Former Premier Criticises Labor’s Push for Public Ownership of Victoria’s Power Network

Former Victorian Premier Jeff Kennett talks during a press conference in Melbourne, Australia, on Nov. 26, 2020. Graham Denholm/Getty Images

Victorian Premier Daniel Andrews has called out the former Liberal government’s privatisation of the energy grid in Victoria as the Labor government heads toward the election with a promise to renew the public ownership of part of the Australian state’s power network.

On Oct. 20, the premier said his Labor government would spend $1 billion (US$628 million) to revive the State Electricity Commission (SEC), which was privatised under the Kennett government in the 1990s, if it won the state election in November.

Under the new plan, the state government will take a 51 percent stake in the SEC, and the remaining 49 percent will be designated for superannuation funds.

The SEC will be directed to spend the $1 billion fund on building renewable energy projects to provide 4.5 gigawatts of power aimed at replacing the closure of the Loy Yang coal-fired power plant in the region.

Former Premier’s Criticism

In a series of social media posts, Jeff Kennett, who was the 43rd Premier of Victoria between 1992 and 1999, said Andrews was sending the state broke and now targeted superannuation funds.

“Every major (government) project is late on delivery and grossly over cost. Now he wants to raid your savings. This must be stopped,” Kennett posted on Twitter.

In addition, the former premier defended his government’s record of privatisation, which he said was to solve the mounting debt left by the previous Labor Cain/Kirner government.

“We returned Victoria to surplus budgets after two years and reduced your debt from $33bn to $5bn and improved all services,” he wrote.

In an interview with the Australian Financial Review, Kennett said Andrews would put the state into a poor financial position.

“The state is heading towards $200 billion of debt, and the interest payments on that debt are going to be much higher,” he said.

“Just the last few weeks, he has been spending like a drunken sailor, with billions on new hospitals and infrastructure projects while people are dying because the existing system is broken.

“It will take years–decades–to repay all the spending; we will be crippled with debt and repayments. It just shows how irresponsible he is prepared to be.”

Andrews’ Response

During his speech to announce $35 million in extra funding for children’s cancer research on Oct. 23, the premier called Kennett’s comments “hysterical abuse” and criticised his privatisation policies.

“It was a mistake to sell our energy companies ... privatisation has failed,” he told reporters.

“These coal-fired power stations have made $23 billion out of all of us. That’s what these private companies have made over that period since Mr Kennett sold off our electricity assets to the highest bidder.”

A general view of the Loy Yang power plants in Traralgon, Australia, on Aug. 17, 2022. Asanka Ratnayake/Getty Images

At the same time, Andrews touted the SEC project, saying it was a positive, optimistic agenda for the future.

“The SEC is coming back, and it’s going to be better than ever. It’s going to be 100 percent renewable, it’s going to put downward pressure on bills, it’s going to cut emissions, and it’s going to create 60,000 jobs,” he said.

Meanwhile, as the state election draws near, the Coalition has promised to abolish seven taxes under its long-term economic plan, including a levy on taxi and rideshare fares.

“It’s only a dollar, but it makes a big difference to many Victorians who are getting rideshare to and from work each week,” Opposition Leader Matthew Guy said.

Daniel Y. Teng contributes to this article.