The New South Wales (NSW) state election is heating up, with politicians from the incumbent government and the opposition party butting heads over the privatisation of state-owned assets.
On March 9, NSW Treasurer Matt Kean rebutted Labor’s allegations that the state’s residents had to bear higher energy costs due to the privatisation of electricity distribution company Ausgrid and Endeavour Energy, which is responsible for operating the NSW electricity network.
Citing data from the Australian Energy Regulator, the minister said residential network charges fell from $973 in 2014-2015 to $722 in 2022-2023.
“Network charges have fallen by 26 percent for the average household and 49 percent for the average small business since the long-term lease of Ausgrid and Endeavour,” he said.
“(Labor leader) Chris Minns has been lying to the people of NSW, and now his grubby scare campaign that asset recycling raises customer bills is taking on water when you look at the cold hard facts.”
After coming to power, the Coalition government carried out the plan and leased out 50.4 percent of Ausgrid in 2016 and 50.4 percent of Endeavour Energy in 2017 for 99 years each.
Opposition’s Response
Opposition Energy Spokesman Jihad Dib said the figures did not represent the real picture and that the treasurer ignored rising energy prices as well as further forecast increases in 2024.“Matt Kean must live in a parallel universe if he’s trying to convince people that energy prices have gone down,” Dib said.
“He can use whatever spin he likes, but the fact of the matter is, people are paying more since privatisation.”
In addition, Dib alleged that the Coalition government was preparing to privatise Essential Energy, a state-owned energy infrastructure company.
NSW Premier Says No to Further Privatisation
The debates come after NSW Premier Dominic Perrottet announced in late February that his government would stop privatising public assets if it were re-elected.“What I have said is we have an economic plan. We have a sustainable and manageable debt position here in New South Wales because of our management over our time in office.”
The announcement was a reverse of the premier’s previous standing on the issue several weeks earlier, where he did not rule out privatisation as a solution to funding major infrastructure projects in the state.
For instance, at the beginning of the state election, the premier left the door open to the plan to sell Sydney Water, a state-owned corporation responsible for providing potable drinking water, wastewater and some stormwater services, to get extra funding.
“Progress wasn’t made by taking things off the table,” he said during a debate with Opposition leader Chris Minns in February.
“Money doesn’t grow on trees. You’ve got to make the tough decisions.”