State plans to sell Alinta Gas next year are on track with sale legislation passed

16/12/99
The Western Australian Government's plans to sell the State's gas utility AlintaGas next year are on track with the Government's sale legislation approved by State Parliament last night.
Energy Minister Colin Barnett said he was pleased the legislation had a clean and unamended passage through Parliament with the support of Independent MLC Mark Nevill.
As announced by the Minister earlier this year, the structure of the AlintaGas sale will be a Cornerstone Initial Public Offering (IPO).
Features of the sale include:
+ 45 per cent of AlintaGas to be sold by competitive tender to a trade purchaser, followed by a public float for the remaining 55 per cent ownership interest;
+ at least 75 per cent of shares available in the public float to be allocated to WA retail investors and WA institutional investors;
+ no increase in gas tariffs for 1999-00 or 2000-01, any increase capped to no more than CPI in 2001-02 and any increases to standard tariffs to residential users capped at no more than CPI plus two per cent from 2002/03 onwards; and -
+ the privatised AlintaGas will be required to maintain its headquarters in Western Australia.
Following a competitive bidding process to determine a cornerstone shareholder, a prospectus will be available for the public float.
Mr Barnett said he expected the cornerstone shareholder and share float would be concluded in August or September, 2000.
The intention to sell AlintaGas was announced by the State Government nearly 12 months ago.
Since that time, a sale steering committee has investigated the appropriate structure, method and timing of the sale to achieve an optimum price for AlintaGas while protecting the interests of gas customers and the State.
"The Government and the sale steering committee have worked many issues through thoroughly and properly over the past 12 months, including the safety and reliability of gas supply, gas tariffs for small business and residential customers, and the interests of AlintaGas employees," Mr Barnett said.
"The passage of the sale legislation last night is the successful conclusion to a lot of hard work and effort over the past year that will ensure the AlintaGas sale is a success for WA."
Mr Barnett acknowledged Mr Nevill's willingness to discuss details of the sale, particularly aspects relating to the Government's deregulation timetable for the gas industry, conditions for AlintaGas employees, and competition aspects.
As a result, the Government will accelerate the widening of the Dampier to Bunbury Natural Gas Pipeline corridor, and the development of an infrastructure corridor from the Oakajee Industrial Estate to the eastern Goldfields.
Mr Barnett will also recommend to Premier Richard Court that from the proceeds of the AlintaGas sale funds should be put towards other projects promoted by
Mr Nevill, including the purchase of equipment for early cancer detection and heritage projects on the Goldfields.
The Minister said the sale of AlintaGas was an essential step for the complete deregulation of the WA gas market.
"All of the necessary reforms in the State's gas sector will culminate by July 1, 2002 in a fully open market," he said.
"By mid-2002, the gas industry would have gone from being highly regulated and Government-dominated in the early 1990s to being fully deregulated and privatised.
"With such extensive reforms, there is no reason why the State Government needs to retain ownership of a gas distribution and trading business."
Media contact: Justine Whittome, (08) 9222 9699