ABC Finance
NSW Coalition reticent on privatisation
Monday May 5, 06:12 PM
The New South Wales privatisation debate has the potential to split not only Labor but also the Coalition.
The State Opposition has come under increasing pressure to detail where it stands, as Premier Morris Iemma prepares for a showdown in caucus tomorrow over his decision to press ahead with privatisation.
Caucus has twice voted to support privatisation, but a sizeable number of backbenchers are seeking another vote in light of the state Labor conference's outright rejection of the plan.
The conference voted 702 to 107 against selling the state's electricity retailers and leasing its power generators.
Mr Iemma has been working the phones, telling backbenchers any motion on power in caucus amounts to a referendum on his leadership.
His Cabinet is already locked in but the unions are exerting pressure too, with a veiled threat to MPs from Unions NSW secretary John Robertson that their preselection could be on the line.
"These MPs need to consider two things - firstly, the decision of the conference over the weekend and they also need to consider the interests of the constituents they were elected to represent," he said.
The Liberals are playing a game of wait and see, steering clear of a commitment to privatise. Opposition Leader Barry O'Farrell says he wants more detail.
"We're not here in the business of knock-down sales..." he said.
"I can make an in-principle decision to catch a train home this evening but unless I know which way the train's going, it may not be worth my while."
But Nationals Leader Andrew Stoner is echoing union concerns about jobs and electricity prices.
"I represent a low-income area and they're very worried that there aren't any guarantees about the future impacts on prices," he said.
Kennett backs Iemma
Some Liberals have not been so shy as Mr O'Farrell. Former Victorian premier Jeff Kennett is urging Mr Iemma to face down the unions.
"NSW is very quickly becoming a backwater," he told ABC Radio's The World Today program.
"If you're going to be continually controlled by the archaic groupings of people in this case called unions, then your state is going to shrink.
"Bob Carr started it, Iemma to his credit is trying to break it but it might come at the cost of his own job, which would be a pity because right now NSW needs some tough leadership."
Former NSW premier Bob Carr also urged Mr Iemma to resist union pressure yesterday.
Next Article: TD Securities gauge indicates rising inflation
Previous article: State Government reveals Gunns' risk deal
Top Headlines
GuocoLeisure annual profit boosted
Tuesday September 2, 07:43 PM - NZPA
GuocoLeisure, formerly BIL International, saw its annual net profit more than quadruple to $US56.7 million ($NZ82. .. Read More
Marlin Global to sell shares in US company
Tuesday September 2, 07:17 PM - NZPA
International-focused investment fund Marlin Global is selling its stake into the takeover of an American pharmaceutical busi .. Read More
NZX signs deal to underwrite Besa capital raising.
Tuesday September 2, 06:55 PM - NZPA
Exchange operator NZX has signed a deal to underwrite the Bond Exchange of South Africa's (Besa) 80 million rand ($NZ15 m .. Read More
Calculators
Copyright © 2009 Yahoo! All rights reserved.
Yahoo!Xtra: A Yahoo!7/Telecom New Zealand Company.