Energy Privatisation: Heading in the WRONG Direction
By Ben Kruse
USU General Secretary
Jun 18, 2007
Privatisation of the energy industry threatens thousands of jobs across
New South Wales. Despite assurances before the State election that
privatisation was not on the agenda, the State Government has
established the Owen Inquiry in an effort to justify a sell off to the
private sector. The first round of cuts are directed at selling the
retail divisions of the energy distributors Country Energy, Energy
Australia and Integral Energy. Less public infrastructure: Increased prices “This is an outrageous attack on public services and infrastructure,” said USU General Secretary Ben Kruse. “This will hand the energy bills of millions of NSW taxpayers over to the private sector where profit rather than service will become the primary motivator. Consumers are already seeing massive increases in energy prices, handing the supply of electricity over to the corporate sector will only make matters worse for working families.”
We need safe and secure services The sell off will see a decline in service standards as the affected employees in call centres, customer service, billing and administration are the first point of contact in the case of emergencies and customer enquiries. “During the recent floods our members took hundreds of thousands of calls assisting households to have their services reconnected,” said Ben Kruse. “Electricity supply is an essential service, we can’t rely on the perils of the market economy when it comes to this.
Jobs in regional NSW Hardest hit are employees based in outer metropolitan and regional areas where secure employment with state owned corporations forms part of the backbone of the local community.
The figures are staggering:
• Hunter district (Energy Australia, Wallsend) 250 jobs • Mid North Coast (Country Energy, Pt Macquarie) 150 jobs • Southern Region (Country Energy, Queanbeyan) 300 jobs • Central West (Country Energy, Bathurst) 200 jobs • Western Sydney (Integral Energy, Huntingwood) 500 jobs • Sydney Central (Energy Australia) 500 jobs
Thin edge of the wedge Selling off the customer client base is only the beginning. Partial privatisation will undermine the economic viability of the remaining asset base of the state owned energy distributors.
Hogg Report
In 1997 the Hogg Report rejected part-privatisation of Pacific Power on
economic grounds, acknowledging that the sale would result in the loss
of some 4000 jobs.
“This is just the first slice off the salami,” said USU General Secretary Ben Kruse. “Should the privatisation agenda extend to building privately owned generators big business will gain a stranglehold on the market” “Then we’ll see the wholesale sell off of our state owned energy infrastructure”.
Private operators will have no interest in building excess capacity to meet future energy needs. Privatisation will also diminish Government’s ability to implement an industry wide response to climate change.
OffShoring in Victoria Private company TRUenergy is now in the process of offshoring 200 customer contact centre jobs overseas to India. Australian employees have been told they will lose redundancy entitlements. Those fortunate enough to keep their jobs are being forced onto individual contracts with the loss of pay and conditions.
“Privatisation opens a Pandora’s box of social, economic and environmental issues, it will be a disaster for employees, communities and for working families” said Ben Kruse.
Heading in the Wrong Direction Tour
The USU is taking the anti-privatisation campaign to workplaces in regional New South Wales. Come to along and express your view - send a clear message to the Iemma Government that Privatisation will not be tolerated.
Heading In The Wrong Direction Tour Dates:
27 June 2007, 12.30 pm Bathurst Country Energy Regional Office
3 July 2007, 12.30 pm Wallsend EnergyAustralia Office Building
4 July 2007, 12.30 pm Port Macquarie Country Energy Regional Office
18 July 2007, 12.30 pm Queanbeyan Country Energy Regional Office
19 July 2007, 12.00 noon Huntingwood Integral Energy Head Office
These are the first round of meetings and more will be scheduled for large sites, organiser will be attending smaller sites to discuss this issue and gain your support to fight against Privatisation.
To become more involved in the USU campaign or to become a member and help protect the industry and the jobs of those employed within it, call the USU Information Centre on 1300 136 604 visit our website at www.usu.org.au or email us at campaign.savenswpowerindustry@usu.org.au
Contact: Scott McNamara
USU Manager Energy
(02) 9265 8211
