❓ McGowan questions the government's ability to achieve fair value in asset sales given a recent failed computer deal and a depressed market. Barnett defends the government's record on previous privatisations and expresses confidence in future sales.
AnsweredQoN 40Legislative Assembly
QuestionView source ↗
ASSET SALE
PROGRAM
40. Mr M. McGOWAN to the
Premier:
I have a supplementary question. As the government has just
blown $80 million on another computer deal that went wrong, what hope does it
have of getting fair value in a multibillion-dollar sale of state assets in a very
depressed market?
PROGRAM
40. Mr M. McGOWAN to the
Premier:
I have a supplementary question. As the government has just
blown $80 million on another computer deal that went wrong, what hope does it
have of getting fair value in a multibillion-dollar sale of state assets in a very
depressed market?
AnswerView source ↗
I do have a little bit of personal experience. The Leader of
the Opposition will not agree because he has a philosophy against
privatisation, but as the energy minister way back in the 1990s I had
responsibility for the sale of the Dampier to Bunbury natural gas pipeline.
From memory, it sold for $2 407 million —
Several members interjected.
The SPEAKER :
Member for Albany, I call you to order for the second time. You two over here,
the member for South Perth and the member for Alfred Cove, I do not want to
hear from you. Thank you.
Mr C.J. BARNETT :
The sale of the Dampier to Bunbury pipeline for $2.4 billion back in the late
1990s was, I think, pretty good value for money; in fact, it was probably $600 million
more than it was really worth, so not a bad result. The other privatisation I was
involved with was Alinta, in which more than 100 000 Western Australians bought
shares. That was pretty popular, and there was about $1 billion for that sale,
so I think there is a bit of credibility here. The sale of the Perth Market
Authority I think was a good result, handled by the Treasurer and the Minister
for Agriculture and Food. It was a good result not only in terms of return to
the state, but also in terms of developing the fruit and vegetable industry and
exports. New capital will go into that. Utah Point is the next one along, and I
think we will get good value for that, too.
Mr M. McGowan : At
one-quarter of the value. Ask the market.
Mr C.J. BARNETT :
Let us wait and see. We will not sell any asset unless we get what we consider
to be a good price for it.
Mr F.M. Logan :
What about Muja AB?
Mr C.J. BARNETT :
Well, you want to keep the coal industry, don't you? Your friend next
to you wants to keep the coal industry.
The SPEAKER :
Member for Cockburn!
Mr C.J. BARNETT :
So, Mr Speaker —
Mr M.P. Murray :
The government won't get anything for it.
Mr C.J. BARNETT :
Well, you say that. If you want to talk down the coal industry in Collie, go
for it. Your biggest problem, my friend —
Mr M.P. Murray interjected.
Mr C.J. BARNETT :
No, I am the last person to build a government coal power station in this
state. I did, near Collie. You took 10 years and you could not build it! You
had Bob Hawke and Geoff Gallop saying you were going to build it, and you never
did!
Several members interjected.
The SPEAKER : Thank
you! Through the Chair, please.
Mr
C.J. BARNETT : Your biggest problem —
Mr
M.P. Murray : You built a little box!
Mr
C.J. BARNETT : Well, it is the most efficient coal power station in the
network. Member for Collie, your biggest problem —
Several members interjected.
The
SPEAKER : Members! Through the Chair!
Mr
C.J. BARNETT : Member for Collie, your biggest problem in protecting the
coal industry —
Mr
M.P. Murray : Is you!
Mr
C.J. BARNETT : No, it is not. It is the member for Gosnells.
Several members interjected.
The
SPEAKER : Thank you! Through the Chair, a quick answer, please, Premier.
Finished? Thank you.
the Opposition will not agree because he has a philosophy against
privatisation, but as the energy minister way back in the 1990s I had
responsibility for the sale of the Dampier to Bunbury natural gas pipeline.
From memory, it sold for $2 407 million —
Several members interjected.
The SPEAKER :
Member for Albany, I call you to order for the second time. You two over here,
the member for South Perth and the member for Alfred Cove, I do not want to
hear from you. Thank you.
Mr C.J. BARNETT :
The sale of the Dampier to Bunbury pipeline for $2.4 billion back in the late
1990s was, I think, pretty good value for money; in fact, it was probably $600 million
more than it was really worth, so not a bad result. The other privatisation I was
involved with was Alinta, in which more than 100 000 Western Australians bought
shares. That was pretty popular, and there was about $1 billion for that sale,
so I think there is a bit of credibility here. The sale of the Perth Market
Authority I think was a good result, handled by the Treasurer and the Minister
for Agriculture and Food. It was a good result not only in terms of return to
the state, but also in terms of developing the fruit and vegetable industry and
exports. New capital will go into that. Utah Point is the next one along, and I
think we will get good value for that, too.
Mr M. McGowan : At
one-quarter of the value. Ask the market.
Mr C.J. BARNETT :
Let us wait and see. We will not sell any asset unless we get what we consider
to be a good price for it.
Mr F.M. Logan :
What about Muja AB?
Mr C.J. BARNETT :
Well, you want to keep the coal industry, don't you? Your friend next
to you wants to keep the coal industry.
The SPEAKER :
Member for Cockburn!
Mr C.J. BARNETT :
So, Mr Speaker —
Mr M.P. Murray :
The government won't get anything for it.
Mr C.J. BARNETT :
Well, you say that. If you want to talk down the coal industry in Collie, go
for it. Your biggest problem, my friend —
Mr M.P. Murray interjected.
Mr C.J. BARNETT :
No, I am the last person to build a government coal power station in this
state. I did, near Collie. You took 10 years and you could not build it! You
had Bob Hawke and Geoff Gallop saying you were going to build it, and you never
did!
Several members interjected.
The SPEAKER : Thank
you! Through the Chair, please.
Mr
C.J. BARNETT : Your biggest problem —
Mr
M.P. Murray : You built a little box!
Mr
C.J. BARNETT : Well, it is the most efficient coal power station in the
network. Member for Collie, your biggest problem —
Several members interjected.
The
SPEAKER : Members! Through the Chair!
Mr
C.J. BARNETT : Member for Collie, your biggest problem in protecting the
coal industry —
Mr
M.P. Murray : Is you!
Mr
C.J. BARNETT : No, it is not. It is the member for Gosnells.
Several members interjected.
The
SPEAKER : Thank you! Through the Chair, a quick answer, please, Premier.
Finished? Thank you.
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