Electricity Industry Reform

Mr DAVID HARRIS: I direct my question to the Premier. Will the Premier update the House on the Government's plans for electricity reform?

Mr NATHAN REES: I thank the member for his question and interest in this most important matter. Two and a half years into the term of this Parliament and the Opposition does not have anything resembling an energy plan—

The SPEAKER: Order! I call the member for Terrigal to order for the second time.

Mr NATHAN REES: —that most essential of services: a network of electricity supply for the people of New South Wales to enable their lights to go on, to enable their houses to be heated, to enable our hospitals to work, to enable our children to be educated and to enable our trains to run.

The SPEAKER: Order! I call the member for Tweed to order.

Mr NATHAN REES: Two and a half years into this term of Parliament and the Opposition has no plan to provide energy to the people of New South Wales—not a hint. It is all part of the Opposition's shameless plan to try to win government by doing absolutely nothing. In contrast, on this side of the House we are encouraging investment, we are looking after families and we are assuring the State's future energy supplies. In short, we have a plan—a comprehensive plan—to redesign the electricity market. Our plan rests on two foundations: keeping vital assets in public hands and, at the same time, attracting new entrants who will bring additional resources and competition to the energy sector. Today the Government is proud to release the final strategy paper on the energy reform transactions. It is a comprehensive blueprint resulting from extensive market testing, vigorous policy analysis and development, and expert advice—concepts entirely foreign to the Opposition.

One policy platform is the delivery of at least one new entrant into the national electricity market. We will have a new generation trading company to bring the benefits of competition to New South Wales consumers and New South Wales businesses. We will do this through a dual track process involving a trade sale, which will commence with expressions of interest later this month, and a potential share market float of selected assets. Preparations for an initial public offering—a float—will commence immediately. However, a decision on a float will be made only after the initial trade sale offers have been assessed against our competition and valuation objectives. In other words, the Government will not rush in on any offer that is put on the table; it will push for the best outcome for the people of New South Wales. Our retail businesses, development sites and generation trading rights are sizeable and attractive assets. They are assets that the people of New South Wales rightly expect will be traded prudently and carefully.

The SPEAKER: Order! The member for Clarence will come to order.

Mr NATHAN REES: That is why over the past few months the Government has undertaken detailed discussions with key groups, including integrated utility companies, private equity houses and many others. All of their feedback has been strong and encouraging. The Government and its financial advisers are therefore confident of a successful process and one that maximises the outcome for the people of New South Wales. I contrast that with the Coalition's bungled sale of the State Bank, which netted the New South Wales taxpayers next to nothing.

Ms Gladys Berejiklian: That is rubbish!

Mr NATHAN REES: No, it is not; it is a fact. If the member does not like that example, I remind her of Port Macquarie hospital, which was paid for twice by the taxpayers of New South Wales. It was handed to the private operator and bought back by the Government for $80 million. That money could have built a new hospital somewhere else in regional New South Wales. Unlike the Opposition, the Government will get this right and the benefits will flow to the taxpayers of New South Wales because the value we unlock will be reinvested in vital public infrastructure.

It is also important to stress that we have undertaken detailed discussions with staff, consumer groups and unions. They can be assured that the Government's fundamental protections will remain in place: public ownership of the poles, wires and generators; protection of employee entitlements; consumer safeguards, including regulation by the Independent Pricing and Regulatory Tribunal until 2013; and a $272 million package to assist those less well-off to manage their electricity bills.

These reforms are probably the largest energy transactions occurring anywhere in the world. This is bold microeconomic reform in true Labor tradition: getting the big settings right, but never forgetting our obligation to serve the common good. Today New South Wales stands ready to embark on one of the biggest energy reforms implemented in 25 years. These reforms are as significant in their own way as Neville Wran's massive expansion of the sector in the early 1980s and McKell's electrification of rural New South Wales in the 1940s. This is reform with equity and it is good public policy. It is another contrast with the performance of members opposite. They are utterly without a plan or a clue. I commend these reforms to the House.