Sunday, January 06, 2008

Privatisation's poor track record

Lithgow Mercury 03 January 2008

Selling off the State’s electricity industry will serve only to raise prices and reduce services in regional and rural New South Wales, according to local government advocacy group, the Shires Association of NSW.

The warning comes as opposition grows even from within Labor ranks on the Iemma Government’s controversial plan to privatise the industry through a 99 year lease of the generators including Mt Piper and Wallerawang power stations and the sale of the retail arms that include Integral Energy.

President of the Shires Association, Cr Bruce Miller, went even further in his criticism when he warned the government to learn from past misadventures in privatisation.

“Privatisation of essential services has never achieved the promised benefits,” Cr Miller said.

“Wherever privatisation has occurred we have seen loss of jobs and increases in prices over time.”

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