Vote for proven results — NSW is on the up, up, up
AUSTRALIAN voters often complain, frequently with some justification, there are insufficient policy distinctions between the major parties. That is not the case in NSW, however. Tomorrow’s election features an enormous difference between the Coalition and Labor.
The former, led by Premier Mike Baird, has run a bold and positive re-election campaign with a remarkable initiative at its core — to place 49 per cent of the state’s electricity infrastructure in a long-term lease. The massive capital injection from this plan would run into the tens of billions of dollars, allowing NSW to reinvigorate itself across all areas of public spending, from health and education to transport and sporting venues.
By contrast, Labor’s Luke Foley has conducted an outright fear campaign, aided by self-interested and shameless power sector unions. This fear campaign would have voters believe a partially privatised electricity system would lead to untold chaos for consumers, workers and the state’s budget.
History demonstrates this is never the case. Other states — and, indeed, other nations — have successfully privatised their formerly state-owned electricity networks. Victoria under former premier Jeff Kennett was able to secure enough revenue from its privatisation to fund about three decades’ worth of essential development.
It is only in NSW, where the union culture still has far too much of a hold on public opinion, that electricity privatisation is so irrationally feared. The reason for union rejection of privatisation has nothing to do with their concern over power bills. It is everything to do with unions wanting to maintain control and to persist with absurdly inflated wage and condition demands.
Luke Foley should know better than to attempt derailing NSW’s future for the sake of his union mates. Many others within the Labor Party have backed privatisation. “I am pressing on with electricity privatisation because, as I have pointed out on numerous occasions, I think it is the best course for NSW, the people of NSW, job creation in NSW and every community throughout every nook and cranny of NSW,” said former Labor treasurer Michael Egan in 1997.
In 2008, current Labor shadow treasurer Michael Daley told NSW parliament that the state’s former auditor general had found “conclusively that electricity reforms in Victoria led to a significant price decrease in that state”. Two years later, former Labor premier Bob Carr lamented a lost privatisation opportunity. “This would have been a terrific deal for NSW taxpayers,” he said. “It would have enabled the state to exit an economic investment that was hugely risky and to retire all debt and, in addition, launch a huge program of infrastructure renewal.’’
And two years ago former Labor premier Morris Iemma pointed out the alternative to privatisation was more taxation: “There is no other way.”
As Foley tells it, the part-privatisation of our electricity network will deny a reliable revenue stream to the NSW budget. Again, this is not the case. NSW will maintain 51 per cent ownership under Baird’s proposal, meaning that the state will receive both a stunning windfall plus maintain revenue.
That revenue, of course, is in a declining pattern, which is another reason to sell now. Foley’s reliance on years of continued returns is like relying on milk to never sour.
The Labor and union fear campaigns explain why past attempts at electricity privatisation have hit the wall. Unions are so determined to maintain influence they will use every tactic to undermine privatisation bids.
Premier Mike Baird therefore deserves commendation for not only making this policy a cornerstone of his next administration but for having the guts to embrace a policy that has previously ended many political careers.
Baird is all about results rather than backroom deals and political strategies. This approach has paid off at party level, with Baird returning the Liberals to stability. It has also paid off for NSW. Look at the difference in the NSW’s economy’s strength between 2011, when the Coalition came to power, and now. Every key indicator is up, up, up.
NSW now has the fastest annual economic growth rate in the nation.
In January, NSW recorded the lowest unemployment rate in the nation. Housing construction is running at the highest levels since 1994.
NSW has all of the momentum in its favour. A multi-billion boost from an electricity sale would see NSW vault even further forward.
It can at least be said of Luke Foley that he has returned Labor to a competitive condition. This is important, because a broken opposition cannot be relied upon to provide necessary checks and balances on government.
Yet it remains a great pity that the tactics used by Foley to rebuild his party’s popularity relied so heavily on misinformation and scaremongering. If Luke Foley is to truly rebuild Labor, there must come a time when he ceases following the union line.
Until then, NSW will take the positive option. Mike Baird’s government not only deserves another term in office, NSW and the nation need the Coalition to be returned for the sake of growth, employment, education, road and rail funding, health and sport.
Only the Coalition has a plan to fund all of these areas. For Labor’s plan, just ask the unions.
