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Is privatising power a real turn-off? : Comments
By Carolyn Currie, published 3/9/2008What are the traditional justifications for privatisation, for example with New South Wales electricity?
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Private power concerns bought the old plants refurbished them, rationalised the maintenance and turned them profitable and more productive in a couple of years.
In NSW the gov is faced with a worse dilemma, with the new carbon trading scheme coming in the power stations are set to change from a minor loss to a major financial drain on the state. Financially it is a no brainer, Cash in pocket now vs. cash haemorrhage
Politically, with the public sector forming the back bone of the union base, it is unpalatable to the left.
As far as the liberals are concerned, they have a vested interest in ensuring that Iemma does not get to sell the power generation, as they can see no benefit in giving him a cash injection. So they support it in principle but not in practise.
For sure once the libs get in the power generation will be on the block immediately. In the mean whilst watching Morris dangle is better than having a piñata where the more you beat it, the more candy drops out.