Leasing Queensland assets rather than selling would be trickery, unions say
Unions have described as "trickery" an apparent Queensland Government change of heart on asset sales that could see power distribution and transmission networks leased out long-term.
In the June budget, the Government flagged private investment inErgon and Energex distribution networks and Powerlink's transmission infrastructure, the so-called poles and wires, to raise $28 billion.
Investors would have been offered a share of revenue in the distributors if they undertook $9.8 billion of infrastructure upgrades.
However, Treasurer Tim Nicholls today said that feedback showed long-term leasing was more palatable for Queenslanders and would instead consider leases ranging from 50 to 99 years.
"People are more comfortable with the idea of a lease than they have been with the idea of the hybrid instrument," he said.
"In listening to what Queenslanders say, we are reformulating our draft plan and our final plan will address these issues and leasing is very much supported from the feedback we've received.
"It is certainly something that can be considered for the transmission and distribution networks and the power generators as well.
"We are reshaping that draft plan. In the next couple of weeks, we'll finalise the plan that we will take to the election, and it will be different to the draft plan."
Also in the June budget, the Government said it would consider selling or 99-year leases for electricity generators CS Energy and Stanwell and the Gladstone and Townsville ports.
Mr Nicholls said today the option is now more likely to be a lease.
Leasing 'poles and wires' extends privatisation: unions
About $33.6 billion is planed to be raised from the lease, sale or equity deals, with $25 billion of the money raised to pay down debt.
Queensland Council of Unions president John Battams said the announcement today would extend the privatisation process.
He said unions were opposed to leasing "poles and wires".
"This could be in fact an extension of the privatisation process if, in fact, the leasing option includes all of the assets and not just some," he said.
"They think that through the trickery for leasing for 99 years, rather than selling, somehow this will mitigate against people's views, and we don't think that will happen."
Opposition Leader Annastacia Palaszczuk said power prices could rise if the electricity network is leased.
"This is a massive sale," she said.
"Now the poles and wires are going to be transferred, sold off to the highest bidder.
"Families are going to be hit hard by rising electricity bills, this is yet again another broken promise from the Newman Government."
But Premier Campbell Newman said electricity prices should not be affected by leasing the power distribution network.
"Not at all — the electricity industry is heavily regulated in Australia and frankly it will continue to be strongly regulated," he said.
"Whether it's currently owned in the way that it is or if it's leased out or sold, it will still be strongly regulated."
Mr Newman said he had always had concerns about asset sales but there were benefits to leasing.
"We're listening to people and people are saying that a lease is good because ultimately it comes back to our children or our grandchildren - it's not sold, it's only leased," he said.
"We know that if we lease our home, ultimately we get it back.
"I think that's a really good way of looking at this going forward."
Chamber of Commerce Queensland (CCIQ) says the State Government could keep some control over public assets if they were leased and not sold.
CCIQ spokesman Nick Behrens said that might be easier to explain to voters.
"The capacity of the State Government to influence a leasing arrangement is more significant," he said.
"Through a leasing arrangement, [the Government] can put in place some conditions that would address some of the community concerns about prices and services."
