NSW: Opposition releases power sell off plan

AAP General News (Australia)
02-14-1999
NSW: Opposition releases power sell off plan

SYDNEY, Feb 14 AAP - Every household in New South Wales would be offered $1,000 cash or
$1,100 in electricity shares under a state coalition plan to sell off the power industry.

The massive payout costing $2.6 billion is the cornerstone of the coalition's plan to win
over an electorate nervous about the benefits of privatisation.

The $25 billion power sell off would be the largest ever privatisation in Australia.

Deputy Opposition Leader Ron Phillips also said today the coalition would immediately
legislate to cut the average household power bill by $100 a year for the next three years if
it won the March 27 election.

Mr Phillips said the coalition expected to raise $25 billion from the sell off, $18.6
billion of which would be used to wipe out state debt.

Aside from the $2.6 billion pay out, another $2.6 billion will go to a millennium fund to
pay for infrastructure projects across NSW, $600 million would be used to pay for the scheme's
lower power bills, $600 million would be used to pay for redundancy packages and work
guarantees for power workers.

There would also be a $60 million rural infrastructure fund and a $100 million
environmental fund.

Under the plan, the electricity transmission company Transgrid and electricity generators,
which operate the power stations, would be sold off by trade sale.

The electricity distributors, which sell power to households, would be sold by a mixture of
public float and trade sale.

The exception would be EnergyAustralia which would be sold entirely by public float,
expected to raise $7.5 billion.

It would be from this sale that every residential electricity account holder in the state
would be offered $1,100 in shares which they could immediately cash in for $1,000.

A poll in today's Sun Herald newspaper found 63 per cent of voters were against plans to
sell off the power industry.

AAP ns/sb/gl/br

KEYWORD: POLLNSW POWER

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