Eastern lights go out on sale

BY PAM WALKER
Opposition to privatisation of the electricity network crosses party lines in the Eastern Suburbs. Both Labor MP for Coogee Paul Pearce and Liberal Vaucluse MP Peter Debnam have openly defied their parties to make their opposition public.

Mr Debnam stepped down from his shadow portfolio on May 12 because he could not support the Coalition stance on the issue.

‘I’ve argued for the Coalition to take a strong stand against the privatisation and in favour of clean renewable energy. However, in my view, the conditional acceptance announced late last week by the Coalition effectively surrenders to [Treasurer Michael] Costa’s Privatisation,’ Mr Debnam announced.

‘Given my strong views, it is untenable for me to continue as the Shadow Minister for Energy and remain on the frontbench simply biting my tongue.

‘I remain opposed to Costa’s fire-sale of assets which is simply to find more money for the Iemma Government to splash around in the next election campaign – with the added expense of handing over more than $100 million in fees to merchant banks participating in the Costa Privatisation.’

Mr Debnam said the ALP conference showed the Labor party itself did not support privatisation.
‘The sale is driven by Costa and [Premier Morris] Iemma who are hijacking the whole state to privatise electricity.’

The Vaucluse MP said governments were best placed to run the electricity network, especially as the community was ‘screaming out’ for action on climate change. He said the biggest offender was the electricity industry and the sale would make effective action difficult as the market would not deliver without intervention.
‘Mr Costa will determine the terms and conditions of the sale and the environment is not a priority for him,’ Mr Debnam said.
‘Costa is a sceptic and putting it in his hands will achieve nothing. This is an opportunity for the solar industry which vested industries have put the cap on. We all need to stand up and say that as a community we want solar and we need to overcome the public sector prejudice against solar.’

Labor Coogee MP Paul Pearce is also concerned about the environmental impacts and fears we will be saddled with a result like that in California where private owners will resist the imposition of environmental controls in their effort to maximise profits.

He points out that during a blackout in Melbourne recently it took one and a half weeks to reconnect power because private distribution companies had run down the workforce.

Mr Pearce also wants some level of government ownership and control and has been proposing a mix of public sector ownership, a public float using super funds, and private sector investment.
‘If you’re going to have any public ownership, it must be a mix of generation and retail. That mix would be healthy and keep the private sector healthy. I’ve raised this in caucus and every time, it looks as though the treasurer is about to go ballistic. A compromise needs this sort of partnership,’ he said.

But any efforts to reach a compromise are being derailed by Treasurer Costa.
‘There’s no desire from Costa to reach any compromise ‘ it’s all or nothing. He’s only interested in the sale and is not interested in environmental or social impacts or social equity or employee issues. That’s all secondary. He will not discuss anything other than privatisation,’ Mr Pearce said.

The issue is expected to go before the Parliament in the next two weeks, before the winter recess. Mr Pearce said that unless there was real movement on the ground between the unions and the party, the numbers were there to push through privatisation: 75-80 in the lower house and 15-17 in the upper house.
And would he cross the floor’
‘Depends. I will not vote for a Bill that leads to privatisation. I will abstain or vote against it,’ he said.

And Opposition leader Barry O’Farrell has now indicated the Coalition may vote against the sale, making it difficult for Labor to get the Bill through the Legislative Council as the Greens and Christian Democrat Gordon Moyes have already signalled they will vote against privatisation.