A NSW parliamentary committee will today kick off an inquiry into the state government’s controversial electricity sell-off.
This is in defiance of NSW Premier Kristina Keneally, who dissolved the state’s 54th parliament yesterday.
NSW Opposition Leader Barry O’Farrell said Ms Keneally’s decision to advise Governor Marie Bashir to prorogue parliament weeks earlier than had been expected was designed to forestall the inquiry. It is expected to call former board members of state-owned electricity generation companies as witnesses.
The committee chairman, Christian Democrat Fred Nile, said yesterday that Treasurer Eric Roozendaal told him this week he did not want the inquiry held, and a former board member told The Australian he was willing to tell the committee why the deal was a dud.
Eight of 13 directors of Delta Electricity and Eraring Energy quit over the $5.3 billion deal stitched up last week between Mr Roozendaal, Origin Energy and TRUenergy, believing that the output of their generators was undervalued. Mr Roozendaal responded by overriding their concerns and appointing new directors from the sale transaction team within NSW Treasury to complete the transaction.
Ms Keneally last night released legal advice from the Crown Solicitor that the upper house standing committee “cannot function while the house of parliament which created it, and to which it is responsible and accountable, stands prorogued”.
But Mr Nile will press ahead today, after getting contrary advice from upper house clerk Lynn Lovelock.
Ms Lovelock told The Australian: “The committee has the authority to meet and conduct the inquiry.”
However, she expressed reservations about whether the committee would be well advised to “press ahead” if witnesses felt their protection under normal parliamentary privilege might be compromised.
Parliament was prorogued on January 15 before the 2007 election and January 31 before the 2003 election; NSW has fixed four-year terms and elections are held in late March.
One former electricity board member, who did not wish to be named, said he thought witnesses were keen to tell their side of the story. “The government doesn’t want to have the inquiry because no positive evidence exists for Roozendaal’s claims this is a great deal for taxpayers,” he said.
“The guys (Mr Roozendaal and his advisers) just had deal fever. They had to nail the deal, and it didn’t matter what the price was.”
He said board members felt pressured when they arrived at their final meeting to consider the sale, last week, and found notices on the table saying Mr Roozendaal planned to hold a media conference to announce the sale later that morning.
Under the deal, Origin Energy will pay $3.25bn for retailers Country Energy and Integral Energy, along with the trading rights to the output of Eraring, one of Australia’s largest power stations.
The other auction winner, China-owned TRUenergy, has agreed to pay $2.1bn for the EnergyAustralia retail business, along with the Delta West trading rights.
Mr Nile said Mr Roozendaal had phoned him on Tuesday from the US, where he is on an official visit.
“He obviously doesn’t want an inquiry to be held,” Mr Nile said.
“He doesn’t feel it’s necessary and he’s fearful it may jeopardise the sale process.”
Today’s meeting is expected to set terms of reference for the committee of inquiry. The three Labor members will relay Ms Keneally’s advice that the inquiry is unconstitutional.
Source: www.theaustralian.com.au
Imre Salusinszky, NSW political reporter
