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Category: Business, Economics and Finance

WA Premier defends pursuit of Bell Group cash

Tuesday, 17 May 2016 14:52:36 | Courtney Bembridge

Alan Bond's Bell Group collapse cost taxpayers hundreds of millions of dollars. (ABC News)

WA Premier Colin Barnett has defended his Government's pursuit of a $1.75 billion carve up of the collapsed Bell Group, as he warned the case was a "carcass" speculators and lawyers would feed on for another decade.

The collapse of Alan Bond's Bell Group in the 1990s sparked a prolonged legal battle as creditors including state and federal governments tried to claim their share.

When the case was finally won, the State Government tried to gain control over the carve up of the $1.75 billion settlement.

WA brought in laws last year to that effect, hoping to ensure taxpayers got their fair share.

But the laws were challenged by other creditors and on Monday the High Court ruled them invalid because they contradicted federal tax laws.

It was a disappointing outcome for the State Government, which has spent around $250 million pursuing the case over two decades.

Mr Barnett said there was always a chance the laws would not survive a High Court challenge.

"It was always a long shot, but bear in mind this litigation has gone on for 20 years. Speculators and lawyers have lived off this," he said.

"That money belongs to the people of Western Australia, well most of it does.

"I don't apologise for having a go at trying to retrieve that money that was lost by a previous Labor government."

The Premier said he was disappointed the Commonwealth was not more supportive of the state's bid to end its longest running legal dispute.

"So the prognosis is it will go on for another 10 years, the speculators and the lawyers will continue to feed on what's left of that carcass and there will probably be little or nothing left for the people of Western Australia," he said.

AustraliaPlus


 

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