Time for a rain check on the Snowy float
Story by Stephen Mayne of Crikey.COM
As Morris Iemma sprints towards his treasured June budget boost Advertisement courtesy of the $3 billion Snowy Hydro float, it is worth considering a few key issues that need to be resolved.
Firstly, Victorian Premier Steve Bracks no doubt remembers that Gippsland East MP Craig Ingram was one of the three independents who delivered him government in October 1999. The price of Ingram's support was a written commitment from both the Victorian and NSW Governments to increase the long-term flow down the Snowy River to 28% or 330 gigalitres.
At the time it was running at less than 1% or just 9 gigalitres, but this has now risen to 6% and all sides have agreed that a target of 21% will be reached by 2012. This means the key issue remains the compensation that will flow to a privatised Snowy Hydro in achieving that final increase from 21% to 28% after 2012.
Whilst Snowy Hydro is owned by the NSW, Victorian and Federal governments, such an increase in flows is merely another political decision, albeit one that might reduce profits and dividends returning to the government shareholders. However, once it's privatised, the profit-motivated listed company would have to seek compensation under the terms of its secret 72-year water licence which requires nothing more than 21% by 2012. Surely a publicly available water licence for no more than 25 years would be more appropriate to retain some long term flexibility for public policy planning.
Craig Ingram has every right to feel that he's being sold down the river on the long term commitment to hit a 28% flow and the Bracks Government would be wise to seek his input into the prospectus. After all, a legal challenge is the last thing the sellers would want but Ingram is clearly fired up over this issue.
Ingram received a primary vote of 24.79% in 1999 and 41.33% in 2002 and he'll get plenty of oxygen over the Snowy float to boost his chances of winning a third term at this year's poll. In fact, the new proportional representation voting system in the upper house could see Ingram back his own candidate and deliver a like-minded independent to share in the balance of power with minor parties, most probably the Greens.
Privatising sensitive assets without consulting key stakeholders is exactly the sort of thing the Kennett Government used to do. Country voters hated the arrogance, yet the most powerful political journalist in Victoria, The Age's Paul Austin, delivered this stinging critique last Friday of the Bracks Government's own Kennettesque record on parliamentary accountability.
The Sunday Age also claimed that it's actually Treasurer John Brumby who runs Victoria and he's certainly the one calling the shots on this wall of secrecy surrounding the Snowy Hydro float. Maybe it's time the Premier took an interest after his latest overseas trip and started by having a chat to Craig Ingram.
Story by Stephen Mayne of Crikey.COM
The poll SOS-NEWS conducted on our subscribers and readers choice pre the Victoria November election has been conducted, the results are as follows.