Liberals prepare sale of ACTEW

October 28, 1998
Issue 

Liberals prepare sale of ACTEW

By David Gosling

CANBERRA — Kate Carnell's Liberal government is proposing the sale of the ACT's electricity and water provider, ACTEW. Carnell claims the sale is necessary to pay for superannuation liabilities.

If the sale does not go ahead, ACTEW will lose $500 million in value next financial year, the government argues.

The government and ACTEW have refused to release a report by consultants ABN-AMRO, from which the government gets its figures, to the Australia Institute, which has been contracted by the Trades and Labour Council to investigate the sale.

Despite Carnell's claims that all jobs will be guaranteed in a privatised ACTEW, if it is bought by an interstate or overseas operation, as many as 400 jobs at ACTEW head office could be lost.

The minority Liberal government, facing opposition from Labor and the Greens, needs the support of at least two of the three right-wing independents in the Legislative Assembly for privatisation. This has forced the government to compromise, proposing to sell the electricity side of the operation and offer a 50-year franchise on water and sewerage.

After the disasters of privatised water, sewerage and power services around Australia and in New Zealand, public opposition to the sale is high. The Communications, Electrical and Plumbing Union has called for a referendum on the sale.

The CEPU, the ACT branch of the Community and Public Sector Union, the Electrical Trades Union, the Greens, the Democratic Socialists and members of the ALP are campaigning to retain ACTEW as a public service with petitions and stalls.

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