Conference re-affirms the 1997 Conference decision to oppose the privatisation of state owned electricity assets. Conference rejects the current NSW government proposal to privatise the state's electricity retailers and lease the generators to the private sector.
The electricity industry belongs to the people of NSW. It is an essential service that should not be sold off to private companies. The people of NSW were led to believe the government had no plans to privatise electricity. The NSW government does not have a mandate for their proposal.
Selling and leasing the state's electricity assets will result in families paying more for their electricity and cuts to services. Jobs in the industry are at risk, particularly from companies that have a history of contracting out and off-shoring jobs. In the long run the current proposal will result in a further consolidation of the national electricity market by a few companies.
It makes little sense for the government to sell off these assets in an environment of uncertainty regarding carbon trading. The private sector will demand large discounts on the cost of the assets, undervaluing potential state proceeds. Privatisation will be bad for our environment as private companies have an incentive to sell more electricity to boost their profits.
The states retail and generation electricity businesses are important valuable assets for the state. They are a significant part of the states balance sheet and their dividends provide funding for other portfolio areas including health and education.
Conference notes the Impact Statement from the Unsworth Consultative Reference Committee and the NSW government's response to it. Whilst we welcome the efforts of the government to improve the protections for consumers, workers and the environment, the improvements do not satisfy the overall criteria in the ALP policy regarding government asset sales. In particular, the government's response does not meet the criteria because:
Ø The proposal does not guarantee any extra base load electricity;
Ø There is no way to stop market consolidation as a result of corporations buying the assets of competitors;
Ø The guarantees regarding maintenance of local and regional jobs and job numbers are not enforceable;
Ø Retail workers will not have the same employment guarantee as generation workers;
Ø There is no method of achieving greenhouse gas emission reductions from existing generators.
Accordingly Conference rejects the majority conclusions contained within the Unsworth report.
Conference recognizes that the private sector currently plays a role in the generation and retailing of electricity in NSW, and that role is likely to increase as demand grows. Conference does not accept that the private sector cannot compete with state owned companies in the market. Maintaining state ownership electricity assets ensures better outcomes for consumers, workers and the environment.
Conference notes that the government's proposal is a breach of party policy, and directs state MP's not to support the proposal. Conference further reminds all members of parliament that they have signed a pledge to uphold party policy, as determined by the ALP Conference. Therefore, all members of the State Parliamentary caucus, including all members of cabinet are reminded that they are bound by the Party Platform and policy as determined by the most recent Annual Conference.
Conference requests that the incoming Administrative Committee contacts all members of the State Parliamentary Labor Party informing them of the Conference decision in relation to privatisation and reminding them of the pledge.
