WA govt lashed for credit rating downgrade

THE West Australian opposition is accusing Premier Colin Barnett of reneging on a pre-election promise to not privatise a power utility.

It's also calling for the sacking of Treasurer Troy Buswell.

In the wake of WA losing its AAA credit rating with Standard & Poor's, WA Labor leader Mark McGowan on Thursday called Mr Buswell a "clown" and a "joker" who should be made to pay a price for trashing the state's finances.

Mr McGowan also accused the premier of going back on a February 21 pledge not to privatise Western Power, given Mr Buswell told Fairfax Radio on Thursday that power, port and water utilities were potentially on the block as the Liberal-led government sought to reduce debt.

Mr Barnett said he was only responding to a specific question at a media conference about privatising Western Power, and maintained it would not be sold.

"There will be extensive asset sales, not only because of the downgrade by Standard & Poor's but at this stage we're spending $7-8 billion a year on assets and projects and the like," Mr Barnett told parliament.

"And as we continues as a state to accumulate more and more, there's nothing particularly wrong with disposing some of the established and income-earning assets."

Mr Barnett said Australian superannuation funds would buy the assets and he didn't think there was anything wrong with that.

"The state has billions of dollars worth of assets. It's continually buying and selling assets.

"Is that privatisation? I don't know - you can choose your definition."

When Mr McGowan called it a fire sale, asking if the government would be in a weak negotiating position, Mr Barnett shot back: "It could be weaker - you could be in charge of negotiations".

Mr Buswell said ports would not be sold "in totality".

"But there are plenty of assets that sit within WA ports that we could look to sell."

He said asset sales would only solve part of the problem - namely too much spending and not enough income.

Mr Buswell said the key was major reform of the public sector, but acknowledged job culls would be met with fierce resistance exemplified by Thursday's teacher rallies.

"If the public response to what I think is some minor changes to the education system is anything to go by, we're going to have a heck of a time getting those public sector reforms through but they're critically important."

Talkback callers lashed the treasurer for saying on Wednesday the downgrade was a wake up call for the public and its expectations of government.

"Mr Buswell has got a nerve," one said.

The caller said it wasn't the public who wasted money on the botched Muja power station refurbishment, or gave hefty pay rises to government media advisers and the Water Corporation chief.

Another caller described Mr Barnett as "stark raving mad" for pushing unaffordable major infrastructure projects.

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