The Iemma Government has ignored any form of strategic investment in carbon reduction technologies for its electricity generators over the past few years – despite taking billions in dividends and taxes, Shadow Minister for Energy Mike Baird said today.

“For each of the past three years the NSW Government has withdrawn around $1 billion in dividends and taxes from the State’s generators and retailers, yet it has not allocated one cent to developing carbon reduction technologies,” Mr Baird said. 

“This Budget oversight has eroded the value of the State’s electricity assets and it is one of the issues the Auditor-General will need to examine in his review of the sale.

“It is extraordinary that while the Government was seizing the dividends from the generators they were neglecting to provide the necessary funds to invest in carbon reduction technologies.

“In the United States, greenhouse gas emissions from its generators fell by 54 million metric tonnes one year after ‘scrubbers’ were installed* – and yet the Iemma Government has failed to adopt similar technology in NSW.

“Any prudent manager would ensure that its companies’ assets were ready to deal with competitive threats and in relation to the carbon trading scheme this has been coming for a decade.

“The Iemma Government’s short-term approach to the energy sector is now likely to cost the taxpayers billions if the power sale proceeds.

“The question must be asked – how long has the Government had their privatisation plans on the agenda and yet not told the public? 

“Clearly avoiding significant capital expenditure would suggest that Morris Iemma and Michael Costa have had their privatisation plan underway for years.

“If this is denied then the Premier and Treasurer must explain why they have neglected to fund any investment in carbon reduction technologies for the generators, which will now cost NSW taxpayers billions of dollars if the assets are sold in the current state.”

MEDIA: Lisa Harrington – 0406 726 880

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