The West Australian government is running out of options to improve its finances and could sell Western Power if the ongoing push for greater GST revenue proves fruitless, the premier says.
Asset sales were top of the agenda when Colin Barnett and Treasurer Mike Nahan faced the media after WA's third consecutive credit rating downgrade on Monday.
Moody's said there was an increasing risk that debt would be higher than forecast due to the weak iron ore price, sluggish performance in payroll and other taxes, and not enough spending cuts.
Dr Nahan told reporters that while Moody's assessment was fair, the downgrade was "gut wrenching" as it would increase the cost of debt, which he hoped to cap at $30 billion through asset sales and convincing the federal government to improve WA's GST share.
"We will respond more but we cannot continue to chase our tail down a crevasse," he said.
"We have to fix, address this issue of GST.
"I have put forward some ideas to the treasurer on excising the North West Shelf - that has the potential ... depending on how it's done, to advantage Western Australia over four years by between $2 billion and $4 billion.
"We have not finalised those discussions."
To prop up the state's ailing balance sheet, all possibilities were on the table, Dr Nahan said.
He said he was extremely reluctant to sell Western Power but at the same time, "everything will be looked at".
"Right now, it's off the table. We need right now to focus on the deficit and the cause of it."
Mr Barnett said he also didn't support selling Western Power.
"However, if we don't get any correction in the GST situation and we continue to be penalised by the Commonwealth and the other states, then we will have to look at further asset sales.
"There is no other way that we can manage to maintain the most essential thing, and that is good health care and good education for the people of this state.
"We are running out of options.
"I am reluctant and hesitant to go down that path."
Opposition treasury spokesman Ben Wyatt said a desperate fire sale of public assets was not the way to fix a crippled budget.
"How did it get to this?
"After one of the biggest periods of prosperity in state history, the Liberals have managed to turn a state budget that was the envy of the nation into a national embarrassment."
