[Greens-Media] Yet more wasted on power sell-off

[John Kaye]

Yet more wasted on power sell-off

Media release: 7 March 2014

The O'Farrell government has admitted spending $33 million on financial,
banking and legal advice for its power sell-off but Treasurer Mike baird is
refusing to admit how much was squandered on the failed Macquarie
Generation privatisation, according to Greens NSW MP John Kaye.

("Asset sales cost state $33m" Newcastle Herald, 7 March p. 26,
http://j.mp/NH070414)

Dr Kaye said: "The Mac Gen sale was always doomed.

"Treasurer Mike Baird should have known from the outset that selling the
Upper Hunter generators to AGL would run foul of the competition regulator.

"His advisers must have told him that the proposed sale would have left the
state's electricity industry dominated by just thee large players.

"The squeeze on households, small businesses and the 'second tier'
retailers would have left AGL in a position to set prices to suit their
profits.

"It was entirely predictable that the ACCC would oppose a sale that
resulted in three corporations controlling more than 80 percent of
generation and retailing.

"There is no excuse for the money that was wasted on a sale that was only
going to reach the reserve price if the purchaser could get enough market
power to push up household power bills.

"The O'Farrell government is clearly embarrassed. They are refusing to
breakdown the $33 million figure and tell the people of NSW how much was
squandered on the doomed Macquarie Generation deal.

"The Treasurer should come clean immediately and explain how much was spent
on merchant banks, big-end-of-town legal firms and accounting consultants
to produce no outcome.

"The data rooms, the due diligence tests and the bank reports would have
soaked up millions of dollars that could have gone to the Hunter's schools
and hospitals.

"The sale of Macquarie Generation should be abandoned before it squanders
more public money.

"Treasurer Mike Baird should put away his lust for cash and his ideological
obsession with privatisation before he does more damage to the budget," Dr
Kaye said.

For more information: John Kaye 0407 195 455

-- 
----------------------------------------
John Kaye
Greens NSW MP
phone: 0407 195 455
web: www.john.nsw.greens.org.au
----------------------------------------