What Australian newspapers say, Tuesday December 11, 2007

AAP General News (Australia)
12-11-2007
What Australian newspapers say, Tuesday December 11, 2007

SYDNEY, Dec 11 AAP - NSW Premier Morris Iemma yesterday unveiled an electricity sell-off
plan that will provide much-needed funds for infrastructure and remove a big and growing
contingent liability from the public sector balance sheet, The Australian says in its
editorial today.

Workers have been offered either a one-off payment of 30 weeks' salary to transfer
to the private sector or a guaranteed job in the distribution business if they wish to
continue on the public payroll. For consumers, price controls will remain on electricity
until at least 2013.

The Australian says these safeguards will lessen the price NSW can expect to receive.

"Certainly, NSW and Queensland, which sold its electricity retail companies for $3
billion earlier this year, cannot expect to get the windfall prices received by former
Victorian premier Jeff Kennett, who led the way and used the proceeds of electricity privatisation
to rebuild that states shattered economy in the 1990s.

"They missed a golden opportunity in not immediately following Victoria's lead."

The Sydney Morning Herald says Mr Iemma's decision to sell off retail electricity operations
and to lease power stations to private operators is not ideal, but given union and caucus
opposition even to this compromise, it is probably the best taxpayers can expect from
this government.

More troubling are the so-called transfer payments of $40,000 on average to the state's
1700 power workers to buy their support, or at least their silence, for being moved out
of public-sector jobs.

Consumers do not have anything like the unions' clout, so for them, bribes take the
form of promises, the newspaper says. The sale proceeds will fund new infrastructure for
water, transport and health services, the government says. Privatisation will also ensure
electricity prices rise by less than they would have without it.

"Well, perhaps. This government's record on infrastructure development is littered
with promises broken. And, like John Howard's promises about interest rates, the latter
claim is entirely unprovable."

Sydney's The Daily Telegraph says Mr Iemma's successful caucus campaign to win approval
for the sale of the state's power retailers gives his government something positive to
talk about.

Selling three retailers and leasing existing power stations will save taxpayers about
$15 billion over 10 to 15 years; money to develop a "metro rail system" and infrastructure
and energy projects.

While no sale price has been agreed, $15 billion over 10 years is significantly different
to the same sum over 15 years.

And how will the saving be achieved? There's the $8 billion construction cost of a
new base load generator, to be borne by the private sector, which leaves another $7 billion
in savings by other means. How, where?

Then there is the strategic issue of the relationship between the new owners and the
government and the new owners and IPART, the agency which will oversee retail electricity
prices until 2013.

Hopefully, the government will resolve those questions to maximise the potential sale
price of these most important state assets.

The Australian Financial Review says the partial privatisation of the state's electricity
assets is set to be botched because the bizarre measures to which Mr Iemma has agreed
in order to appease the unions will reduce the price buyers will be willing to pay.

The incentives offered to entice public-sector retail and generation workers to cross
to private employment -- up to 30 weeks' pay for six years of service or more, as well
as employment guarantees -- will also come straight off the price, the newspaper says,
as will maintaining strict price regulation.

Prime minister Kevin Rudd should tick off Mr Iemma when the Council of Australian Governments
meets next week, if he is serious about reviving the institution.

Melbourne's Herald Sun says Sunday's fiery freeway crash that killed four teenagers
proves the young are not bulletproof.

Their lives ended in the burnt-out car wreck. "The line between youthful high spirits
and suicidal recklessness was smashed at 160km/h," the newspaper says.

"These were supposed to be the best years of their lives and the casual way they squandered
them was not unique."

People in their late teens to mid 20s have probably always partied the hardest, but
the risks in life for them have never been greater.

The Herald Sun says: "Actions have consequences, even for young people living in the
certain belief they are bulletproof."

Melbourne's The Age says consumer watchdogs will soon have the tools to fight price-fixers
in a range of industries when the federal government amends the Trade Practices Act to
make those guilty of collusion and price-fixing subject to criminal penalties.

The newspaper says: "While there has been much outcry and many accusations over the
years at the possible collusion of oil companies in fixing the price of fuel, (which the
companies deny), the steps necessary for policing and prosecuting cases have been sadly
lacking from the armoury of government and regulatory authorities."

The government will also appoint an independent petrol commissioner, but although it
will not lead to relief at the bowser this Christmas, "motorists may take comfort in knowing
the government is tackling the issue", The Age says.

"A free and fair market depends for its operation on trust. Consumers need to know
that in taking part in a business transaction they are not being ripped off."

Brisbane's The Courier-Mail says a ruling that the "appropriate" sentences for nine
young men who gang-raped a 10-year-old girl in an Aboriginal community on Cape York do
not include jail time has sparked community outrage and alarm.

The 28-day appeal period passed before Attorney-General Kerry Shine learned of the case.

The state opposition has argued the appeals process should be a last resort.

Three cases come to mind. Four teenagers who tortured and humiliated a disabled boy
get probation orders. A teacher who sexually assaulted female students in his care will
serve only 12 months' jail. A 35-year-old who molested an eight-year-old girl received
a jail term structured so he will not to be deported later.

Each case has a unique set of circumstances, but if extenuating circumstances influence
judges' sentencing decisions, they must be fully explained. Mr Shine's duty is to ensure
this terrible case is never repeated.

AAP jrd/rs

KEYWORD: EDITORIALS

2007 AAP Information Services Pty Limited (AAP) or its Licensors.