Michael Costa

NSW Greens Media Release: 26 July 2008

It's time for NSW Premier Morris Iemma to admit that the Rudd government's emissions trading scheme combined with widespread community opposition has fatally damaged his plans to privatise the state's electricity industry, according to Greens NSW MP John Kaye.

Commenting on a story on page 8 of today's Australian ('Iemma admits to sell-off doubt'), Dr Kaye said: "Morris Iemma is causing havoc in NSW's power industry in a futile attempt to position it for a sell-off that is increasingly unlikely to receive parliamentary approval.

"Pushing administrative staff out of state-owned retailer Integral Energy into generator Eraring could prove to be an expensive and disruptive political stunt.

"Given yesterday's report that 25 percent of the nation's coal-fired power generators will be forced out of business by the Commonwealth government's emissions trading scheme, NSW Coalition leader Barry O'Farrell will have little choice but to oppose the sell-off legislation when it come to parliament in late September.

"The news will have caused the sale value of NSW's three generator companies to have plummeted.

"Neither government nor Opposition can pretend that there is any financial benefit in the privatisation.

"Meanwhile, voters are increasingly focused on reducing greenhouse gas emissions and controlling rising household electricity bills.

"On both counts, the sell-off is bad deal.

"The political window of opportunity for the privatisation is slamming shut.

"The Premier should listen to his backbenchers, put his Treasurer Michael Costa on a tighter leash and abandon the power sell-off," Dr Kaye said.

For more information: John Kaye 0407 195 455

See also: ABC gives free kick to Iemma, NSW electricity privatisation of 21 Jul 08.

Media Release: 7 July 2008

NSW Treasurer Michael Costa's misleading attack on climate change reviewer Professor Ross Garnaut's emissions trading proposal is a last-ditch attempt to rescue the Iemma government's electricity privatisation push, according to Greens NSW MP John Kaye.

Commenting on an opinion piece by the Mr Costa in today's Australian ("Garnaut Report a first step that falls short"), Dr Kaye said: "The Treasurer is working hard to undermine Professor Garnaut's argument for not compensating the electricity generators for the costs of the proposed emissions trading scheme.

"Michael Costa is threatening the nation with blackouts and economic chaos if the generators are not given at least 30 percent of their permits for free.

"The only blackout will be the Treasurer's career if the loss of power station profitability undermines his attempted privatisation.

"Professor Garnaut has nailed yet another nail in the coffin of the Iemma government's power sell-off. Investors would not want to buy power stations that have to fork out billions of dollars each year for permits.

"Mr Costa wants the people of NSW to have no faith in the ability of the national electricity market to maintain capacity to meet demand.

"The Treasurer's tirade ignores the effects of rising wholesale electricity prices on encouraging other lower carbon sources to be developed and operate.

"It is ironic to watch a leading neo-liberal economic ideologue like Michael Costa argue that markets do not work.

"In desperation, the Treasurer also argues that the power stations have property right to pollute the atmosphere.

"Australian society has never accepted the right of corporations to do harm just because they have done so in the past. As Professor Garnaut pointed out, this nation reduced the profitability of tobacco companies and asbestos mines without compensation.

"It is time for Premier Iemma to reign in his Treasurer before he does yet more damage to the government's credibility," Dr Kaye said.

For more information: John Kaye 0407 195 455

John Kaye
Greens member of the NSW Parliament
phone: (02) 9230 2668
fax: (02) 9230 2586
mobile: 0407 195 455
john.kaye[AT]parliament nsw gov au www.johnkaye.org.au

NSW Greens Media Release: 3 June 2008

Original media release from greens.org.au/media/releases

NSW Treasurer Michael Costa's budget to be delivered this afternoon proves that the electricity industry sell-off is unnecessary and bad for the economy, according to Greens NSW MP John Kaye.

Commenting on the pre-release announcement of a $58 billion spend on infrastructure, Dr Kaye said: "The Iemma government's budget is based on the sensible idea that borrowing for infrastructure is a healthy investment in the state's future.

"It is time for the same logic to be applied to the electricity industry

"Treasurer Costa has belatedly joined the big borrowers brigade, recognising that the state needs to invest in transport, health and education to secure the economic future of NSW.

"Exactly the same argument can be applied to the state's energy system.

"Borrowing for investment in new clean energy supply capacity would not only help the state cope with increasing pressure on greenhouse gas emissions.

"It would also earn a healthy return, which would pay off the debt.

"There would be no effect on the state's credit rating.

"If Treasurer Costa could see beyond his ideological commitment to privatisation, he would understand that maintaining public ownership of the electricity industry would help ease the debt burden.

"The generators and retailers currently put $1.1 billion to the state's budget each year.

"That's a very healthy return on assets that are probably worth less than $7 billion on the open market," Dr Kaye said.

For more information: John Kaye 0407 195 455