BankWest merger was on the cards
REMEMBER when BankWest and Challenge Bank were not owned by other banks?
Well 10 years ago this week their proposed merger was making big waves in Western Australia.
The WA Government, which wanted to privatise the bank once known as the R&I Bank of WA, was starting to lean towards the merger as the best option.
If it had gone ahead it would have created a $14.3 billion entity, making it the second largest listed regional bank after St George.
One thing standing in the way of the merger was the presence of then Premier Richard Court’s brother Ken as a director of Alan Newman’s investment vehicle Innerhadden Limited, which was Challenge Bank’s largest shareholder.
BankWest also decided to lift the housing rate by 0.75 per cent to 9.5 per cent. It became the second bank in Australia after Westpac to make the move. The business rate went up to 9.75 per cent.
The WA Government was also making big changes to the sale of energy in Western Australia.
A bill was to be put up to parliament that would create a new regulatory authority to provide the legal framework for splitting the State Energy Commission of WA.
It also entered into an enterprise bargaining agreement with SECWA’s 4,600-strong workforce. In return for two possible 3 per cent salary hikes SECWA workers agreed to reduce their union representation from 13 to two.
The EBA also scrapped the "use of contractors" agreement, limiting the number of private sector companies that could undertake maintenance and installation work for the commission.
In the oil and gas sector positive news came with BHP finding gas at its Macedon-3 well and Ampolex announcing plans to go ahead with full field development of its Wandoo Field in the Carnarvon Basin.
Wandoo production was scheduled to commence in the first quarter of 2007.
However, Woodside and Ampolex were hit by falling oil prices. Woodside announced that its half-year profit would fall to $35.39 million.
However, there was a silver lining to the oil cloud with higher liquefied natural gas prices expected out of Japan.
Forrestania and Gencor signed an agreement to clear the way for the development of the Maggie Hays mine.
In other parts of the mining-related world 22 silks gathered at the bar tables for the opening of WA’s challenge to the Commonwealth Native Title Act in the High Court. Sydney QC David Jackson led the WA Government’s case.
Also in the courts, former WA Deputy Premier David Parker was facing stealing charges. The Crown alleged he stole almost $58,000 from his election campaign account to pay his wife’s tax bills, buy air fares and shares and renovate his kitchen.
Gold prospector Steven Nichols was convicted of receiving $92,000 of stolen gold in a landmark case based on "gold fingerprinting" evidence.
In the deja vu file, news reports emerged of how industrial development was threatening Aboriginal rock art on the Burrup Peninsula.
Western Australian and Chinese investors signed deals worth up to $90 million to develop several joint ventures in the Chinese province of Sichuan.
Central Norseman Gold Corporation shareholders who had kept the faith finally received a 2.5 cent final dividend. The company had not released a dividend for six years.
