The West Australian treasurer is confident the upper house will pass the state government's legislative bid to seize control of the Bell Group carve-up process.
A bill was introduced in May to ensure the Insurance Commission of WA (ICWA) jumped to the top of the creditors' queue after a $1.7 billion win by the liquidators of the Alan Bond-led Bell Group.
It could net the state government $700 million, including about $200 million that ICWA spent principally bankrolling litigation against banks that had extended Bell Group's loans in exchange for certain assets - just as it was on the brink of insolvency.
Treasurer Mike Nahan told AAP on Tuesday there had been a clear, historical understanding among all parties that ICWA's legal costs would be recognised as a priority when it came to distributing the proceeds, given funding the litigation was risky.
"We have many agreements to that effect," Dr Nahan said.
"The various parties are now trying to reinterpret their old agreements.
"It isn't so much the strength of claims that ICWA has relative to others - the real issue is to ensure that as per the many agreements that were entered into, ICWA's $200 million is considered a priority, as per corporate law.
"Then there's the issue about who has priority over the residual amount.
"It's not about trying to diminish people's claims. All parties will do well out of this, relative to cost."
Dr Nahan said he was confident the bill would pass through the Legislative Council when the parliament resumes after the winter recess, despite Liberal MP Nick Goiran calling for it to be reviewed by an upper house committee.
Dr Nahan said Mr Goiran had not been briefed on the matter so probably was not familiar with the particulars, but he would be brought up to date soon.
He also said he was not concerned by a planned High Court challenge by a Bell Group creditor, with litigation funder Hugh McLernon enlisting top silk and former WA governor Malcolm McCusker to argue the bill is unconstitutional.
"I'm not worried about that. We've put a lot of effort into making sure this (bill) is appropriate," Dr Nahan said.
"We will get it through. I'm confident.
"Of course, we would never even contemplate inhibiting anybody from pursuing a challenge in the court."
Dr Nahan said the matter had been bogged down in excessive litigation for decades "and I'm sure it will face that continuing pressure".
"That's why we're doing it."
Bell Group collapsed in 1991 and the ensuing litigation was the nation's most expensive and longest-running.
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