The Barnett Government's asset sale program is facing fresh uncertainty with the racing industry deeply concerned by the Premier's approach to the proposed sale of the TAB.

Key points: Colin Barnett says racing industry can provide TAB sale advice, not play central role

Colin Barnett says racing industry can provide TAB sale advice, not play central role Premier's comment sparks industry call for urgent clarification

Premier's comment sparks industry call for urgent clarification Labor and Nationals unlikely to support sale without industry support

The WA Racing Representative Group called an urgent meeting yesterday afternoon after Premier Colin Barnett appeared to cast doubt on the industry's role in the privatisation process.

"It adds a whole new level of risk and uncertainty to the process because obviously the Government isn't expert in the area of the racing industry," group spokesman Michael Grant said.

The group was appointed by the industry to negotiate with the Government on the proposed privatisation to ensure the racing industry's interests were protected in any deal.

The industry sees the privatisation as a transaction involving three parties — the Government, the purchaser and the industry, which supplies the racing product.

But Mr Barnett has made it clear while the industry can provide advice, it will not play a central role.

"The industry is not going to be handling the privatisation of the TAB. Some may think they will, but the Government will handle that," he said.

"It's a Government process. It's a Government asset and the Government will sell it. But we will certainly involve the industry and take advice, but they will not be party to the privatisation."

Mr Grant said the industry had spent two years and hundreds of thousands of dollars exploring the privatisation proposal, and working with the Government to ensure the racing sector remained viable with the TAB in private hands.

"The racing industry has only ever sought to assist the Government. We have never proposed or attempted to take control of the process or dictate the process," he said.

Industry seeks 'urgent clarification' on role

But he said there was widespread concern at the Mr Barnett's comments, and he had written to the Premier seeking urgent clarification.

"We would be calling on the Premier to add clarity around his comments yesterday and give further understanding as to exactly what role he sees the racing industry playing."

Mr Grant said for the industry to support the deal, it needed to have a clear understanding of the benefits and risks, and a direct input into how the privatisation would be structured to continue to support racing in WA.

"That's been acknowledged in the other successful privatisation processes in New South Wales and Victoria where the industry has sat at the table with the Government and the acquirer in understanding the structures and processes attached to privatisation," he said.

"Without the product that the racing industry provides, there is no value to the TAB."

Both the Nationals and Labor have previously indicated they would only support the sale of the TAB if it had the support of the industry.

The TAB is one of a string of assets targeted for sale by a government desperate to contain and pay down spiralling debt.

But the asset sales program has been plagued with problems.

The Nationals have refused to back the Government's proposed sale of Fremantle Port and the sale of Utah Point Port in the Pilbara has stalled with the proposed legislation being reviewed by a parliamentary inquiry.