Privatisation a Dangerous Power Play
Morris Iemma in direct defiance of his own party’s peak decision-making body, the State Labor Conference, has decided to privatise the electricity industry. Aside from the probable consequences of job losses and higher electricity prices, it will be interesting to see what this will mean for a Premier out of step with his constituency.
Bulletize.com
Entries RSS
A few days ago that failed politician, Barry Unsworth, (apparently still receiving money from the public purse) appeared on TV expressing his grave concerns that failure to privatise the electricity sector will lead to blackouts and brownouts. Our wonderful Premier Iemma, straight faced and ’sincere’ said the same thing.
I just have a few problems with their statements. How does privatising these assets increase base load generating capacity? They imply there is a link but I can’t see it!
Or are they going to invest the money in new plant? They haven’t said that but they have talked about the usual - funding for hospitals, transport and stuff. They are supposed to do that now.
But hang on there - they have had to invest in World Youth Day and now a road racing curcuit at Homebush Bay so the extra cash will be handy.
The recent Auditor’s report on privatisation arrangements is not an endorsement of privatisation. And strangely, the document referred numerous times to Lexicon Partners, advisors to the Auditor General. These people are hardly unbiased, they are part of the ‘club’ and of course they are going to support the arrangements.
The reality is that there is nothing stopping private investment in new generating capacity in NSW. There is nothing stopping state owned corporations from building new generating capacity in NSW. In fact with the favourable credit rating of State Government it may well produce a better outcome than private investment.
If insanity prevails and privatisation goes ahead there are some facts to consider
- the quality of electricity will not be any better
- the reliability will not be better
- the price will not go down
- the State will continue to pay the new owners all sorts of subsidies and sweeteners
- any cash from the sales will disappear on mismanaged and trivial schemes designed to keep Labor in power
- Morris Iemma and Michael Costa will not get less pay for a less responsibility
Steve
Comment by Steve Weatherstone | Tuesday 26 August 2008