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Poles & LiarsThe real facts on the Labor/Union campaign
Authorised by Tony Nutt, 100 William Street, East Sydney NSW 2011.Printed by Bright Print, 8 - 10 Frank Street, Wetherill Park NSW 2164.
Poles & Liars‘‘Poles and Liars’ is your guide to the pack of lies Labor and the unions have been telling the people of NSW about the 49% lease of electricity networks.We expose the lies and myths for what they are – a con job perpetrated for union bosses desperate to keep control of featherbedded state-run power businesses that have hit NSW consumers with some of the highest power bills in the western world. They will even dump Rebuilding NSW – $20 billion in lease proceeds earmarked to transform hospitals, schools, transport and roads across the State – just to protect their own power. Read on if you want facts, not scares.
JOKER
JOKER
Luke FoleyChief beneficiary of the union campaign of deceit. A former union and Sussex Street boss. He and his colleague are happy to perpetuate many of these lies in their quest for power.
JOKER
JOKER
Steve ButlerBoss of the union over a 12 year period that saw consumer electricity prices increase 120 per cent. Maintaining his power depends on you paying a lot more for yours.
LABOR
LIES
LABOR
LIES
A A
Distributions – a real porkie!
LIE: Leasing poles and wires is robbing taxpayers of $1.7 billion in income per year.
FACT: Distributions forecast to FALL $3.9 billion over the next 4 years, putting a massive hole in Labor’s figures.
LABOR
LIES
LABOR
LIES
K K
LIE: Power prices will rise under private ownership.
FACT: Prices are set to fall! The national regulator sets prices and is seeking cuts from next year. Since the late 1990s, NSW power prices soared 122% under Labor. Prices in VIC and SA fell over the same period and these networks are privately owned.
Power prices - what a shocker!
LABOR
LIES
LABOR
LIES
Q Q
The magic pudding
LIE: NSW won’t get dividends from the poles and wires anymore.
FACT: The state will retain 51% of distributions and also gain $20 billion to invest in new infrastructure across the state.
LABOR
LIES
LABOR
LIES
J J
Federal Government funding
LIE: Federal infrastructure funding is not guaranteed - there is a $2 billion black hole in Mike Baird’s $20 billion infrastructure plan.
FACT: Federal Government has guaranteed funding for NSW and has already made incentive payments to the ACT.
LABOR
LIES
LABOR
LIES
10 10
LIE: Corporate greed drives up power prices.
FACT: Union feather-bedding and gold plating of the networks drove prices up 60% in 5 years under a NSW Labor Government.
Prices – more deceit
LABOR
LIES
LABOR
LIES
9 9
LIE: The ETU would never support private sector ownership.
FACT: The ETU has quietly invested $20M in super funds in privately run electricity companies in Vic, SA and the UK. Source: Daily Telegraph, 25/2/15
ETU hypocrisy laid bare
LABOR
LIES
LABOR
LIES
8 8
LIE: The poles and wires lease will cost workers’ jobs.
FACT: The unions are fighting proposed cost cuts by the national regulator which will make the networks more efficient and ultimately shed jobs.
Union demands = protection
LABOR
LIES
LABOR
LIES
7 7
LIE: Private companies will charge consumers whatever they want.
FACT: That’s illegal – prices will continue to be set by the independent national regulator.
Regulation – conveniently overlooked…
LABOR
LIES
LABOR
LIES
6 6
LIE: Lease is a weasel word for sale.
FACT: 100% of the network assets will remain owned by the state and a 49% interest will be leased.
Sale or lease?
LABOR
LIES
LABOR
LIES
5 5
LIE: ETU wants you to pay lower power bills.
FACT: The unions say they want cheaper power bills for all consumers, but their excessive wage demands and inefficient work practices drive huge price rises.
The ETU is looking after your hip pockettheir
LABOR
LIES
LABOR
LIES
4 4
LIE: We’re selling the farm.
FACT: The State is maintaining 100% ownership of the network and leasing a 49% interest.
Selling the farm – really? That old chestnut
LABOR
LIES
LABOR
LIES
3 3
LIE: Private operators risk safety and reliability.
FACT: Network safety and reliability is enshrined in the law whether the network is operated by the State or the private sector.
Labor on reliability: - that’s ironic!
LABOR
LIES
LABOR
LIES
2 2
It’s OK to lieLuke Foley explains to Peter Overton that lies are fine in union ads that benefit Labor:
Overton: Why though is the advertising that you are running untruthful?
Foley: Elections are hard fought… I think Pete you’re referring to union ads.
Overton: Yes I am.
Foley: Labor’s not the author of those ads.
Channel 9 News, 3/3/15
A A
SUPPORTERS
SUPPORTERS
Labor s PrivatisationA proud tradition
Bob Hawke and Paul Keating – sold Qantas.
Bob Carr, Michael Egan, Morris Iemma & Michael Costa – all tried to sell NSW electricity assets.
Barrie Unsworth – recommended selling the NSW electricity assets.
Nathan Rees – proposed Parklea Prison sale.
Kristina Keneally – sold NSW Lotteries, electricity generator trading rights, retailers and WSN environmental solutions.
K K
SUPPORTERS
SUPPORTERS
Labor supporter #1:Paul Keating
“I support the Premier’s view about [the 49% lease]… There are still some obscurantists in the Labor Party.” November 2014
Q Q
SUPPORTERS
SUPPORTERS
Labor supporter #2:Kristina Keneally
“Today here, right now, we can make a decision to secure the State’s energy supply... to do any less is to fail those people who look to Labor for support.”
2008 ALP State Conference
J J SUPPORTERS
SUPPORTERS
Labor supporter #3:Bob Carr
“This would have been a terrific deal for NSW taxpayers. It would have enabled the state to exit an economic investment that was hugely risky and to retire all debt and, in addition, launch a huge program of infrastructure renewal.” Aug 2010
10 10
SUPPORTERS
SUPPORTERS
Labor supporter #4:Michael Costa
“Mike Baird’s proposal for a partial privatisation is moderate, sensible and the right thing to do. It’s time for sectional interests…to put aside their disregard for the broader community and support the Premier in delivering quality infrastructure to NSW.” June 2014
9 9 SUPPORTERS
SUPPORTERS
Labor supporter #5:Vic Premier Daniel Andrews
Described asset recycling to pay for new infrastructure as “first rate policy”. Nov 2014
8 8 SUPPORTERS
SUPPORTERS
Labor supporter #6: Morris Iemma
“The alternatives (to asset recycling) are taxation. Given the state government’s revenue base, it’s either through increased taxation or you can embark on public-private partnerships. There is no other way.” Feb 2015
7 7 SUPPORTERS
SUPPORTERS
Labor supporter #7: Martin Ferguson
“As a former federal minister for energy, as a former union official — and as a long-serving member of the Australian Labor Party — I am proud to stand before you today to lend my strong support to the restructure and sale of the NSW and Queensland electricity grids.” Nov 2014
6 6 SUPPORTERS
SUPPORTERS
Labor supporter #8: Matt Thistlethwaite
He told The Monthly in his Senate inquiry: “overinvestment in the poles and wires and that led to dramatic profits for those businesses ... paid for by consumers through their electricity bills”.” July 2014
5 5 SUPPORTERS
SUPPORTERS
Labor supporter #9 Michael Daley
Shadow Treasurer Michael Daley told Parliament that the State’s former Auditor General had found “conclusively that the electricity reforms in Victoria led to a significant price decrease in that state”. Feb 2008
Whoops!
4 4 SUPPORTERS
SUPPORTERS
“Using proceeds from the lease of the metropolitan ‘poles and wires’ is the preferred method for funding essential transport, health and other infrastructure projects.” Feb 2015
Labor supporter #10 David Borger
3 3 SUPPORTERS
SUPPORTERS
“Transport, health, public security: all of these matters are ones which in my view have greater priority than who delivers electricity through your meter… the problem we’ve got is that we’ve got some Luddites here in NSW that can’t comprehend that.” July 2008
Labor supporter #11 Barrie Unsworth
2 2 SUPPORTERS
SUPPORTERS
“I am pressing on with electricity privatisation because, as I have pointed out on numerous occasions, I think it is the best course for NSW, the people of NSW, job creation in NSW and every community throughout every nook and cranny of NSW.” Nov 1997
Labor supporter #12Michael Egan
A A TRUTH
TELLERS
TRUTH
TELLERS
The Sydney Morning Herald
“The Herald has supported the poles and wires leasing plan, and welcomes the Liberals’ promises to improve infrastructure with the proceeds.”
Editorial, 18/2/15
K K TRUTH
TELLERS
TRUTH
TELLERS
“This [lease] should amount to a $20 billion payday for NSW... This sudden increase in state funding will cascade through NSW, allowing the state to build a massive investment and infrastructure platform that will promote future economic growth.”
Editorial, 11/6/14
Q Q
TRUTH
TELLERS
TRUTH
TELLERS
The Australian
“The ETU wants to keep poles and wires in state ownership because that way its members enjoy a featherbedded workplace while consumers pay the price through higher power bills.”
Editorial, 25/2/15
J J TRUTH
TELLERS
TRUTH
TELLERS
“Mr Baird is fighting hypocritical Labor scaremongering over his plan to sell government-owned electricity transmission and distribution networks and recycle the returns into road and rail infrastructure”
Editorial, 02/02/15
10 10
TRUTH
TELLERS
TRUTH
TELLERS
UnitingCare
The SMH reports a UnitingCare study shows “Electricity network service providers in Queensland have the highest charges in Australia, while Victoria is the lowest cost jurisdiction in the National Electricity Market.” 10/2/15
9 9 TRUTH
TELLERS
TRUTH
TELLERS
Ernst and Young Report
“…since privatisation of the electricity networks in Victoria and South Australia, network prices for typical residential customers in those States have fallen in real terms. In contrast, network prices for typical residential customers in NSW and Queensland, where electricity network service providers are government-owned… prices have increased in real terms by over 100%”.
Network Pricing Trends, Queensland Perspective EY Report, 20/1/15
8 8 TRUTH
TELLERS
TRUTH
TELLERS
“Based on the Victorian experience – which over a long period of time appears to have delivered a safe, reliable and lower cost network – we are supportive of others heading in the same direction.”
Peter Dobney, GM resources and energy, Orora. AFR 5/3/15
Packaging Manufacturer Orora
7 7 TRUTH
TELLERS
TRUTH
TELLERS
Former IPART Chair Dr Tom Parry
“Greater inefficiency; higher operating costs; and much greater levels of capital spend in the government-owned electricity network businesses are facts... A quick and easy solution is privatisation. The facts speak for themselves.”
16/2/15
6 6 TRUTH
TELLERS
TRUTH
TELLERS
ACCC Chair Rod Sims
“If the private sector owns (electricity networks), it will run them more efficiently and therefore prices in NSW will be lower in future if they are privately owned.”
At the Committee for Economic Development of Australia, 19/2/15
5 5 TRUTH
TELLERS
TRUTH
TELLERS
Paul Kelly“The scare campaign will be ferocious. Conducted in the name of the people, the real purpose is to retain union privileges and de facto management control of state enterprise. Labor today is a party of formidable election technique and obsolete policy prejudices. But the stakes for NSW and the nation are immense.”
The Australian 25/2/15
4 4 TRUTH
TELLERS
TRUTH
TELLERS
Business Council of Australia
“The people of NSW are set to gain substantially from the government’s plans to privatise its energy assets and reinvest the proceeds in new infrastructure.”
Jennifer Westacott, Daily Telegraph 20/2/15
3 3 TRUTH
TELLERS
TRUTH
TELLERS
Energy Supply Association of Australia
“On the best available evidence to date, private networks are delivering the same service at a lower cost than state-run counterparts.”
AFR, 10/2/15
2 2 TRUTH
TELLERS
TRUTH
TELLERS
Productivity Commission
“The rationale for state-ownership of electricity network businesses no longer holds… the evidence suggests that such private sector enterprises are more efficient.”
Productivity Commission report on Electricity Network Regulation, Apr 2013
A A
REBUILDING
NS
W
REBUILDING
NS
WRebuilding NSW
Leasing the poles and wires will unlock $20 billion for the NSW Government’s infrastructure plan, Rebuilding NSW, and turbocharge the economy.
K K
REBUILDING
NS
W
REBUILDING
NS
WSydney Rapid Transit
A $7 billion plan to cut crowding on trains and platforms and boost network capacity across the network by 60%.
Q Q
REBUILDING
NS
W
REBUILDING
NS
W
WestConnex
An additional $1.1 billion to invest in the northern and southern extensions to WestConnex along with the Western Harbour Tunnel cutting congestion and travel times.
J J REBUILDING
NS
W
REBUILDING
NS
W
Job creation
Leasing poles and wires will unlock $20 billion to built transformative infrastructure and generate over 100,000 jobs over the next 20 years.
10 10
REBUILDING
NS
W
REBUILDING
NS
W
Leasing poles and wires will unlock $20 billion to build transformative infrastructure boosting the economy by almost $300 billion in just over 20 years.
Turbo charging the economy
9 9 REBUILDING
NS
W
REBUILDING
NS
W
Regional tourism
$300 million for regional tourism and the environment.
8 8 REBUILDING
NS
W
REBUILDING
NS
W
Water
Rebuild NSW delivers $1 billion for regional water security.
7 7 REBUILDING
NS
W
REBUILDING
NS
W
Parramatta plan
A fully funded plan for new transport, smart jobs and cultural precinct for Sydney’s second CBD.
6 6 REBUILDING
NS
W
REBUILDING
NS
W
More for regions
Another $4.1 billion for investment in regional roads and rail will underpin economic growth across the whole State.
5 5 REBUILDING
NS
W
REBUILDING
NS
W
More for sport
Rebuild NSW provides $600M to modernise key stadiums stadiums where we love to watch our favourite sport.
4 4 REBUILDING
NS
W
REBUILDING
NS
W
More for schools
Rebuild NSW will deliver $1 billion for much needed funds for regional and metropolitan schools.
3 3 REBUILDING
NS
W
REBUILDING
NS
W
More for hospitals
Rebuild NSW deivers an extra $1 billion for regional and metropolitan hospitals.
2 2 REBUILDING
NS
W
REBUILDING
NS
W
More for the arts
$600M funding injection for the arts in NSW.
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