This week in wa – 10 years ago

$1.5 billion WA Inc bill made public

Western Australians were given the “official estimate” of the cost of

WA Inc for the first time this week 10 years ago.

Then Premier Richard Court told the media that WA Inc would cost $1.5 billion.

The breakdown of costs was $492 million lost through the State Government Insurance Commission, $139 million through the Government Employees Superannuation Board, $39 million through BankWest, $413 million through the failed Petrochemical Industries, $22.6 million through Rothwells, $129 million through Teachers Credit Society and $18.8 million through Swan Building Society.

Western Australians were later to learn that they would have to pay a $50 WA Inc levy on third party vehicle insurance premiums.

Mr Court also announced that there were contingent claims against the Government from developer Warren Anderson for money lodged with Rothwells.

News reports from last year had it that Mr Anderson was clear to pursue his $50 million claim in 2005.

The announcement of the WA Inc cost came just days before former Premier Brian Burke was to appear in court on charges of stealing monies from the Australian Labor Party.

On the Federal political scene, the Business Council of Australia was attacking the Government’s proposed carbon tax, saying it would cost 47,000 jobs and $43 billion in production in Australia’s energy industries.

The South West was expected to be hardest hit in WA if the tax went ahead.

Also down south, logging was becoming a hot topic.

A study for a $500 million pulp mill and the jobs of 500 timber workers were under threat unless logging resumed in areas being reviewed by the Federal Government.

Whitakers Limited chairman Bob Bunning told the media that the structure of the National Estate listing made it likely most of the 66 cutting coupes in WA would be on the second line priority for Government investigation.

The company called a trade halt in its shares because of board doubts about the company’s future if revised logging quotas were introduced.

In the north of the State, Woodside Petroleum announced that its long-awaited Goodwyn A offshore production platform was finally in action. The $2 billion Goodwyn A project suffered a setback two years earlier when a major deformation of the piles supporting the substructure of the offshore platform was discovered.

Also on the North West Shelf, BHP Minerals was facing Native Title difficulties for its $350 million Pilbara Energy Project that involved construction of an oversize gas pipeline between Dampier and Port Hedland.

The Federal Native Title Tribunal had accepted a native claim that would force major mining companies to discuss compensation payments for developments in the Roebourne area.

BHP also announced that it would close its Kwinana steel rolling mill on May 5 because the company could not economically justify its operation.

On the mining front, a Chinese Government agency’s takeover of Portman Mining was blocked by a group of dissident Portman shareholders.

Portman was the target of CITIC Australia which, had the scheme to issue it shares worth $37.8 million gone ahead, have owned 52 per cent of the miner.

In that same week, Portman also announced that it was reopening its Woodie Woodie manganese mine in WA following sales contract agreements. Ironically, Woodie Woodie is now owned by Consolidated Minerals which was touted as a potential takeover suitor for Portman last year.

In the mineral sands world, Korea’s Hanwha Corporation announced that it would revitalise ICI’s zirconia facility in Rockingham as part of its diversification into advanced ceramics.

Gwalia Consolidated also announced that it would proceed with its $10 million silica sand project at Kemerton.

And finally, while the housing sector boom is all the rage these days, this week 10 years ago signs of the housing market entering a downturn were evident.