Muja not for sale yet: Treasurer
WA Treasurer Mike Nahan says no decision will be made on the sale of the Collie Muja AB Power Station in this year’s budget.
However, Mr Nahan said the Government would stabilise the project before it would consider selling the public asset.
But Collie MLA Mick Murray said the sale could lead to job losses, higher energy prices and would be a poor return on the State’s investment.
There has been speculation the power plant could be sold as the Government prepares to deliver a tight budget next month.
The power station has been a troubled investment for the State Government, with a blow-out from the original $150 million upgrade cost in 2009.
A report from auditors KPMG found it had cost about $308 million to upgrade and recommission the power plant.
This is about $27 million less than Mr Nahan predicted the upgrade would cost during last year’s Budget.
“Labor has bagged this refurbishment project from the start, ” Mr Nahan said.
“They believe we should have stopped it last year and as the recent independent KPMG report shows, if we had followed that course of action, it would have been the wrong decision.
“The refurbishment project came in below budget by $27 million and on time, in fact a month early. The refurbishment of Muja AB, on the best estimates done on a conservative basis from an independent authority, will pay for itself.
“Muja AB is now operating successfully. We will bed the project down before we even consider selling any part of it and demonstrate to any prospective buyers that the plant is working, and working well.”
Mr Murray is opposed to selling Muja and said Labor would fight against any move to privatise health, education or energy assets.
Mr Murray said he did not understand selling assets to cut costs.
