ABC Finance

Iemma preparing for privatisation face-off

Monday May 5, 03:56 PM

New South Wales Premier Morris Iemma has cleared his diary to hold a series of meetings to shore up support for his plan to privatise the electricity sector.

Caucus has twice voted to support privatisation, but a sizeable number of MPs are now seeking another vote in light of the state Labor conference's outright rejection of the plan.

Mr Iemma is due to report back to Caucus tomorrow on his response to the conference.

The Premier says he is preparing for a fight.

"It's been an issue that's generated a lot of debate and emotion, and they're quite welcome to continue the debate," he said.

Unions NSW secretary John Robertson says while he is willing to discuss supply, he is not flexible on any sale.

"We are happy to sit down and talk about how we ensure, in the same way the Premier wants to, the future generating needs," he said.

"The Premier's right. There is no disagreement that there'll be a shortage of electricity in NSW by 2014, the issue between us is how you actually achieve and ensure that we have that generating capacity."

For and against

Former premier Bob Carr supports the move, and has told Channel Ten Mr Iemma will ultimately win out.

"Morris is in the right on this," he said.

Christopher Brown from the Business Alliance is also backing the Premier.

"We now need the Opposition Leader Barry O'Farrell to join him on stage," he said.

Government frontbencher Eric Roozendaal believes Mr Iemma still has the support of the majority of MPs.

"I am confident that the parliamentary party will continue to support the Premier on this important reform to ensure we have a future for power in this state," he said.

But the member for Swansea, Robert Coombes, says he does not believe the state will be in economic turmoil if it does not sell-off its electricity assets.

Mr Coombes is one of a number of MPs who indicated at the weekend's conference that they are prepared to cross the floor and vote against the Premier's plan.

He says tomorrow's Caucus meeting, which he will chair, will provide a clear indication of which way MPs will vote.

"I just don't agree with the economic analysis," he said.

"I mean, electricity returns $1.2 billion for this state each year and if we sell electricity we are going to lose that.

"This is a strong economic factor or consideration I would have thought for those people who are opposing it."

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