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Category: Electricity Energy and Utilities / Government and Politics

Labor vows never to sell-off Western Power

Monday, 17 Oct 2016 13:12:00 | Andrew O'Connor

Mark McGowan says Western Power is a critical public asset. (ABC News: Andrew O'Connor)

WA Labor is intensifying its campaign against the privatisation of Western Power, launching a public petition calling on the Barnett Government to abandon the plan.

Labor leader Mark McGowan was joined by Labor candidates contesting seats at the March election, as they sought public support for the campaign in the centre of Perth.

"We do not want Western Power privatised. We will stand against the privatisation of Western Power and we will make this a major issue in the lead up to the next election," he said.

Western Power is the latest in a string of public assets targeted for sale by the financially-pressed Barnett Government.

After delivering record debt and deficits in the May state budget, the Government wants to use asset sales to curb spiralling debt, and fund capital works.

Sale would be 'serious mistake'

But WA Labor argues the Western Power is a critical public asset and a source of revenue for the cash-strapped Government, and believes selling it would be a serious mistake.

Mr McGowan said the utility, which owns the poles and wires which distribute electricity across the state's south-west, is efficient, profitable and returns a dividend to the state.

"If you sell off Western Power, you will lose that ongoing dividend, that ongoing revenue to the people of the state," he said.

"I think that is a major point. If you lose $550 million-plus in revenue, in dividends and tax-equivalent payments to the people of the state, that money has to be made up somewhere."

'Recycling assets' beneficial, says Treasurer

With Western Power's debt about $8 billion, WA Treasurer Mike Nahan argues privatisation of the utility would punch a big whole in the Government's overall debt, projected to be $33.8 billion by the end of the financial year.

Dr Nahan said the Government would be mindful of public opinion on the issue.

"We represent the public and we have gone about this very cautiously," he said.

But he said both Liberal and Labor state governments on the east coast demonstrated the value of recycling public assets which not longer needed to be in government ownership.

"The fastest growing states right now are New South Wales and Victoria, based in large part, on construction, funded in large part by the recycling of assets that they no longer need and investing in assets they do need," he said.

Mr McGowan and Labor candidates sought signatures from shoppers and lunchtime diners in Forrest Chase, in the next step what would be a five-month campaign against privatisation.

"We'll be aiming for many thousands of signatures and our candidates and members will be out there campaigning on this issue in the lead up to the next election," he said.

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