increase their efficiency of operation. I think that is what a
government should do. If Utah Point is sold—I hope it will be—there
may be, as part of that sales package, some regulation of charges because it
would have a market position, but that is some of the work that is still being
undertaken. What I have learnt from experience is that if we privatise
something, we may well sell it in a sense but we still ultimately bear
responsibility. In privatisation, generally, a regulatory regime comes in place
if there is a monopoly power.
the price of iron ore and some of the problems that particularly the smaller
iron ore producers have been experiencing, the state has done all that it can
to assist those companies. We want them to survive and we want them to continue
to employ Western Australians. The Minister for Transport has been dealing with
the issue of fees at the port; I think that is close to finalisation and will
provide some relief. Similarly, the Minister for Mines and Petroleum has been
involved in discussions about royalty deferment and the like. There are also
some other transport issues, which, although not relating to money, will allow
the companies to increase their efficiency of operation. I think that is what a
government should do. If Utah Point is sold—I hope it will be—there
may be, as part of that sales package, some regulation of charges because it
would have a market position, but that is some of the work that is still being
undertaken. What I have learnt from experience is that if we privatise
something, we may well sell it in a sense but we still ultimately bear
responsibility. In privatisation, generally, a regulatory regime comes in place
if there is a monopoly power.
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