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Power privatisation won't hurt rural communities: report

Posted August 12, 2008 09:10:00

A rural community impact statement on the New South Wales Government's plans to privatise the state's electricity sector has found the proposal will not be detrimental to rural communities.

Legislation for the privatisation was introduced early in June, and then delayed a few weeks later.

Broken Hill union members have condemned the privatisation from the start, saying it will mean higher costs and substandard services, especially in regional areas.

But Premier Morris Iemma says the impact statement shows rural and regional communities will benefit from stimulated investment in new power stations and job guarantees made to existing generation and retail employees.

The Premier also says selling off ownership of the electricity businesses and leasing assets in the competitive sector will not prevent the state from ensuring a reliable and competitively priced power supply for regional users.

Union representatives say they are still studying the report.

Tags: electricity-energy-and-utilities, privatisation-and-deregulation, states-and-territories, broken-hill-2880

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