One Nation has trumpeted its voter preference deal with the Liberal Party, saying it should guarantee the party the balance of power and the ability to block the part-sale of Western Power if Colin Barnett is re-elected next month.

In a bizarre consequence of the preference-swapping arrangement, the Liberals admit they have done a deal with Pauline Hanson that could result in their $11 billion plan to reduce debt and build new infrastructure being torpedoed in the Upper House of Parliament.

“I have to deal with the reality that there’s a rejuvenated One Nation party out there,” the Premier said yesterday when asked if he had been forced into the preference deal. “I wish I didn’t but I do. We’re not endorsing One Nation candidates or policies in any sense.”

He said the plan to sell 51 per cent of Western Power would be put to Parliament and be negotiated like any other legislation.

In another twist late yesterday, One Nation’s WA leader Colin Tincknell said his party would have put Liberals ahead of Labor, the Greens and Nationals whether or not a deal had been done.

“We were always going to preference the Liberals before Labor and the Greens and the Nationals anyway,” Mr Tincknell said. “That’s always been our policy,”

Earlier, he declared his party the “third alternative” in WA politics thanks to the Liberal deal.

He said the deal would allow his party to have “double the number” of people in Parliament.

“Before this preference deal we were looking at getting just a few people in Parliament — probably not enough to get balance of power,” Mr Tincknell told 6PR radio.

“However, since this preference deal we should be able to gain the balance of power and that will enable us to stop the sale of Western Power, stop the sale of the TAB and stop the sale of the (Fremantle) port.”

Mr Barnett said he anticipated that a “difficult” Upper House would form regardless of how well One Nation polled and that the preference deal with Senator Hanson was just a “mathe-matical exercise”.

The deal means One Nation will give the Liberals its second preferences in the Lower House seats where it has candidates running.

In return, the Liberals will put One Nation candidates ahead of the Nationals, Greens and Labor in Upper House seats.

“The objective is to maximise the Liberal Party vote, particularly in the Lower House,” Mr Barnett said. He described One Nation as a “more moderate and more responsible group of people” than in the 1990s.

Play Video Has Colin Barnett sold his principles to do a deal with Pauline Hanson? The West Australian Video Has Colin Barnett sold his principles to do a deal with Pauline Hanson?

Nationals leader Brendon Grylls said the deal would damage Mr Barnett’s chances of winning a third term in government.

“Colin Barnett has decided it would be easier to work with Pauline Hanson,” Mr Grylls told ABC radio.

“This decision can be judged by the voters for what it is.”

The deal does not damage the Nationals’ chances in the Lower House because the Liberals will still preference their partners in Government in whatever seat they are contesting.

The deal means the Liberals will place One Nation candidates higher than the Nationals running for the Upper House.

Senator Hanson claimed yesterday Labor had tried to do a preference deal but a Labor spokesman denied the claim.