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Government agrees to let Parliament vote on privatisation - can they be trusted?

Friday 29 February 2008

26 February 2008- A Greens Private Members Bill has prompted the government to make an assurance to parliament there will be no privatisation of the electricity industry without new legislation. However, the government refused to release details of when this would happen and what form the legislation would take.

Concerned about the government’s apparent intention to bypass parliament over the sell-off of the electricity industry, Greens NSW MP John Kaye introduced the No Mandate, No Privatisation Bill in February 2008.

The key provision of the Bill is:

s. 4(1) None of the main undertakings of an energy services corporation*, and
none of the main undertakings of any of its subsidiaries, may be sold,
leased or otherwise disposed of, unless the disposal is approved by
resolution of each House of Parliament.

*The energy services corporations include the publicly-owned electricity generators and distributors (of which the retailers are a “main undertaking”).

The Greens put forward the Bill after the NSW Government announced that it had legal advice that it did not need the Parliament's permission to privatise the state's billion dollar electricity industry.

With the support of the Coalition, Shooters Party and at least one Christian Democrat member of the NSW upper house the Greens were able to bring the No Mandate No Privatisation Bill on for consideration.  John Kaye gave the second reading speech for the Bill.

However, in an effort to neutralise the Bill the NSW Treasurer Michael Costa gave the following response in Parliament to a question about electricity privatisation:
 
The Hon. MICHAEL COSTA: "After discussions with both the Christian Democratic Party and the Shooters Party I can give the House an assurance that the Government will ensure that any sale, lease or disposal of the main undertakings of an energy service corporation or its subsidiaries will be determined by the Parliament of New South Wales."
 
This was the first time the government had given an assurance that the Parliament would have the opportunity to vote in relation to the privatisation plan. However, in giving this assurance the Treasurer did not give any details of how or when this might happen.

It is not know, for example, whether the government will wait to introduce legislation until it is already a long way down the track of privatisation. The government has already committed millions of dollars towards the sale, in consultant fees and an expensive advertising campaign, for example.

The Greens will be pushing ahead with the No Mandate No Privatisation Bill. To find out about the progress of the campaign visit the No Mandate No Privatisation Campaign page.


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