Tasmanian Labor is pushing to introduce new laws that would require parliamentary approval before any sale of Aurora Energy can go ahead.
Opposition leader Dean Winter said the state government is eyeing off the privatisation of the state-owned energy retailer as a way to plug holes in the budget.
“Jeremy Rockliff has broken Tasmania’s budget. He’s built up on a pathway now to $10 billion worth of net debt and now he’s seeking to sell Tasmania’s assets to pay it down,” Winter said.
The proposed legislation would overturn provisions from 2012 that currently allow the government to sell Aurora without parliamentary scrutiny.
Winter’s announcement follows previous reports that an unnamed energy company has shown interest in buying both Aurora Energy and Momentum Energy.
The government has confirmed it’s considering selling off some of its state-owned businesses, with all but Hydro Tasmania said to be off the table.
Aurora Energy employs approximately 300 Tasmanians, with Winter emphasising that “unlike other energy retailers, all those jobs are here in Tasmania” and that privatisation would risk these positions moving offshore.
“When you privatise assets, prices go up, jobs go offshore and we start having real problems with the budget. It means that dividends don’t flow back into the government that otherwise would,” he said.
Samantha Batchelor, Tasmanian Coordinator for the Australian Services Union (ASU), threw her support behind Labor’s push, saying vulnerable customers and workers could be left worse off.
“Aurora ensures that vulnerable Tasmanians have access to energy connection. Other for-profit focused providers simply won’t provide the service and will cut people off who rely on these connections,” Batchelor said.
“Whether it be that they can’t pay their bills or whether it be that they’re relying on life support, Aurora are there when they need it.”
The ASU says the threat of privatisation comes at a critical time, as the union is currently locked in negotiations over pay and conditions for Aurora workers.
“These workers have the bare bone minimum legal redundancy protections and the consequences of a sale would be dire,” Batchelor warned.
Minister Felix Ellis said the government is identifying “opportunities that privatisation might hold” in a “methodical and reasonable” way.
“We want to ensure that our government business enterprises are delivering the best possible services for Tasmanians and taking a close look at that is the right way to go,” he said.
“[Labor is] effectively bringing legislation to get rid of legislation that they brought in when they were last in government.”
