Richard Court

Richard Court

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    AlintaGas sale proceeds to help build stronger communities: Premier

    18/10/2000 10:18 AM
     
    18/10/00

    Premier Richard Court today announced a balanced and responsible plan for the use of the proceeds from the sale of AlintaGas which will further strengthen the community of Western Australia.

    Mr Court said the principles underpinning the distribution of the sale proceeds were to retire a significant component of debt to lower the Government’s interest burden, and to build significant new capital assets for current and future generations to enjoy.

    “We will apply that responsible policy to benefit all Western Australians and to help build stronger communities around the State,” Mr Court said.
    APPLICATION OF SALE PROCEEDS
    GROSS PROCEEDS$971.4 million
    Less
    Costs of sale (this includes employee transfer expenses, due diligence, advisers’ fees, costs of Initial Public Offering – IPO, refinancing of $450 million of debt and buyout of a gas contract to maximise sale value)$35.9 million
    Stamp duties$43 million
    Warranty provision$10 million
    Superannuation provision$14 million
    Total of costs, provisions and stamp duty$102.9 million$868.5 million
    Retirement of
    AlintaGas debt$320 million
    General Government debt$124.1 million
    Total debt retirement$444.1 million$424.4 million
    Capital expenditure
    Public transport$310 million
    Education $40 million
    Health$40 million
    Environment$20 million
    Communications technology$7 million
    Golden Pipelines Project$6.9 million
    Australian Miners’ and Prospectors’ Hall of Fame$0.5 million
    Total capital expenditure$424.4 million
    Mr Court said that in total, $444.1 million of the net proceeds would be used to retire debt:
    • $320 million to retire AlintaGas’ debt in full; and -
    • $124.1 million to retire general Government sector debt.

    “In eight years of Government, we have reduced the State’s debt from 20 per cent to 8 per cent of gross domestic product,” he said.

    “This has given us the flexibility to build significant new community assets.”

    After the retirement of debt, the remaining $424.4 million in proceeds will be allocated as follows:
    • $310 million to contribute to the funding of the urban rail extension project and to improve rail security systems;
    • $40 million for education initiatives in Government schools around the State;
    • $40 million for health projects, including new equipment, around the State;
    • $20 million for an environmental project associated with salinity;
    • $7 million for a telecommunications initiative in the South-West;
    • $6.9 million for the Golden Pipelines Project; and -
    • $500,000 to the Australian Miners’ and Prospectors’ Hall of Fame.

    Details on the Perth Urban Rail Development Project will be released today and specific aspects of the additional initiatives will be released over the next few weeks.

    Mr Court said sale proceeds would be directed into projects that provided the greatest benefit to the most number of people, in the areas that the general community considered a priority for Western Australia.

    “By selling an asset and directing the proceeds into those areas the people of Western Australia believe are most important, like health, education and public transport, we are providing benefits that are building a stronger community,” Mr Court said.

    “We have gained the best possible outcome from this sale.

    “On the one hand, there is a high level of Western Australian ownership of AlintaGas securities, and on the other hand, the sale proceeds are being used responsibly to benefit people right around the State.”

    Media contact: Justine Whittome - 9222 9475