Budget sets sale for port

Premier Colin Barnett and Treasurer Mike Nahan announced the State Government would sell Fremantle Port through a long-term lease and use the proceeds to reduce debt and fund major new projects.

With a forecast operating budget deficit of $2.7 billion and a debt of $31 billion for 2015-16, Mr Barnett said the Government's decision to sell Fremantle Port would enable it to continue building the economic infrastructure of the State without adding to debt.

"The decision to pursue a sensible program of further asset sales will enable the Government to build new infrastructure to support future growth without putting further pressure on the State's finances," he said.

Fremantle MLA Simone McGurk said the sale of Fremantle Port should make locals angry.

"Many will be dismayed to hear that Fremantle Port will be run by private operators," she said.

"It is no surprise that WA is losing credibility with the credit ratings agencies."

Fremantle Mayor Brad Pettitt said the council was surprised to hear the announcement about the port.

"The City has a good collaborative relationship with the Fremantle Ports to deliver key projects and services, including Victoria Quay and linking the Fremantle CBD to the water," he said.

"I am concerned about the impact of privatisation on the future of the working port, especially at a time where transport links such as the Perth Freight Link are being heavily debated and that will affect our long-term vision for Fremantle."

The State Budget included $143.9 million for the Perth Freight Link and $44.2 million for works to maintain services at Fremantle Port's inner harbour and developments at Victoria Quay.

Some of the $34.1 million set aside for south metropolitan schools will also go to the amalgamation of Hamilton and South Fremantle senior high schools.