The Electrical Trades Union says the State Government is planning to hand over control of the Ergon Energy Board, contrary to its promise to seek a mandate at the 2018 election before any privatisation occurs.
The union says Treasurer Tim Nicholls, speaking at Friday night’s “Strong Choices” forum in Charleville, explained how the Board of Ergon Energy could change.
As he has stated before, Mr Nicholls said the State Government was exploring options to see the private sector invest in Ergon.
However, the union says the Treasurer then said Ergon’s Board would change to have three members from the State Government, three from the private sector and one independent member.
The ETU claims the Treasurer’s intentions to change the board are a significant development.
“How is this not privatisation? What other influence will private shareholders have in our networks? Will they be able to influence operational matters? How can the quality and reliability of our power supply be guaranteed? Do we really want foreign governments, via companies like SP Ausnet, to share our profits and exert influence over an essential public service like our power supply?” the union asked rhetorically today in a media release.
Union spokesman Stuart Traill said the changes would mean the State Government would go from having 100 per cent control over Board positions to just 43 per cent.
He said the State Government would lose majority influence over important decisions on network reliability standards, infrastructure investment and staffing levels – all of which affect the price consumers pay for their electricity.
“This is the clearest indication yet that this government is preparing to relinquish control and profits of a State-owned power distribution company to the private sector,” Mr Traill said.
“This is a clear breach of promise and is a massive change since the Treasurer first raised the private equity issue back in December 2013 where he said the government would ‘sound out private sector interest in an equity stake in Ergon, Energex and Powerlink in return for paying for infrastructure upgrades’.”
Mr Traill said the Treasurer told the Courier-Mail newspaper at the time that “because we are going to maintain control … we believe we can move straight to that (without a mandate)”.
