Arrogance Of A Dictator We Elected To Office
Snowy sale for future survival: NSW
May 21, 2006 - 10:34AM
The sale of the Snowy Hydro scheme is about growth and survival, not the
financial state of the NSW, Victorian or federal governments, says NSW
Treasurer John Della Bosca.
Speaking ahead of the Snowy float which begins officially on Monday, Mr
Della Bosca denied the sale flew in the face of Labor's position on
privatisation, or that it was a strategic pre-election move.
"This had nothing to do with the fiscal situation of the NSW government or
the other two governments, the commonwealth and Victoria," Mr Della Bosca
told ABC TV's Inside Business.
"This is all about the future of Snowy Hydro.
"The timing of this decision is related to the fact that Snowy Hydro needs
to start planning its capital expansion into the national electricity market
right now."
The NSW government stands to pocket between $1.5 billion and $2 billion from
the sale, which opens this week for investor pre-registration.
NSW taxpayers hold 58 per cent of the shares in the scheme.
Mr Della Bosca said the Snowy was "unique" among Australia's public assets,
and denied it opened the way for privatisation of the rest of the NSW
electricity industry.
"The Iemma government's position on electricity generation in the Australia,
the New South Wales state-owned corporations and generators is completely
clear and unchanged," Mr Della Bosca said.
"(Snowy's) economic function is completely different to the base load
generated stations that operate in the NSW public sector.
"It's completely different in its governing structure because no one
government owns the company."
Corporatisation agreements making NSW the regulator of water within the
Snowy system were "set in concrete" and would remain unchanged, he said.
Natural flows would be restored to the target of 21 per cent over the next
few years.
Better consultative mechanisms over the timing of the release of flows to
irrigators are being put in place, he said.
Mr Della Bosca would not be drawn on whether Snowy company shareholders
would be taking a special dividend prior to the sale, saying it was a matter
for the shareholding ministers.
"What we'll be making sure of is that Snowy is in the best health possible
when it's floated," he said.
