[Greens-Media] AGL misgivings mean power sell-off would be fire sale

[John Kaye]

AGL misgivings mean power sell-off would be fire sale
 
Media Release: 21 August 2008
 
Statements by electricity supplier AGL Energy that buying NSW's power stations would be a risky investment should cause Opposition Leader Barry O'Farrell to kill off the Iemma government's privatisation plans, according to Greens NSW MP John Kaye.
 
Commenting on a story on page 4 of today's Sydney Morning Herald ('Coal-fired stations too risky, says AGL') Dr Kaye said: "There is never a good time to sell the state's generators.
 
"However, Mr O'Farrell should realise that this is a particularly bad time to put them up for sale.
 
"He would be irresponsible if he lets this go on any longer.
 
"While the Opposition Leader might be enjoying the turmoil in the Labor party caused by divisions over the sell-off, it is time for him to show that the alternative government has economic management credibility.
 
"Mr O'Farrell can bring this to a rapid end by announcing that the Coalition will oppose the sell-off legislation. Together with Labor floor crossers, the sell-off legislation would not pass.
 
"AGL Energy identified uncertainty about the federal government's emissions trading scheme. The annual liability for the state's power stations could be a massive $3.4 billion if carbon trading certificates reach $60 a tonne.
 
"At this price the coal-fired power stations would be out-competed by combined cycle gas turbines, renewable sources like wind and energy efficiency. 
 
"Stock market turmoil and two of the potential purchasers being distracted by financial woes and a take-over bid will further reduce the sale price.
 
"If AGL, Origin and Babcock & Brown do not bid for the power stations, it is unlikely that the privatisation will fetch anything like the mooted $10 billion. 
 
"The sell-off is rapidly becoming a sale.
 
"Today's Auditor-General's report is likely to add to pressure on Mr O'Farrell to abandon Treasurer Michael Costa's privatisation push," Dr Kaye said. 
 
For more information: John Kaye 0407 195 455
 
 
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John Kaye
Greens member of the NSW Parliament
phone: (02) 9230 2668
fax: (02) 9230 2586
mobile: 0407 195 455
email: john.kaye at parliament.nsw.gov.au
web: www.johnkaye.org.au
 
mail: Parliament House, Macquarie St, Sydney NSW 2000