PM Abbott backs state asset sales

Prime Minister Tony Abbott says it is smart to sell off state assets and reinvest the money in roads, rail and ports.

Federal Treasurer Joe Hockey will discuss the issue of incentives for state governments to privatise assets at a meeting of the nation's treasurers on Friday.

Asked by Labor MP Alannah MacTiernan in parliament whether West Australian government assets would be sold, Mr Abbott said such sales would unclog the arteries of the economy and provide money for new infrastructure.

"We want the infrastructure for the 21st century," he said.

"If we can help the states to deploy resources from a lesser priority to a higher priority, well that's a very smart thing."

Finance Minister Mathias Cormann, who on Wednesday announced Medibank Private would be sold through an initial public offering in 2014/15, said talks were progressing with the states on asset sales.

Mr Hockey had been having conversations with his state counterparts about measures to provide incentives to recycle capital and invest it in productivity-enhancing infrastructure, he said.