Selling Off The Nation
By Alan Ramsey = SMH
April 8, 2006
VARIOUS governments - state and federal - have sold at least $82 billion of
Australia's public assets over the past 20 years. Something like half has
gone to foreign buyers. The three most prolific sellers have been the Howard
Government, Victoria's former Kennett government and federal Labor's
deceased Keating government.
None of this is contestable. In December 1997 the Reserve Bank published the
details of the first 10 years of what is coyly called privatisation. That
is, politicians selling what the nation's taxpayers collectively own.
The Reserve Bank at the time put the value of the sell-off in the first 10
years, from 1987 to 1997, at $61.3 billion. It included the first chunk
($14.2 billion) of the Howard Government's piecemeal sale of Telstra in
1997. Since then, the second chunk ($16 billion) was sold in 1999. So, too,
was Sydney Airport (for $4.2 billion) in June 2002. Plus various smaller
plunderings. There you have your total: $82 billion.
Next, at a sharemarket near you, three governments, in collusion, are
selling their shares of Snowy Hydro Ltd, the corporatised version of what
used to be the Snowy Mountains Hydro-electric Scheme, one of this nation's
two greatest engineering achievements. No NSW government has yet been game
enough to try to flog the other, the Sydney Harbour Bridge. Give it time,
though, should Labor be in office.
Meantime, taxpayers lose Snowy Hydro.
The deal has been done. NSW's Iemma Government, with its 58 per cent share
of Snowy Hydro's ownership, is desperate to get the sale at least on the
books before the end of June. It needs $1.7 billion (hopefully) to make its
coming budget balance before next year's March election. Labor is terrified
of a bad budget figure and, thus, a possible downgrading in the state's
credit rating.
So the Snowy has to go. NSW announced its unilateral decision last December.
The Bracks Government in Victoria, with 29 per cent ownership, and the
Howard Government (13 per cent), have acquiesced, with some reluctance. So,
too, has federal Labor. It is Kim Beazley's gift to his NSW Labor mates not
to make a fuss. He needs NSW's electoral favour as much as does the besieged
Iemma Government.
Oh, how they both need it!
Yet some things have not gone as smoothly as some would like. Senator Bill
Heffernan, the Junee farmer who is one of John Howard's most vigorous pot
stirrers and news makers, was on the phone this week, his words as quotable
as ever. He is unhappy about the way some people have gone on about the
Snowy Hydro sale. He is just as unhappy about the confusion and anger among
"real" people, especially in the bush.
