Although it was silent on the issue during the state elections, the NSW Labor government led by Premier Morris Iemma is canvassing plans to privatise large sections of state utilities including the rail network, the electricity grid and Sydneys ferries. The privatisation scheme is necessary, according to the government, to raise funds in order to reduce the budget deficit and pay for improvements in NSW hospitals and schools, and upgrades to the Sydney highways, as well as produce greater efficiency in public transport.