Iemma’s electricity privatisation undermines Rudd’s Kyoto commitment

Greens NSW MP John Kaye said: “Premer Iemma’s privatisation plan is designed not only to rip off a windfall profit for state revenue but also to build a new coal fired power station.

“Both private ownership and more coal burning will push up this state’s greenhouse gas emissions.

“Meanwhile Prime Minister Rudd has ratified the Kyoto protocol. As the United Nations' chief climate negotiator Yvo de Boer points out, the legal binding agreement will impose financial penalties if this nation fails to reach its targets.

“Ratifying Kyoto was a huge step forward, enthusiastically supported by the Greens. But it means each level of government now has to be serious about reducing emissions.

“A privately owned electricity industry will inevitably want to increase profits by selling more energy. The upwards pressure on demand will boost this state’s CO2 emissions.

“A 10% growth in electricity demand would result in greenhouse gas emissions increases of 6 million tonnes of CO2 a year. This could cost NSW more than $300 million a year.

“A new coal fired power station would emit about 8 million tonnes of CO2 each year, which could attract penalties of $400 million.

“The Owens report push for electricity privatisation makes no sense economically in a world committed to reducing greenhouse gas.

“It is also very bad news for consumers and for electricity industry workers.

“Premer Iemma and his Treasurer Michael Costa are trying to sneak through privatisation as the state winds down for the summer vacation. The Labor caucus has a chance to show it cares more for the environment and the rights of industry workers by rejecting their leaders’ scheme,” Dr Kaye said.