The Federal Government’s experience with Telstra – and the rapid march of once State controlled vital infrastructure into private hands in economies across the world – indicates that regardless of avowed intentions private equity and public ownership mix about as well as oil and water.

It is to be expected – and we suggest time will bear out this point of view – a partially privatised NSW electricity sector will not work as effectively as the current arrangement. Odds are it won’t work as effectively as a fully-privatised arrangement would either.

The reason for this is that what is being proposed is neither fish nor fowl.

Mr Iemma’s blend of State and private ownership brings together two visions of corporate management that must automatically come into conflict.

Any student of the interesting relations between Telstra’s current managers – who put the needs of shareholders first – and the Federal Government, with its insistence on responsibility to the community, in recent times will grasp this.

The public ownership model was originally adopted for major utility monopolies decades ago for the simple reason the services they provided were considered too important to be in the hands of individuals.

Community ownership – and responsibility to the needs of the community – was considered to be the most acceptable approach.

The goals of an organisation that operates on this moral plane must, of necessity, be very different to those of operators whose stated intention is to maximise the return to shareholders.

Unfortunately when it is seen that the arrangements currently being proposed are falling apart there will be no possible way of putting the genie back into the bottle.

The only answer, we will be told, is to proceed with full privatisation – not a reversion to state control.