The NSW Labor Government intends to privatise the state’s electricity industry and has the in-principle support of the Liberal Opposition, subject to a number of conditions. The Government, already sinking in the polls, faces a backlash from unions and its own rank-and-file members who, in the last Labor conference, voted down the proposal 702-107. Now there is open talk of a leadership spill with ALP powerbrokers publicly seeking to overthrow the Premier from within. This is going to get interesting economically as well as politically. Where do you stand on the issue? Do you think Iemma can stare down his enemies?

Greens MLC, Dr John Kaye, a fierce critic of the planned power sell-off, argues on his website that the privatisation of the electricity industry will be a “disaster” (retrieved 19/7/08).

By way of contrast, here is former Labor Prime Minister Paul Keating, a champion of privatisation in his own right, taking NSW union leaders to task (to put it mildly) as reported in The Sydney Morning Herald (6/5/08).

The Iemma Government is relying on the Report of the Owen Inquiry into the NSW electricity industry. Its key recommendation is found on page 1 of the summary.

A caveat: government inquiries should be taken with a grain of salt as they tend to conclude exactly what the government wants them to say.

Well, we can now answer the last question in the opening post. Mr Iemma has been forced to resign as Premier by his own party earlier today (The Australian, 5/9/08). Treasurer Michael Costa was sacked last night - by Iemma. This is the first time in its 117 year history that an ALP caucus deposes a serving NSW premier.