SP Newsletter No.200
In a betrayal of an election promise the NSW Labor government led by Morris Iemma plans to privatise the state owned electricity services. The jobs of hundreds of power workers are under threat, and all electricity consumers face higher charges and reduced services.

Iemma argues that the sell-off and leasing agreements will allow the private sector to build the new baseload generators, either gas or coal, required to meet demand by 2014. A report argues that this will save taxpayers $15 billion over the next 10 to 15 years with the sale of retail assets generating $10 billion.

These estimated savings have been calculated by well paid private consultants employed by the Iemma government. The Iemma government is planning to pay a private finance company upwards of $300 million to ‘advise’ on the sell off! But the other solution is to commit to a Government program of upgrading existing infrastructure without handing the resources to private business.

The plan to sell off NSW’s only source of electricity to the highest bidder will be devastating financially and environmentally. Environmental implications of a company operating for profit can be imagined - pollution controls cost money but a privatised electricity company will be motivated to maximise profit. The drive to maximise profits represents a clear danger to the jobs of power workers and to their and to public safety. When it comes to a choice between looking after safety or looking after shareholders private companies cannot be trusted.

Any company keen to make a big buck from buying into our state electricity services will make short term guarantees in terms of jobs and prices in order to win the bid. But in the long term these guarantees will only be worth as much as the Iemma’s government promise not to sell off the power industry at the last election! By the time power workers are being laid off and electricity consumers are being rorted Iemma and his cronies would be long gone.

To support the privatisation, the myth that private companies can run things better than the State can is being used. It’s true that if the State doesn’t spend money on necessary infrastructure and lets it resources decline then the public faces problems. But selling assets at knock down prices is not the answer. Iemma should look to the recent mess of other privatisations such the chaos of the handover of the Sydney’s Cross City Tunnel …..Or the need to buy back Port Macquarie hospital from the private sector.

There has been no consultation with any community groups or trade unions representing workers. Any debate within the Labor Party has been suppressed with no chance to debate and vote on the issue at the annual conference. The decision to sell was taken through a vote at ministerial and caucus level – an indication of the lack of democracy within the NSW Labor Party! The State electricity services belong to the whole community, not just a few grubby politicians who probably hope to join the ranks of CEOs after they ‘retire’ on full pensions.

The trade unions in NSW are organising a campaign with the first anti-privatisation rally called for Tuesday 26th February in Sydney. The rally is a good start, but needs to be the launching point for other mass local rallies and weekend rallies when the majority of workers can attend and bring families along. How to fight it was shown by electricity workers who walked off the job after a union meeting in January. To win this fight there needs to be a coordinated campaign of industrial action.

The Socialist Party demands:
-A broad based community and trade union campaign to defeat Labor’s privatisation plans
-A face-to-face all unions all delegates meeting to discuss a coordinated strategy of industrial action and mass rallies
-Call for union and community members to attend the 26th February rally in Sydney through the support of organized transport and strike action to allow workers from all over the state to attend
-No privatisation of any state owned company.

Socialist Party regional activity-

Victoria

This week the Melbourne Branch of the Socialist Party will be discussing perspectives for the trade union movement in 2008. The meeting will be held at 7pm on Wednesday February13 @ Trades Hall, corner of Lygon and Victoria Streets Carlton. All members are should try to be there.

Socialism 2008

SP will be holding our annual Socialism event on the weekend of March 14 & 15 in Melbourne. Posters and leaflets are available now. Please contact the National Office if you can help do some postering or leafleting.

Our special guest for the event will be Pakistani socialist and trade unionist, Khalid Bhatti, who will report on the situation in that country as well as talk about the Middle East and the war on terror. Book this event into your diary now it is not to be missed!

The agenda for the weekend is as follows-

Friday March 14th

7.00pm – 9.00pm – The Middle East and the War on Terror. Speaker: Khalid Bhatti (Pakistani socialist & trade unionist)

Saturday March 15th

10.00am – 11.30am – World economy on the brink! Will China save Australia? Speaker: Stephen Jolly (SP councillor)

11.45am – 1.15pm - Environmental challenges in the 21st century. Speaker: Kylie McGregor (SP)

2.00pm – 3.30pm – The future of the unions under Rudd. Speakers: Shaun Reardon (CFMEU), Dave Kerin (Union Solidarity), Anthony Main (UNITE)

3.45pm – 5.15pm – France 68: 40th anniversary of the biggest general strike ever! Speakers: Khalid Bhatti and Denise Dudley

Socialism 2008 Raffle

In order to pay for the costs of bringing over our Pakistani guest we have organised a special raffle. Tickets are $10 and the prizes are $400 first prize, $200 second prize and $100 third prize. It will be drawn on Saturday March 15 at Socialism. To purchase a ticket, or to get a book of 5 on a sale or return basis, call our National Office on 03 9639 9111.

New South Wales

To find out more about SP in Sydney contact Gary on 02 9728 7727.

To find out more about SP in Newcastle contact Samantha on 02 4968 1545.

Western Australia

To find out more about SP in Perth contact John on 08 9402 0728.

Rest of Australia

To find out more about SP anywhere else in Australia contact our National Office on 03 9639 9111.

Join the Socialist Party

If you agree with what you have read in our newsletter or on our website you should consider joining SP. The Socialist Party has branches in Melbourne, Sydney, Newcastle and Perth as well as members and supporters in all other states.

We are involved in trade union work and student work. We also run community, anti-war and environmental campaigns. But most of all we want to build a party that will fight to get rid of the capitalist system. We fight for socialism - a system that will bring an end to wars, poverty and environmental destruction. For more info contact our National Office on 03 9639 9111.

Subscribe to ‘The Socialist’ newspaper!

Become a supporter of SP by subscribing to our monthly newspaper ‘The Socialist’. It only costs $20 per year or $10 concession and you will receive our paper delivered to your door every month. You will also receive our email newsletter every week and will know that you are supporting an organisation that is at the fore of fighting against the capitalist system. To subscribe phone 03 9639 9111 or email our National Office.

The new February edition is out now! Pick it up from one of our street stalls!

News links just a click away –

Africa: Mass protests against Economic Partnership Agreement with EU
http://www.socialistworld.net/eng/2008/02/06africa.html

Italy: After Prodi, ‘Mission Impossible’!
http://www.socialistworld.net/eng/2008/02/04italya.html

Get Active - Join the fight back, Get Militant - Join the Socialist Party.

The Socialist Party is the Australian section of the Committee for a Workers’ International (CWI). To contact or join the SP or the CWI anywhere in Australia, or the world, call +61 3 9639 9111 or email our National Office.

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