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Power impact report 'unconvincing'

Posted August 8, 2008 07:32:00
Updated August 8, 2008 08:08:00

Power sell-off: The report found rural areas are unlikely to suffer.

Power sell-off: The report found rural areas are unlikely to suffer. (ABC News: Gary Rivett)

The New South Wales Opposition says it is not convinced by a draft report suggesting there will be no adverse impacts on rural communities from the decision to privatise the electricity sector.

The Opposition had demanded an independently compiled Rural Community Impact Statement as one of its conditions for supporting privatisation.

The final draft, compiled by independent consultants, found the proposed changes are unlikely to impact on prices or service levels and could result in jobs growth.

But Nationals Leader Andrew Stoner says it does not talk about possible job losses in retail.

"Particularly from those smaller communities - places like Deniliquin, Hillston, Balranald - where Country Energy does have outposted retail jobs," he said.

"Had those issues been addressed, we may have said 'Yes, we're happy with the report', but the report doesn't address those issues."

Mr Stoner is also concerned by the Premier's pledge yesterday to keep open discussions with the unions.

"We've had the consultants on the Rural Community Impact Statement go away and consider a certain model," he said.

"We've had the auditor-general examine the model that's been put before him and now the Premier's saying he may change that model as a result of further dealings with the unions. He's all over the place."

Greens MP John Kaye says the report is just telling the Government what is wants to hear.

"They paid for a report that whitewashed the impact on rural communities and that is exactly what they got," he said.

Premier Morris Iemma yesterday pledged to keep negotiating with unions about electricity privatisation, with the negotiations focussing on securing jobs for workers affected by the sell-off.

Tags: business-economics-and-finance, industry, electricity-energy-and-utilities, government-and-politics, political-parties, nationals, privatisation-and-deregulation, states-and-territories, unions, rural, nsw, balranald-2715, deniliquin-2710, hillston-2675

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