[Greens-Media] A-G report undermines power sell-off timetable

[John Kaye]

A-G report undermines power sell-off timetable
 
Media Release: 21 August 2008
 
Opposition Leader Barry O'Farrell must reject Treasurer Michael Costa's power sell-off legislation if he takes the Auditor-General's report seriously, according to Greens NSW MP John Kaye.
 
Dr Kaye said: "Mr Achterstraat's report leaves little room for rushing ahead with the legislation.
 
"Far from giving the plans a clear tick, the report exposed serious concerns about the costs of emissions trading, the failure to consider retention in public ownership and the enforcement of a reserve price. 
 
"The Auditor-General made it clear that there is still great uncertainty about the impacts of the emissions trading system on the sale process.
 
"If the Opposition passes the legislation in September then Treasurer Costa will be off the leash and could run ahead regardless of the effect of carbon costs on the sale price.
 
"Neither the Auditor-General nor Treasury have calculated the retention value of the assets.
 
"The Opposition has been dudded. It has not been given a reference point for evaluating the costs and benefits of the sale and cannot safely say that privatisation stacks up financially.
 
"Mr Achterstraat's recommendation that a reserve price be set for the sale sounds a grave warning for Mr O'Farrell.
 
"Even if a minimum sale price were set, the Iemma government is so blindly committed to the sell-off, there is no assurance it would be adhered to.
 
"The Opposition will lose all economic credibility if it signs off on a fire sale. AGL has indicated it would not be interested in the assets. Two other key potential purchasers are in doubt and international stock markets are in turmoil.
 
"The report only addressed the narrow question of the sale strategy. The Opposition has to also consider the appalling environmental consequences.
 
"Barry O'Farrell has one last chance to hold Michael Costa back. He should not blow it," 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