Scott Morrison changes energy policy after accusations of privatisation

In a stunning shift, the Federal Government has scrambled to overhaul its energy policy to head off a devastating privatisation scare campaign in Queensland.

IN a stunning shift, the Federal Government last night scrambled to overhaul its energy policy to head off a devastating privatisation scare campaign in Queensland.

Proposed laws that would have forced the State Government to sell its electricity assets if it manipulated power prices sparked fiery accusations of “privatisation by stealth”.

Energy policy: ‘If PM wants to start a war, he’s got one’

Labor had already begun preparing a campaign linking Prime Minister Scott Morrison to former premier Campbell Newman’s plans to sell assets, a tactic that had devastating effects for the LNP in the state election campaign and the Longman by-election.

Treasurer Josh Frydenberg says the laws will make things clear.

Just hours after the Government confirmed to The Courier-Mail the laws did not prohibit divesting assets to a private company, Treasurer Josh Frydenberg revealed the proposal would be changed to specifically prevent this.

“In the case of a government-owned energy company, the legislation will make abundantly clear the court can only order a divestment to another entity owned by the same government,” Mr Frydenberg said.

The original proposal would have seen the Federal Court able to order the State Government to divest assets of a power generator to a competitor if it was caught gaming the system, but only as a last resort.

It did not force the assets to be sold to a private enterprise, the Government suggesting they could go to another state-owned company, but it also did not prohibit private sale.

Premier Annastacia Palaszczuk and LNP Opposition Leader Deb Frecklington slammed the original proposal, arguing Queenslanders had already made it clear they did not support asset sales.

Premier Annastacia Palaszczuk will not sell assets.

Ms Palaszczuk said she would consider legal action if the Commonwealth attempted to sell the state-owned generators.

“If he wants to start a war with Queensland, well, he’s got one, because we are not selling our assets,” she said.

Ms Frecklington said power assets should be kept in public hands.

“The PM’s plan is out of touch,” Ms Frecklington said.

Mr Morrison had earlier denied the plan had anything to do with privatisation, saying it was needed to stop the Queensland Government “ripping off electricity customers” to fix its budget.

“The Queensland Government has been dividend stripping out of the Queensland electricity industry to prop up their financial mismanagement,” he said.

Opposition Leader Bill Shorten said the Government needed to rule out selling off state-owned assets.