[Greens-Media] Credit agency report tells Iemma to dump electricity privatisation

[John Kaye]

Credit agency report tells Iemma to dump electricity privatisation

Media Release: 14 February 2008

A new report by Standard & Poor's gives a clear warning that this is a particularly bad time to be privatising the electricity industry, according to Greens MP John Kaye.

Dr Kaye said: "The Iemma government sets its entire economic policy direction by the credit ratings handed out by Standard & Poor's.

"Premier Iemma cannot selectively ignore this report which graphically describes the impacts of the drought, the carbon market and global financial turmoil on the sale price of the electricity industry. 

"Standard & Poor's is not the first organisation to say that potential buyers are being made nervous by the climate of financial and policy uncertainty.

"The Greens, the union movement, the Public Interest Advocacy Centre and energy industry experts have been telling NSW Treasurer Michael Costa for months that he has embarked on a dangerous path that could result in a fire sale of assets.

"Mr Costa wilfully ignored our warnings but now he and the Premier have no choice but to take notice.

"This report gives the Premier the excuse he needs to reign in Michael Costa and put the sell-off on ice.

"It would be irresponsible to forge ahead with privatisation now that Standard & Poor's have warned potential buyers of the risks," Dr Kaye said.


For more information:	John Kaye 0407 195 455