NSW: Workers on snap strike, as NSW power blame game continues

AAP General News (Australia)
08-29-2008
NSW: Workers on snap strike, as NSW power blame game continues

By Nick Ralston and Eoin Blackwell

SYDNEY, Aug 29 AAP - Electricity workers have called a snap strike, walking off the
job as the NSW government sought to patch up a multi-billion dollar black-hole created
by the failure of its original power-sell off plan.

The United Services Union (USU) said at least 1,500 workers in both the retail and
generation arms of the sector were on strike until Monday.

Call centres dealing with billing and general enquires will be unattended over the
weekend, and workers are due to meet again on Tuesday morning to decide what, if any,
further action to take.

The snap strike came almost 24 hours after Premier Morris Iemma announced he would
sell-off the state's three electricity retailers - Energy Australia, Integral Energy and
Country Energy.

Unlike his original proposal, which was rejected by some ALP MPs and the opposition,
the new plan will see power generators remain in state hands.

The move also does not require the approval of parliament.

USU general secretary Ben Kruse said power workers were furious the government was
still selling the retailers despite the privatisation issue facing defeat in parliament.

He said he had now written to the opposition, cross benches and some ALP members urging
them to recall parliament to pass legislation prohibiting any sell-off without the permission
of the parliament.

"The government has no respect for the workers, the community or the parliamentary
process," Mr Kruse said.

But Unions NSW boss John Robertson today was describing the NSW government's back down
on the sale of the generators as a victory for the workers and general community.

Mr Iemma claimed the amended privatisation proposal was one that the unions had agreed
to during negotiations over the original proposal.

The premier said that under the new sell-off plan, no jobs would be lost in the retail sector.

He also continued his attack on Opposition Leader Barry O'Farrell, over his refusal
to back the original sell-off plan, which would have netted about $10 billion for the
state.

"This is not the preferred strategy, but it is the best option to get around the 'do
nothing' approach of the opposition," the premier said.

In comparison, the sale of the retailers is expected to net about $3 billion, although
up to $12 billion must be spent on retrofitting the generators now they will remain in
NSW hands.

Credit ratings agency Standard & Poors put the NSW government on credit watch when
the original sell-off stumbled in parliament.

It has warned the state's AAA credit rating could be downgraded if the government does
not re-prioritise its capital works program.

Mr Iemma and Treasurer Michael Costa, who has declared he won't contest the next state
election, have already announced that will occur in a mini-budget to be held within the
next 10 weeks.

Opposition finance spokesman Mike Baird told Network Ten that having the state on credit
watch had already put a $20 million increase on the government's $42 billion debt.

But Mr O'Farrell told parliament the credit watch resulted from the government's inability
to manage the state efficiently.

"It's all about excuses for past inaction, excuses for past neglect, excuses for past
mismanagement," he said.

"And an excuse that when we had record revenues, instead of investing them in necessary
infrastructure, they failed to do so."

However, private sector interest in the state's power sell-off remains, with Energy
giant AGL saying it will still pursue a stake in the market.

The electricity debate caused farcical heated scenes in question time, as both sides
sought to attribute blame for the failure of the original electricity reform package.

Nationals Leader Andrew Stoner was ejected for constant interruptions but he claimed
he was simply picked on by Speaker Richard Torbay.

AAP nr/hn/tnf

KEYWORD: ELECTRICITY NIGHTLEAD

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