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MPs reject power sell-out

12 Dec, 2007 06:57 AM
COUNTRY Energy’s laudable response to last weekend’s power crisis was one of the best arguments yet for keeping electricity retailing in public ownership Peter Draper, the independent member for Tamworth, said yesterday.

The electricity sell-off has also been opposed by fellow independent and member for Northern Tablelands, Richard Torbay, and senior union representatives.

Mr Draper said Country Energy staff had responded very effectively to massive infrastructure damage in the Tamworth area and across the region on Friday night.

Changes to the current structure as a result of privatisation may compromise the response to future such events.

Mr Draper was also critical of “protection” packages targeting workers likely to be affected by the sale of electricity retailers Country Energy, EnergyAustralia and Integral Energy. He described them as smokescreens designed to create the illusion jobs were safe and consumers were protected.

Mr Torbay, who was appointed speaker of the House of Representatives after the March 24 election, also opposes the Iemma Government on this issue.

“This is another example of the Government treating country people as second class citizens,” Mr Torbay said.

He believes strong public opposition may well be the only way to prevent the privatisation going ahead.

Mr Torbay said the sale was a “ploy” – similar to the former Howard Government’s sale of Telstra – to raise cash.

Unions NSW secretary, John Robertson, fears privatisation could ship 3000 NSW workers’ jobs overseas.

“We don’t believe it is good for working families as consumers in NSW or workers in the industry,” he said.

“The State Government is eager to buy off workers with ‘transfer payments’. The reality is many ofthese workers could lose their jobs... if the sale proceeds.”

The Iemma Government has promised “transfer payments” of up to $40,000 to employees who agree to have their jobs moved to the private sector.

This promise – and a commitment to extend controls over electricity prices for consumers to 2013 – is believed to have helped to ease the passage of the privatisation proposal.

Monday’s “yes” vote ends a 10-year stalemate which began when former NSW premier Bob Carr and his treasurer, Michael Egan failed to win caucus or union support for a sell-off in 1997.

Mr Iemma said the $15 billion to be raised from the sale and lease arrangements would help pay for a new base-load power station and several infrastructure projects including better country roads and improved regional water management.

The privatisation plan has been supported by the NSW Business Chamber.

Chamber chief executive Kevin MacDonald said jobs did not need to be protected in the electricity sector as the move would create $15 billion of private sector investment in the power industry.

“And, second, unemployment in the Hunter is at a historic low of 4.1 per cent which is below the NSW and Australian averages,” he said.

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