Labor is pushing back against the potential sale of TasNetworks, pointing to the electricity network’s significant contribution to Tasmania’s budget as the government reviews which public assets could be privatised.
The state-owned company is expected to deliver $361.6 million in dividends and tax equivalents over the forward estimates, making it one of the top revenue earners among government businesses flagged for possible sale.
Shadow Treasurer Josh Willie says that income stream highlighted in the budget papers is too valuable to give up, especially as Tasmania’s debt continues to climb from zero in 2014 to more than $10 billion today.
“The long-term value of our government businesses to the budget’s bottom line shouldn’t be sacrificed for a short-term sugar hit,” he said.
TasNetworks alone accounts for nearly 60% of the $620 million in combined revenue that would be lost if four of the state-owned businesses under review were sold off.
The Motor Accidents Insurance Board would lose another $180.4 million over the same period, with TasPorts and Aurora Energy contributing $47.6 million and $29.5 million respectively.
Hydro Tasmania, which is not being considered for sale, is on track to alone deliver $539.7 million in the same timeframe.
Labor says this revenue is critical for funding essential services like schools and hospitals and that keeping these assets in public hands is in the broader public interest.
Energy Minister Nick Duigan has confirmed a full review is underway and that TasNetworks is part of it.
“We’re going through a process of work to understand which of our government business enterprises are best held in government hands and which other ones provide opportunities to serve the people of Tasmania potentially in private hands,” he said.
Willie said privatisation results in higher consumer costs and reduced service quality and that the state government will have to look to other MPs for support.
“We don’t support privatisation and we will fight tooth and nail against this agenda that will be brought to parliament this year. It’s the wrong approach,” he said.
