Election 2015: Queensland to sell Power Network

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Is the LNP going to sell the Power Network in Queensland.

The Queensland government plans to raise $28 billion through a long-term lease of its electricity transmission networks, buoying Treasurer Joe Hockey’s plan to drive economic growth through the sale of state infrastructure.

Facing a lack of interest from ðinvestors, the Newman government on Wednesday dumped a plan to allow the private sector to take a minority equity stake in the state’s power networks in return for dividends but not control.

Financial Review Sept 2014

As revealed in The Weekend Australian, Mr Ferguson (Australian Labor Party) said a new energy white paper would urge all states to privatise to encourage competition.

That was in September 2014.

The last time there was a problem with selling of Queenslands Assets was when the QLD Labor government wanted to sell them entirely.

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Unions attack Labor over call for electricity sell-off
August 13, 2012 at www.theaustralian.com.au

The last Labor State government in Queensland was swept from office in 2012 after it privatised more than $14 billion worth of State Assets.

The current LNP government wishes to only LEASE about 12 per cent of the States assets for a guaranteed income and retained FULL ownership again after the 99 year lease term expires, or of course, resell the leases again.

What happens to Jobs?

Will the employees stay with these organisations, but under private control ? It would not be logical to terminate all employees and have these businesses without experienced staff. Some may lose their jobs under privatisation, as private companies, unlike the public service, seem more likely to keep employees based on their ability.

Union Statement:

The ETU (Electrical Trade Union) State Secretary Peter Simpson has stated that “the Queensland LNP is set to privatise our entire electricity network, including Poles and Wires businesses Energex, Ergon and Powerlink via long term leases of up to 99 years, despite consistently stating it would not touch the poles and wires.” www.etu.org.au

LNP Policy:

The LNP plan includes leasing some assets that will provide funding to;

Reduce the State debt by $25 billion taking it from $80 billion to a manageable $55 billion, with annual interest payments reduced by $1.3 billion.
Establish a $8.6 billion Strong Choices Future Investment Program dedicated to supporting infrastructure and projects vital to economic growth, jobs and vibrancy of regional communities.
$3.4 billion in a dedicated fund to relieve the cost electricity for Queensland families & businesses.
Create 33,600 new jobs.

The Newman LNP Government if re-elected will be offering some assets for lease.
It is anticipated that the lease arrangements will generate $37 billion. $25 billion will be used to pay down Labor’s $80 billion debt, $8.6 billion will be allocated to the Strong Choices Future Investment Program and $3.4 billion for the Strong Choices Cost of living fund.
The decision to set aside $3.4 billion in a cost of living fund, recognises the Government’s ongoing commitment to combat cost of living pressures


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