Recent opinion polls show there is widespread opposition in NSW to the Coalition government's plans to privatise remaining public assets.
Polling by UMR Research, reported by the Australian Financial Review on May 1, shows a majority of people are against proposed sell-offs announced recently by Premier Mike Baird.
It found 61% of respondents opposed the privatisation of the state's electricity poles and wires, while only 23% supported the idea. An even bigger 73% are against any sell-off of NSW public hospitals, with just 18% in support.
Baird, who became premier last month after the resignation of Barry O'Farrell, led a push which resulted in a national deal signed with federal Treasurer Joe Hockey in late March. Under this deal, state governments can sell public assets to the corporate sector and will be given a 15% “bonus” by the federal government if they invest the money in new infrastructure projects.
This supposed "recycling of infrastructure" is overwhelmingly based on privatisation of key assets to build new motorways, in private public partnerships with big business.
The AFR said: "NSW Premier Mike Baird will push to privatise the state's $25 billion electricity grid after reaping a hefty $1.75 billion from the sale of the Port of Newcastle, most of which will be invested back into infrastructure."
Newcastle is the world's largest coal port, handling 40% of Australia's coal exports.
The Newcastle port has been leased for 98 years by a consortium comprising Hastings Funds Management and a Chinese state-owned corporation, China Merchants. This follows the $5.1 billion gained from the sales of Port Kembla and Port Botany last year.
The Port of Newcastle sale brings the total amount of funds in the state government's infrastructure fund, Restart NSW, to more than $6 billion. Much of this has already been allocated, mostly to road projects.
These include $1.8 billion towards the WestConnex motorway, $403 million for the Pacific Highway, $170 million for the Princes Highway, and $135 million for Bridges for the Bush, the May 1 Sydney Morning Herald reported.
For the Coalition, "essential new infrastructure" is virtually equivalent to roads for private cars and trucks -- not public railways, hospitals and schools.
In addition, Baird has also indicated a plan to privatise NSW public hospitals. He recently highlighted proposals to further extend the current role of the private sector in running the state's hospitals.
"These [services] extend everywhere, from cleaning, to the public-private partnership to design, build, operate and maintain the new Northern Beaches Hospital," Baird told AAP on April 20. He promised to push forward privatisation in the hospital sector to "transform" the system.
The sale of government-owned assets is basically grand theft from the public purse. Even John Daley, CEO of the Grattan Institute thinktank, pointed out in the May 5 AFR: "The idea behind the latest Commonwealth-state agreement is 'asset recycling': selling assets and using the proceeds to fund new infrastructure. Superficially it's attractive. The problem is that when states sell infrastructure, they save on interest payments, but they also give up future revenues from those assets. Although NSW is seen to have negotiated good prices for recent long-term leases of three ports, the interest saved will be about the same as the revenue given up."
In other words, public revenue gains no benefit from privatisation: it merely represents a huge hand-out to the corporate ruling class, permanently moving crucial state property into the hands of the wealthiest corporations.
Already, it is clear that public opinion in this country is strongly opposed to further privatisation of public assets. What is needed urgently now is a vigorous campaign by the unions and community organisations to mobilise this sentiment into a massive movement to stop the sell-offs, at state and national levels.
Already the Not4Sale campaign against Liberal and Labor state governments’ privatisation in Queensland has shown the direction we need. The Hands Off Aussie Post campaign against the proposed sell-off of Australia Post has also made ground in recent times.
If the huge cuts to state finances announced in the Abbott government's recent budget are to be successfully fought, the public will need to link their struggle with opposition to the sell-off of state-owned public assets.