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Auditor-General Confirms Gentrader 'Fire Sale'

Wednesday, 9th November 2011

The Rev Hon Fred Nile MLC, Leader of the Christian Democratic Party, has raised concern regarding apparent discrepancies in the account of events surrounding the recent Gentrader transactions.

Rev Nile raised the issue during question time in the NSW Legislative Council after a report by the New South Wales Auditor-General confirmed the findings of a Parliamentary Inquiry which he had previous chaired.

Reverend the Hon. Fred Nile: My question without notice is directed to the Minister for Finance and Services, and Minister for the Illawarra.

Justice Brian Tamberlin, QC stated in his recent report that the Gentrader transactions undertaken by the former Labor Government were not a "fire sale" but, rather, fiscal measures that were "reasonable and appropriate".

  • Is the Minister aware that Justice Tamberlin's report contradicts the previous findings of this House in its own inquiry and the recent findings of the New South Wales Auditor-General, who found that the sale of the generators resulted in a loss of nearly $2 billion?
  • Can the Minister provide some clarity and inform this House and the good people of this State what took place?

The Hon. Greg Pearce: I thank Reverend the Hon. Fred Nile for his question. I compliment him for his dedication and hard work in this House over many years. As honourable members know, part of his important work was the conduct of the inquiry into the Gentrader transactions, which took place late last year. I wish to quote from a number of articles about the most recent reports. Reverend the Hon. Fred Nile is absolutely correct: the Auditor-General has now found, contrary to the claims of Labor that the people of New South Wales received $5.3 billion on the transaction, that the net amount received by the people of New South Wales was $1.2 billion. That is consistent with the report of the committee chaired by Reverend the Hon. Fred Nile that was accepted by this House earlier.

The Auditor-General noted that the generators dropped in value by $1.8 billion. That is quite extraordinary. The Auditor-General commented that the proceeds were less than half the carrying value of the assets that were given away by the previous Government. That again is consistent with the inquiry report and the findings of this House. Justice Tamberlin was consistent. He said that the Government chose the second-best option. His adviser, the expert Donald Challen, said that the Labor Party compromised the full sale of the power assets because of the process that was undertaken. Indeed, Justice Tamberlin commented that some bidders were deterred.

What Labor accepted and rammed through at midnight, having forced directors to retire, was the second-best process, and even Justice Tamberlin commented that bidders were deterred.

The President: Order! There is far too much audible conversation from the Opposition benches. The Minister has the call.

The Hon. Greg Pearce: On Monday 31st of October the Government received the Tamberlin report and released it straightaway because we are a transparent and accountable government with nothing to hide. The report made a series of recommendations about the future of the New South Wales electricity industry. The report recommends the sale or long-term lease of generation assets and the sale of development sites and the Coborra mine. It recommended further that the Government make a decision about network businesses at a future point. As has been indicated previously, the Government will consider the recommendations and respond to the report by Christmas. The report confirmed that Labor's sale of the Gentrader rights was the second-best option.

The President: Order! I call the Hon. Eric Roozendaal to order for the first time.

The Hon. Greg Pearce: Let us remember 26 March when the people of New South Wales made their judgement. Justice Tamberlin made his judgement- [Time expired.]