Budget blowout panic based on inflated power shortage scare

Commenting on a story in today's Sydney Morning Herald ('Shortfall in power could be overstated' page 8) Dr Kaye said: "Reality is rapidly overtaking the myth that the lights will go out in NSW without either electricity privatisation or massive public sector investment in new  conventional power stations.

"Recently announced plans for a 600 MW power station to be built by Loran Energy Products near Sutton Forest puts yet another nail in the coffin of the fable that the private sector will not build baseload generators while the electricity industry is publicly owned.

"Taken together with the other non-government power stations, the need for new investment in baseload capacity if it ever existed has now evaporated. 

"Former Treasurer Micheal Costa has left behind a state of panic over the debt.

"Premier Nathan Rees and his Treasurer Eric Roosendaal can no longer rely on the findings of the Owen Inquiry. It now has no credibility and its conclusion that the state faces a shortage of power should be ditched.

"Instead of lining up to slash spending on important new transport, health and education projects, the Rees administration should commission a new, independent review of the state's power needs.

"This time Treasury should not be allowed to call the shots.

"It would be a tragedy if Michael Costa's legacy of exaggerated and inflated estimates of investment needs in traditional baseload power was allowed to panic his successor into a massive slash and burn of much needed new infrastructure projects," Dr Kaye said.


For more information:    John Kaye 0407 195 455