2016-11-30
The WA Greens said investors would expect to turn a profit, which would drive up power prices and cost WA jobs after the Barnett Government today conceded its blatant failure to manage the State’s rising debt by announcing the partial sale of Western Power today.
Greens candidate Diane Evers said investors don’t take on private ownership without serious expectation of profit.
“Shareholders are entitled to demand profitability at the expense of good service and safety. And the public will pay for this," she said. “The role of Western Power is to maintain our electricity infrastructure and distribute electricity to businesses and people. It is not to turn a profit for investors. “Any requirement for profit would either see prices rise or service and safety reduce. Either way, Western Australians lose. “Selling public utilities to make up for past poor performance is a shocking management plan. “Over the past eight years, the Barnett government has put Western Australia in a dreadful debt hole, and to try and dig their way out of it by selling state owned assets is blatant acknowledgement of their failure. “If the new majority shareholders pursue profit over people, we will see the infrastructure deteriorate further as we did with the sale of the freight rail lines in the South West. “It is unfortunate that the public are being deceived in saying there will be no job losses. Job numbers will fall with the drive to turn a profit, and a privately owned business will have no social obligation to maintain current staff or even to employ Western Australians. “It is fallacious to suggest that the utility will be purchased by super funds and therefore held in Australian hands. Once listed on the market, it could be purchased by anyone including overseas interests. Ms Evers said the proposal was flawed as it expected $11 billion for 51 per cent of an organisation valued at between $12 billion and $16 billion in a recent report prepared by PWC and released by the WA Chamber of Commerce and Industry. “Colin Barnett is misleading the public, in proposing that selling assets is the way to get out of debt, when proper financial management in the first place would have kept us from this position,” she said. Media contact: 0439 439 233 or Diane 0458 488 504
“Shareholders are entitled to demand profitability at the expense of good service and safety. And the public will pay for this," she said. “The role of Western Power is to maintain our electricity infrastructure and distribute electricity to businesses and people. It is not to turn a profit for investors. “Any requirement for profit would either see prices rise or service and safety reduce. Either way, Western Australians lose. “Selling public utilities to make up for past poor performance is a shocking management plan. “Over the past eight years, the Barnett government has put Western Australia in a dreadful debt hole, and to try and dig their way out of it by selling state owned assets is blatant acknowledgement of their failure. “If the new majority shareholders pursue profit over people, we will see the infrastructure deteriorate further as we did with the sale of the freight rail lines in the South West. “It is unfortunate that the public are being deceived in saying there will be no job losses. Job numbers will fall with the drive to turn a profit, and a privately owned business will have no social obligation to maintain current staff or even to employ Western Australians. “It is fallacious to suggest that the utility will be purchased by super funds and therefore held in Australian hands. Once listed on the market, it could be purchased by anyone including overseas interests. Ms Evers said the proposal was flawed as it expected $11 billion for 51 per cent of an organisation valued at between $12 billion and $16 billion in a recent report prepared by PWC and released by the WA Chamber of Commerce and Industry. “Colin Barnett is misleading the public, in proposing that selling assets is the way to get out of debt, when proper financial management in the first place would have kept us from this position,” she said. Media contact: 0439 439 233 or Diane 0458 488 504