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THE jobs of at least 130 workers in the Lake Macquarie electorate would be at risk if the state government's planned privatisation of the state's electricity poles and wires goes ahead, Shadow Minister for Energy Adam Searle said during a visit to Toronto this week.
Mr Searle's comments added to the debate about Premier Mike Baird's proposal to lease 49 per cent of the state's poles and wires to the private sector if the Liberals are re-elected.
Mr Searle said the NSW government's proposal to privatise state-owned companies TransGrid and Ausgrid would have a detrimental impact on the region's economy.
"The experience in other states with privatisation has shown the first thing that happens is massive job losses," he said. "In Victoria, I think it was up to about 80 per cent of employees lost their jobs.
"If you look at those 130 workers [in Lake Macquarie], by my estimate, at least $10 million to $13 million in wages alone will come out of this local economy."
Premier Mike Baird said the proposed lease of the poles and wires would give the NSW government a $20 billion war chest to put towards roads, hospitals, schools and other infrastructure.
Mr Searle said the plan would generate only $13 billion. He said Mr Baird would put that $13 billion in the bank for 10 years to generate $5 billion in interest, while $2 billion would come from the federal government's Asset Recycling Fund.
Mr Searle said NSW currently reaps $1.7 billion annually from TransGrid and Ausgrid. The $13 billion that Mr Baird speaks about in his plan could be realised in "another six or seven years" if the government maintained the status quo. Voters should consider how the Liberals propose to replace the $1.7 billion annual return from the companies.
"Are they going to raise taxes or are they going to cut services? The answer is probably a bit of both, " Mr Searle said.
Jobs boost
CENTRAL Coast NSW Business Chamber has backed Mr Baird’s privatisation plan.
The government’s Rebuilding NSW: State Infrastructure Strategy confirms regional NSW would receive a fair share of the proceeds of the proposed lease, chamber regional manager Daniel Farmer said.
“Using the proceeds of the proposed poles and wires lease to fund essential transport, health and education projects across the state will boost jobs and growth opportunities, particularly on the Central Coast, where significant investment in infrastructure is long overdue.”
He said leasing the state’s electricity assets is the best way to accelerate delivery of essential infrastructure without risking the budget bottom line.
Already stretched
LABOR candidate for Lake Macquarie, Melissa Cleary, said the proposed privatisation of the poles and wires would raise electricity bills because it is a monopolised industry.
‘‘Households are already stretched in terms of energy prices,’’ Ms Cleary said.
‘‘Once we sell it off to a private provider, whose main goal is to make a profitable return, of course the prices are going to go up.
‘‘We’re not going to get another set of poles and wires built – once the electricity network is gone, it is gone for good.’’
Premier Mike Baird said electricity prices would come down under his plan.