D-Day For Power Sale

A report from the SMH Breaking News section

Wednesday August 20

D-Day For Power Sale

The fate of the NSW government's electricity privatisation plan should be known on Thursday, when an Auditor-General's review is released.

Premier Morris Iemma asked NSW Auditor-General Peter Achterstraat to review the plan after the state opposition declared it would oppose the sell-off unless the scrutiny occurred.

With a number of Labor MPs also threatening to cross the floor, the power sale legislation would have been defeated.

Mr Achterstraat will hand down the findings of his review into the "transfer of electricity assets to the private sector" on Thursday morning.

He has been examining a model that would see the sale of electricity retailer EnergyAustralia by the end of the year.

The privatisation proposal also includes the public share offering of an combined entity made up of Integral Energy and generator Eraring Energy in the second half of 2009.

The other retailer, Country Energy, is to be sold off, while generators Delta Electricity and Macquarie Generation will be leased out in long-term agreements.

Mr Iemma said if Mr Achterstraat gave the proposal his approval it would be the third report to endorse the government's plans.

"The government has always had confidence that our plan to secure the state's future energy needs represents the best result for the economy, taxpayers and the environment," he said.

"The Owen Report, the Unsworth Review and the Rural Community Impact Statement have all endorsed the government's strategy."

Once the auditor-general's report is released, Mr Iemma said Opposition Leader Barry O'Farrell must also declare whether he will support the sale in parliament.

"It's release will also set a test for Barry O'Farrell, who has dithered and delayed and hinged his decision on the recommendations of the report," he said.

"He'll have to finally declare his hand tomorrow (Thursday)."

Mr O'Farrell and Nationals Leader Andrew Stoner have said they will await the auditor-general's findings before declaring whether they support the privatisation push.

Mr Iemma and Treasurer Michael Costa have also previously said they may amend the proposal if Mr Achterstraat recommends against it.

The privatisation-push has caused a split within NSW Labor ranks after the ALP state conference overwhelmingly rejected the sell-off back in May.

Mr Iemma's defiance of the party vote has caused a rift between him and Labor's head office as well as with some in his own parliamentary team.