Friday, July 4, 2008

Garnaut report clashes with NSW electricity plan: Greens

ABC News Online, Posted 1 hour 47 minutes ago 

Updated 1 hour 48 minutes ago

The New South Wales Greens say the Garnaut report on climate change makes privatisation of the state's electricity even more unattractive.

Economist Ross Garnaut yesterday released his draft report, which says there is no need to compensate power companies for any drop in their asset's value with an emissions trading scheme.

State Greens MP John Kaye says that means State Treasurer Michael Costa needs to reassess his plans to sell.

"Without compensation for the generators, their sale price will plummet," he said.

"Garnaut has said no compensation - that's a direct shot across the bows of Michael Costa and his privatisation push."

Meanwhile the NSW Business Chamber says the State Government should also resist the urge to offer exemptions in any emissions trading scheme.

The Business Chamber's Paul Ritchie says he is supportive of a scheme but the policy should not be hurried.

"The issue about this scheme is that if it's to work it has to have the broadest base possible," he said.

"You cannot allow for the distortions of some people saying, 'We're special, we're precious, don't include us in the system', and others may be having to bear more of a burden because of that."

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