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Category: State Parliament / Electricity Energy and Utilities

Western Power sale still viable, WA Treasurer says

Wednesday, 17 Aug 2016 20:50:06 | Jacob Kagi

WA Treasurer Mike Nahan denies a foreign ownership restriction will affect the sale. (ABC News: Andrew O'Connor)

Australian investors would be willing to pay a high enough price to justify selling Western Power, amid concerns over foreign ownership of state energy infrastructure, the WA Treasurer says.

Mike Nahan's comments come after his federal counterpart Scott Morrison blocked the sale of New South Wales energy provider Ausgrid to Chinese and Hong Kong bidders, citing national security concerns.

That decision comes as the WA Government mulls selling Western Power to fund new infrastructure and pay down debt, a move that has been regularly advocated by Dr Nahan.

But Premier Colin Barnett has said the utility will only be sold if there is strong public support, while the Nationals have also expressed reservations, wanting all the proceeds from any sale to go towards job-creating infrastructure projects.

Mr Morrison's Ausgrid decision threw another spanner in the works for the Government, but Dr Nahan denied any restriction on foreign ownership would slash the possible sale price.

"I think Australian super funds have shown in the past they are willing and ready to pay top dollar for good assets like Western Power," Dr Nahan told Parliament.

"A whole range of private firms have been involved in all the transactions that have taken place.

"We will accept whatever the FIRB (Foreign Investment Review Board) and Scott Morrison recommend. We will accept whatever it is and whatever the cost and if it diminishes the value significantly then we won't sell it."

But Dr Nahan insisted the Ausgrid decision did not necessarily mean all foreign-owned bidders would be blocked, saying it related only to the specific entities involved.

Ausgrid decision reduces Western Power value: Labor

Labor's energy spokesman Bill Johnston said he expected the Ausgrid decision would have a significant impact on Western Power's potential sale value.

"This is a severe problem for the current government," Mr Johnston said.

"It has reduced the value of the potential privatisation, making it even less worthwhile and it is time the Liberal Party acknowledged this is not in the interests of West Australians."

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