ALP members campaign against privatisation

Within the NSW ALP branch members are starting to organise under the banner of Labor Against Power Privatisation.

They are organising meetings of ALP members and currently have a write a letter to Morris campaign.

Here is the text of their draft letter which is a response to a pro-privatisation letter from the Premier which the ALP sent to its members. The draft is designed for ALP members and branches, but feel free to adapt the useful bits for your own letters:-

The Hon. Morris Iemma
Premier
Level 40, Governor Macquarie Tower
1 Farrer Place
SYDNEY NSW 2000

Dear Morris,

RE: Securing Electricity Supply While Keeping Generators, The Distribution & Transmission Network In Public Hands

I am responding to your undated letter with the above title that was received by all NSW ALP members in late 2007.

I seek to inform you that I am opposed to any privatisation of the NSW electricity system, and believe that it should remain as a public service rather than a private company whose main interest is profit. I also support upholding NSW Labor Policy and believe that any change in policy needs to happen consistent with the democratic process outlined in the Party Rules.

I share your concern about the future challenges facing the NSW electricity supply, but I believe that your plan will raise more problems that it attempts to solve.

Specifically, your plan will put at risk:

Consumer Protection and Affordable Electricity - The experience of Victoria and South Australia was that prices rose dramatically after the interim price regulation expired. Following power privatisation in South Australia prices went up by 30%. In Victoria prices have just risen by 17% starting 1 January 2008. And this excludes any Enron-style manipulation of the power industry. With inflexible demand for power, and limited suppliers, it is clear that this pattern will happen in NSW as soon as the 5 year price guarantees in your plan expire.

Job Security and Rights at Work - Experience in other states and overseas has shown substantial jobs cuts occurred after privatisation. Many of these occurred as a result of outsourcing to countries with significantly inferior pay and working conditions. For example, TruEnergy shipped offshore 500 jobs after they bought into the Victorian power industry.

Service levels, especially for country NSW - In Victoria frequency of blackouts increased by 32% between 1995 and 1999 after power privatisation. In the United States job cuts of 150,000 nationwide led to maintenance cuts and then blackouts in New York, Chicago, New Jersey, New England region, and Texas.

Serious action to address climate change - Mandatory renewable energy targets means the power industry must increase its investment on green energy. It is likely that a profit-driven private energy company will underinvest in cleaner energy sources unless they have to. Public ownership gives NSW the chance to meet and exceed those targets by applying energy industry dividends for cleaning up the industry, as public opinion clearly desires. There is no rationale in your plan that explains how privatisation will mean greater investment in cleaner energy than through public ownership.

Whilst we understand that your plan includes a number of regulations and guarantees, they all expire within 5 years. Furthermore, once privatisation has occurred the energy companies will have considerable political and economic power to ensure they can either undermine or restrict any regulation of the industry.

What concerns me most as a Party member is the failure to follow Party policy and process, as evidenced by the NSW Government ads promoting the sale. Before any final decision, this matter needs to be determined at the 2008 Annual Conference, as mandated by party Policy. Furthermore, there should be greater and more transparent consultation process with branches and SEC's prior to Conference.

I urge you to follow the wishes of the loyal party members who worked so hard to re-elect a NSW Labor Government, and stop this plan to sell an essential public asset.

Yours sincerely,

Name:
Branch:
ALP Membership No: