Push for Tasmanian Hydro sale

Wednesday, July 30, 1997 - 10:00

Push for Tasmanian Hydro sale

By Tony Iltis

HOBART — The Tasmanian Chamber of Commerce and Industry and the Trust Bank of Tasmania have released a report supporting plans by the state government to privatise all or part of the Hydro Electricity Corporation and use the money to pay public debt and reduce taxes on business.

The transmission system is currently undergoing an upgrade costing $50 million a year for the next 10 years, which makes the system less attractive to investors. A potential buyer might well abandon the upgrade, making major power failures likely.

The distribution system has a book price of $650 million, but its market price is unlikely to be more than $350 million. The money the government receives from the sale will be quickly offset by loss of revenue.

Tasmanian households already pay far more than the national average for electricity because of subsidies given to business consumers.

For petitions or stickers opposing the sale, phone 1800 061 342.

From GLW issue 283