The WA government will rush through changes to laws that will give it first dibs as creditors on the late Alan Bond's failed Bell Group.
The urgent move comes after a High Court challenge was launched by a rival creditor that is further down the list - Dutch Antilles-based Bell Group NV and its liquidator Garry Trevor, arguing the legislation was unconstitutional.
There are five key creditors chasing a $1.5 billion pool of money that has been whittled away through legal battles from $1.7 billion less than two years ago.
But the coalition state government says it will finally end the nation's most expensive and longest-running court case.
"It is rushed to try and strengthen our case in the High Court. If we lose this, what will happen is $1.5 billion will be litigated, argued in the courts for the next 20 years until it is whittled away," Premier Colin Barnett told 6PR radio.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
"This was money lost by the Labor government during the WA Inc period. It's been sitting there for 20 years.
"The lawyers are having a field day, there are speculators that have bought into it.
"If we lose this, what will happen is $1.5 billion will be litigated, argued in the courts for the next 20 years until it is whittled away and that is a gross injustice to the people of Western Australia."
The Insurance Council of WA, formerly the State Government Insurance Commission, began the case in 1995 to recover loans worth $265 million to Bond's collapsed Bell group of companies.
