Utah Point and Fremantle Port are part of a raft of public assets flagged for sale by the government as a way to reduce debt which is forecast to reach A$39bn by 2018.
However, ABC News reports that Nationals leader Terry Redman said his party could not support the Liberals’ proposed legislation to sell such an important strategic and commercial asset.
“My team and I are strongly of the view that we cannot see a pathway, certainly between now and the election, and I suggest after that, that we can have a process…that supports the sale of what is such a significant and strategic asset for the state,” he said.
Mr Redman was critical of the Liberals handling of the issue, confirming the three Nationals cabinet ministers walked out of the cabinet discussion on the legislation. The remaining Liberal cabinet members voted to introduce the legislation to Parliament, forcing the Nationals’ hand.
Mr Redman said the Nationals’ concerns centre on the enabling legislation, which would allow the Government to reach agreement on a range of issues, including pricing and access arrangements, with any potential buyer.
“If we were to support that, we would have no visibility on any of the contractual arrangements that are so critical for the transparency that our constituency requires and needs for all the users of such a critical piece of infrastructure.”
In Parliament, the opposition leader Mark McGowan has lashed the Government over its internal divisions on the port sale issue.
“It is hopeless management of Western Australia. It is hopeless management of government. It is a dysfunction, divided, useless rabble,” Mr McGowan said.
Opposition state development spokesman Bill Johnston criticised Treasurer Mike Nahan, claiming the decision by the Nationals to abandon the sale left the Government’s budget strategy in tatters.
“His plan is to sell assets, and yet he can’t do it. He can’t sell Synergy, can’t sell Utah Point, it got referred to a committee yesterday as well, can’t sell Freo port,” he said.
In response Dr Nahan said private investment was needed to continue to grow the capacity and performance of Fremantle Port, and fund the future second outer harbour at Kwinana.
Premier Colin Barnett said he was “frustrated” by the Nationals’ opposition to the sale, but he remained determined to proceed with it.
“We will introduce the legislation into the Lower House and we will only progress it if we are confident we will get it through,” he said.
“Otherwise we will go to the election on the privatisation of Fremantle Port and the building of a purpose built, high quality live animal export facility,” he added.
Mr Barnett said he believed the Nationals leader had previously supported the sale of the port, but had been placed under pressure by some of his backbenchers, although this suggestion was rejected by Mr Redman.
Mr Redman also dismissed the suggestion that the Nationals had delivered a critical blow to the government’s privatisation and budget repair effort.
“It was always understood right from the outset that the Nationals would treat each issue on its merits,” he said.
“We’ve done that. And we’ve done it in good faith. We’ve had discussions with the Treasurer in particular about the pathway to how this might happen, in our view that’s been ignored,” he added.
Further complicating the sale, federal Treasurer Scott Morrison has tightened foreign investment rules, requiring the Foreign Investment Review Board to approve the sale of critical infrastructure belonging to the states and territories.
