Liberals attempt to buy NSW votes
By Marina Carman
SYDNEY — Vote Liberal and get $1000 (or $1100 in shares). Sound too good to be true? It is. Electricity privatisation will be a big issue in the Liberals' campaign for the March 27 NSW election.
Liberal leader Kerry Chikarovski's proposes to sell all state electricity distribution and generation assets, valued at $25 billion. The proceeds would be used:
- to retire state debt of $18.6 billion (saving around $500 million each year in interest);
- for new infrastructure worth $2.6 billion;
- to fund a cash giveaway of $1000 per household (or$1100 in shares), at a cost of $2.6 billion;
- to guarantee residential power price cuts of $100 each year for three years, at an estimated cost $600 million; and
- to guarantee electricity industry workers' employment and other redundancy conditions for three years, estimated to cost $600 million.
While it appears that the people of NSW might get $1000 for "nothing", they will lose much more if they take Chikarovski's bait.
Recent experiences with electricity in Auckland and gas in Victoria suggest that running utilities for profit rather than as a social service results in run-down plant and equipment, jeopardising safety and delivery of service, job losses, increased prices and the deprivation of electricity for those least able to afford it.
What will happen to jobs and the price of electricity after the three-year "guarantee" is over? The Victorian experience suggests one third of employees will be retrenched. After state debt is retired, where will the tax revenue go that was earmarked for interest on state debt? Most likely in tax breaks to the buyers of the electricity assets, as happened in Victoria.
The ALP has made noises that electricity privatisation is off its agenda — after having put the privatisation process in place.
The Democrats have advocated a "privatisation based on merits of the situation".
The Democratic Socialists oppose power privatisation without ifs or buts. Privatisation means big business gains at workers' and consumers' expense.
[Marina Carman is Democratic Socialist candidate for the seat of Port Jackson in the March 27 NSW election.]