Legislation to enable the sale of the SGIO by public float has been passed by State Parliament.
"The SGIO Privatisation Bill 1992 is an historic piece of legislation," Minister assisting the Treasurer, Geoff Gallop, said today.
"It is the first of its kind in Western Australia providing for the sale by public float of a statutory authority," Dr Gallop said.
"The Bill received support from both sides of the House and the legislation will now go to the Governor for Royal Assent.
"After that, SGIO Insurance Ltd will be formed, and the new board will be formally appointed.
"Substantial progress has already been made in setting up a program for transferring the insurance business from the State Government Insurance Corporation to SGIO Insurance Ltd."
Dr Gallop told Parliament in his second-reading speech that the decision to sell the asset was made after considering the needs of the organisation, the priorities facing the State and the very competitive condition of the local insurance industry.
"The decision to float the SGIO affirms the Government's commitment to use available resources to best advantage. It is also part of the Government's continued commitment to microeconomic reform.
"The Government accepts its ongoing responsibility for social insurances, such as industrial diseases and compulsory third party insurance, through the proposed Insurance Commission of Western Australia (ICWA), which will replace the State Government Insurance Commission.
"The public float of the SGIO will create a strong WA-based general insurance company and will provide Western Australians with an opportunity to invest in one of the State's great enterprises."
Dr Gallop said the timing of the float and the price of shares to be offered would depend upon market conditions and, in accordance with the corporations law, would be announced in a prospectus.
"The Government will be advised by the investment bankers to the float on the most appropriate timing."
