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Queensland forced to amend asset sales after public outcry
Queensland could lease out electricity network for 99 years
(35 minutes later)
Public opposition has forced the Queensland government to revise its asset sales plan, with the treasurer suggesting a new emphasis on long-term leases.
Queensland could lease its entire electricity network for up to 99 years to pay down state debt.
The LNP government has carried out a broad public consultation program about its plan to sell or lease public assets if it wins the next election.
The Newman government wants to sell or lease most state assets under its plan to deal with $80bn in debt it says Labor lumped on the state.
Treasurer Tim Nicholls on Wednesday revealed the feedback had forced a rethink of the plan, with the government now looking more and more towards leases rather than sales.
Treasurer Tim Nicholls says public feedback on the plan indicates a strong preference for 50 or 99-year leases.
He told a business forum that Queenslanders seem to prefer long-term leases.
“Certainly leasing is something that I’ve favoured for a long time, and certainly that seems to be something that is very popular with Queenslanders,” he told a business breakfast in Brisbane on Wednesday.
“We’ve always said there were a range of opportunities,” Nicholls said on Wednesday.
The Liberal National party government had been open to selling off power generators, but said it wanted to keep control of transmission and distribution lines.
“But in listening to what Queenslanders have to say we are reformulating our draft plan.
Nicholls’ announcement paves the way for the government to lease the entire power network – from generators to poles and wires – to investors for up to 99 years.
“Our final plan will address these issues, and leasing is certainly an option that is very much supported by the feedback we’ve received.”
He insisted Queenslanders would retain underlying ownership because it was a lease, not a sale.
The state government is pursuing a privatisation agenda to address $80bn of debt it says Labor lumped on the state.
But the opposition leader, Annastacia Palaszczuk, said a long-term lease was the same as a sale and it would push power prices up to “nightmare” levels for families.
Its plan was to privatise some ports and power stations after the next election.
The union-backed Not4Sale campaign said leasing the power network would drive up prices and cut jobs, and could lead to an eventual foreign takeover.
Nicholls told the business breakfast in Brisbane on Wednesday the government had already looked at leasing out some ports, and that option might now also apply to power stations and the state’s power distribution assets, or the poles and wires.
Last week the Newman government changed the laws to deregulate the retail power sectors from July next year.
Nicholls maintained that the government had been completely up-front with Queenslanders about plans for electricity transmission assets.
“What we are saying is that the potential for a lease around the poles and wires, that will ensure Queenslanders do retain the underlying ownership in the long term,” the treasurer told reporters in Brisbane.
“Certainly leasing is something that I’ve favoured for a long time and certainly that seems to be something that is very popular with Queenslanders.”
The government had previously said it would not sell or give up state control of the distribution network.
Shadow Treasurer Curtis Pitt said the government had responded to public feedback on the Queensland Plan by putting forward its own plan for asset sales.
“By trying to use the Queensland Plan to justify plans for asset sales, the Newman government is tainting what it has always claimed was a non-political process to develop a 30-year vision for our state,” he said in a statement.
“Its response shows the LNP will stop at nothing to push its asset sales agenda.
“It once again proves the decision to sell assets has already been taken by the Newman government despite its claim that it will seek a mandate from voters at the next election.”
