Thursday, 2 August 2012

Will the Chinese Government eventually dominate the NSW electricity transmission network?

One 26 July 2012 Nationals MP for Clarence Chris Would I Lie To You? Gulaptis told The Daily Examiner that there are no plans to sell poles and wires as part of the O’Farrell Government’s plan to fully privatize the NSW power industry.

Yet government is in the process of consolidating all poles and wires networks into a single corporation and, on 26 October last year the Premier told a Budget Estimates committee hearing that there had been no election promise to retain poles and wires in public ownership.

The Premier then went on to claim that he had been misquoted by Lithgow media on 28 January 2011 when one paper attributed this statement to him; We have absolutely no plans to privatise either the generators or the poles and wires.

By March 2012 the O’Farrell Government had legislation in place which would allow privatisation of state-owned power generators which is expected to bring in between $3-$4 billion in total when eventually sold.

Here on the NSW North Coast privatisation of state-owned assets is a sensitive issue given that historically such state sales are often accompanied by job losses or price hikes to consumers. One estimate is that up to two hundred jobs would be at risk in the Clarence Valley alone.

1 comment:

peter said...

In business, there is a golden rule: never outsource core function. The government equivalent is: never sell critical infrastructure control overseas.

Why? Because another country could undermine the infrastructure in times of serious disagreement.

Not of course that China would ever do that.

We hope, because if they own the power generators and the poles they sure could cause some chaos.