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May 5, 2008
Has the Iemma government left it too late to privatise its electricity assets (generators and retailers)? Though Costa and Iemma suffered a humiliating 702-107 vote against privatisation at Labor's state conference on the weekend, they are determined to proceed with the sale despite entrenched union opposition.
Will the government and the unions keep talking? If they do, the only realistic position is the compromise of some kind of public-private partnership in charge of the industry along with guarantees on jobs and future pricing.
Moir
Is this standoff a sign that the unions traditional influence over the parliamentary wing, with conference as the supreme policy-making body, is becoming history. What does business require in order to invest in new electricity generation--two new base load power stations and retro fit the old power stations--- under an emissions tradiing scheme?
No doubt we are going to hear a lot from the conservatives about bullying thuggish unions and minority interest groups running the state, along with other clichés such as the ALP conference looking like a rabble. The reality is that the Iemma Govt is a bad and incompetent government that deserves to be dumped. It hasn't because the Liberal Opposition is not politically credible and is even more incompetent.
The other reality is that the traditional form of the ALP is changing as its membership fall, the union's base shrink and it becomes ever more managerial in its ethos.
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It would be a mistake to flog off our electricity assets. If money is needed to build up our infrastructure why not achieve savings in other areas. The cost of multiculturalism is put at about AUD$7.2 billion each year. The NSW spending on that would be significant. There are other areas: Arts, commissions like anti-this and anti-that; the bonus system for senior public servants; and, other areas could offer savings.