Suits in $12m state payday

Ad Astra Corporate Advisory and McGrath Nicol were paid more than $1million over just six months to advise on the failed sale of the WA TAB.

About $12.3 million was spent by the state government on consulting contracts with 75 businesses in the six months to June, according to a report tabled in parliament today.

Treasury hired Sydney-based Ad Astra for commercial advice on the TAB sale process, with the report showing $654,500 paid to the consultancy over the six month period.

That followed $374,000 of fees collected for work on the deal in the six months to December.

The department had not replied to a request for comment at the time of publication.

Racing and Wagering Western Australia picked McGrathNicol to evaluate options for a new racing industry funding model to follow the proposed sale, to forecast funding, and assist in reviewing bids.

For that, the company was paid $377,000 in the June half.

In November, the state government abandoned the sale, which could have raised as much as $1 billion.

The walkback followed the lead bidder, Betr, withdrawing from the process.

The privatisation plan was not the only fee earner for consultants.

More than $500,000 was spent on advice for the emerging hydrogen industry, including assessing local electrolyser manufacturing opportunities, hydrogen blending targets, the Oakajee project, and for the Pilbara hydrogen hub.

PricewaterhouseCoopers was paid $209,000 to advise the state government on the market-led proposal for a screen production facility.

Hesperia’s plan to build the facility in Western Australia was given the green light in recent weeks, with Malaga the chosen location.

Keogh Bay People was paid about $325,000 to analyse the state government’s proposal for iron ore wagon manufacturing in the state.

BHP said in October it would assemble 140 rail cars in Bassendean over the next four years.