Western Power Sale Dominates Headlines

Last week’s news cycle was dominated by the Government’s announcement that they will push forward with the proposed partial sale of Western Power as part of its asset re-cycling program.

The Property Council welcomed the news and the Government’s commitment to put $3 billion of the revenue raised to create an infrastructure fund. This fund will be used to invest in priority areas such as transport infrastructure.

The announcement has created the first clear dividing line between the two major parties ahead of the March 2017 election with Labor coming out strongly against the proposed float. Labor believe that the public utility should remain in public hands as it provides an essential service.  

We support the partial sale as WA’s tight budget situation means that there is a limited capacity to invest in infrastructure. A strategic asset-recycling program, linked to funding infrastructure, is an excellent alternative funding approach which has been utilised successfully in other states

By investing revenue into public infrastructure like rail and road projects to reduce congestion, the Government will not only create much needed jobs, but also boost economic growth by enabling more productive infrastructure. 

You can read our statement on the Government’s announcement here.