Port Hedland’s Utah Point bulk handling port and the Kwinana bulk terminal port are up for sale as part of the Western Australian government’s drive to reduce debt and regain its AAA credit rating.
The Utah Point facility at Port Hedland is the main port for exporting iron ore from the Pilbara to overseas markets while Kwinana, south of Perth, handles coal, iron-ore, LPG, and other bulk products.
It’s believed the ports will be sold as a long term lease.
The move to sell off the ports, along with other key state assets, comes after Standard & Poor’s announced it was reconsidering Western Australia’s AAA credit rating.
According to WA Today, “Net debt is forecast to reach $29 billion in 2018, up from $22 billion in 2014.”
Mr Barnett blamed his state’s precarious financial position on the federal government’s refusal to redress the inbalance of GST revenue distribution to the west.
Speaking to WA Today, Mr Barnett said, “If we can’t get reform of the GST and we go from 38 cents in the dollar returned to West Australians down to 11 cents or somewhere there I think it would be impossible to run surpluses in that environment,”
Opposition spokesman on Treasury Ben Wyatt described the asset sales as the “budgetary equivalent of taking the TV down to Cash Converters to make payment on the mortgage”.
“He’s rushing off to Cash Converters, TV under his arm, so he can make the next monthly instalment on his mortgage, that is not a financial plan, that won’t restore the AAA credit rating.”
Source WA Today: http://www.watoday.com.au/wa-news/wa-government-hopes-for-2-billion-a-year-from-asset-sales-20140828-109ksa.html#ixzz3BjYkWbLS
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