Ernst and Young, leading consultants to the Queensland government have released a report claiming that electricity costs would be lower under privatisation. Although the report was commissioned by private infrastructure lobby group Infrastructure Partners Australia, it's just a rehash of the same line EY have been pushing for years in similar reports commissioned by pro-privatisation governments. The central claim is that electricity prices have risen more in Queensland and NSW, under corporatisation than in Victoria and SA, under privatisation. What they don't tell you is that this merely offsets increases imposed in the leadup to privatisation, with the result that retail prices are much the same in all four states, and far higher than when the process of market reform (supposedly to reduce prices through competition) began in the 1990s.
The report by past Federal Treasurer Peter Costello of his supposedly independent investigation into Queensland State finances on behalf of the Queensland Government Commission of Audit recommended the full privatisation of Queensland Government's electricity generators. Only last year, the Queensland public, outraged at the asset fire sale embarked upon by former Premier Anna Bligh without any electoral mandate whatsoever from the 2009 state elections, savagely punished Labor at the ballot box leaving only 7 sitting Labor members in a house of 89.
That, less than a year after, the new Government of Campbell Newman has contrived an excuse to continue with policies, that have been so resoundingly repudiated by Queenslanders, provoked outrage. An example of the outrage felt is a new opinion poll taken by news.com, which shows that Qld privatisation [is] opposed by 85%: poll.
Professor John Quiggin of the University of Queensland responded on 6 March with a post on his web site. That post included a link to a pdf report which, by examining the disastrous history of privatisation across Australia in recent decades, comprehensively demolishes the case for any privatisation.
Updates, 2 May 10: Branch secretary claims ETU misrepresented by article and my #appendix2">response and a further response by Tony Reeves;
Grounds are that the government failed to inform people during the last Queensland State elections of their intentions to privatise Queensland assets to the value of $15billion.