Kennett continues sell-off of gas

By Ben Reid

MELBOURNE -- The state Coalition government is continuing its privatisation of gas services despite mounting concern from consumer and trade union groups.

On March 10, the government announced that it expected to receive offers totalling $4 billion for the two remaining gas retail firms yet to be privatised. The sell-off is part of a phased privatisation that will put the entire Victorian gas industry in private hands by 2001.

Concern has risen as the commission of inquiry into the August 1998 Longford gas explosion has exposed the bad practices of the Esso-operated plant. Evidence suggests that profit-motivated cost-cutting of maintenance and safety was the cause of the disaster.

The government's announcement of its expected returns coincided with the release of a report by the Financial and Consumer Rights Council damning the practices of private retailers.

The report studied 215 cases. In 47%, retailers had demanded impossible levels of debt repayment from consumers who had not paid bills.

Report author Bev Klinger, in the Consumer Rights Journal, stated, “Evidence is mounting ... that the [privatisation] process has had a negative effect on low-income households to access essential utilities”.

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