[Greens-Media] Auditor-General's evidence condemns sell-off focus, demands more openness and accountability

[John Kaye]

Auditor-General's evidence condemns sell-off focus, demands more openness and accountability
 
Media release: 7 November 2012
 
The NSW Auditor-General's report on the electricity sector sends a powerful message that Labor's obsession with selling the generators and infrastructure gold plating are costing households and the state's coffers, according to Greens NSW MP John Kaye.
 
(Auditor-General: Volume Four 2012 focusing on Electricity, 7 Nov, http://j.mp/ag121107)
 
Dr Kaye said: "The time until the state's generators will struggle to meet demand has now stretched out to a decade and beyond.
 
"A key argument for the O'Farrell government's power sell-off  has fallen apart, with no generating capacity shortfall predicted until sometime after 2021-22. 
 
"If and when the reserve point is reached, then problem will be meeting peak demand not baseload. Demand management and renewable energy options will be cheaper, better for the environment and much less likely to become white elephants.
 
"The Auditor-General yet again underlines the previous Labor's government's inexcusable blunders in allowing the distributors to gold-plate the wires and poles and pushing ahead with the ill-fated gentrader transaction.
 
"Households and the state's finances are paying the price of Labor's failure to listen to the opposition to the unnecessary network upgrades and the sale of the output of some of the state's power stations.
 
"The Auditor-General highlighted the costs to the budget of the stranded assets left with the distributors after the retailers were split off and sold and the liability for the failure of a transformer at Eraring power station.
 
"The previous government's grab for cash saw the profits privatised, while risks and liabilities were kept in public hands.
 
"The O'Farrell government is set to repeat the same error with both their generator privatisation and leasing the ports.
 
"Household budgets and the state's coffers are already taking a direct hit because of Labor's electricity industry follies. Now the O'Farrell government is about to make matters much worse.
 
"The Auditor-General is pushing the O'Farrell government to release its plans for the future of the giant Cobbora coal mine which is designed to provide subsidised coal to the state's power stations.
 
"Treasurer Mike Baird was highly critical of the project when he was in opposition. Now he is pushing ahead with a mine that will fatten up the profits of the purchasers of the state's power stations by providing them with below-market priced coal.
 
"The O'Farrell government will struggle to comply with the Auditor-General's recommendation. 
 
"The release of the Treasurer's plans for Cobbora will inevitably expose the on-going costs to the budget bottom line of a giant coal mine that is little more than a gift to the giant corporations that are circling the state looking to purchase the power stations. 
 
"The challenge is now with the O'Farrell government who promised to be open and accountable but who can only fatten up the power stations and Cobbora for sale by leaving many of the costs and risks for households to pay for over the next twenty years," 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