Captain Obvious 1
:D :D :D
http://au.news.yahoo.com/060602/2/z7rv.html
Friday June 2, 05:48 PM
'People power' kills Snowy Hydro sale
People power has killed plans by the federal, Victorian and NSW governments to sell iconic Australian company, Snowy Hydro.
In the face of overwhelming public opposition, from backbenchers to farmers, Prime Minister John Howard announced Canberra would withdraw its 13 per cent share of the company from sale.
Mr Howard's backflip immediately forced the hand of the majority shareholder, NSW, with an angry Premier Morris Iemma abandoning plans to sell his state's 58 per cent of the power generator.
"It's off, the PM with his statement has pulled the rug on the sale," Mr Iemma told reporters.
Minutes later it was Victoria's turn, as it too declared its stake in Snowy Hydro - 29 per cent - would not be sold.
Mr Howard admitted to misreading the public's attitude towards the sale, saying it was clear people had an attachment to the Snowy and its role in Australia's post-war development.
"I have been surprised by the level of public disquiet - it's turned out to be much greater than I expected," he told reporters.
"There is, for whatever combination of reasons, there is overwhelming feeling in the community that the Snowy is an icon, it's part of the great saga of post-World War II development in Australia."
But Mr Iemma said Mr Howard had put at risk schools, roads and other infrastructure in NSW with his decision.
NSW had been counting to raise at least $1.5 billion from the sale.
He said the NSW government could not afford to fund Snowy Hydro's expansion, which ultimately meant the company would suffer.
"If Snowy Hydro Ltd does not invest interstate, its competitors will and Snowy Hydro will face increased competition and lose market share," he said.
"The NSW government still believes NSW taxpayers' funds should be spent in NSW, to build schools, hospitals and infrastructure. It should not be spent building power stations and in SA and Victoria."
Victorian Premier Steve Bracks said Mr Howard's backflip had put a question mark over every other proposed asset sale.
"Only a couple of days ago the prime minister was gung-ho. It really raises into question the government's commitment to sell and privatise Telstra ... and Medibank Private," he said.
For those opposed to the sale, however, Mr Howard's decision - and that of the states after him - could not have been better.
Nationals' backbencher Kay Hull said she was delighted with the decision.
"No government will ever have the guts to do this again. Bury this forever," she said.
"It's over and I'm very emotionally exhausted."
The mayor of the Snowy River Shire, Richard Wallace, said Australian politics had been turned on its head by the victory.
"The fact that we won, that the sale was called off, shows the government has to stop and listen to what the people are saying," he said.
Prominent Australians who signed a letter delivered to federal parliament this week, opposing the sale, also felt vindicated.
Doug Nicholas, who delivered the letter, said politicians were now all on notice the public would not take poor decisions lying down.
"It's a very good first step and a great warning to Australians about allowing any government to have absolute power," he said.
Former Reserve Bank governor Bernie Fraser said the three governments had put the short-term financial gains of the sale ahead of the nation's long-term interests.
"Apart from having substantial historical significance, it has great ongoing and future significance, particularly through the Snowy's contribution to the health of river systems in that part of the country," he said of Snowy Hydro.
Opposition Leader Kim Beazley was caught by surprise by the announcement, but said Mr Howard should now do a backflip on the proposed sale of Telstra.
"You've done a backflip on this and you are prepared to accept the minority shareholder status in the Snowy River, (now do a) backflip on Telstra," Mr Beazley told ABC radio.
But not everyone was happy.
Financial analysts said there was no good reason to abandon the sale, with Australia's business reputation now in tatters.
"The loser is Australia because we become a laughing stock on the international stage," Stock Analysis analyst Peter Strachan said.
"What this shows is that the government is standing in the way of commerce."
The three governments also face a $20 million payout to the three companies engaged to market the sale.
--------------
Clever political manouver Mr Howard.
Friday June 2, 05:48 PM
'People power' kills Snowy Hydro sale
People power has killed plans by the federal, Victorian and NSW governments to sell iconic Australian company, Snowy Hydro.
In the face of overwhelming public opposition, from backbenchers to farmers, Prime Minister John Howard announced Canberra would withdraw its 13 per cent share of the company from sale.
Mr Howard's backflip immediately forced the hand of the majority shareholder, NSW, with an angry Premier Morris Iemma abandoning plans to sell his state's 58 per cent of the power generator.
"It's off, the PM with his statement has pulled the rug on the sale," Mr Iemma told reporters.
Minutes later it was Victoria's turn, as it too declared its stake in Snowy Hydro - 29 per cent - would not be sold.
Mr Howard admitted to misreading the public's attitude towards the sale, saying it was clear people had an attachment to the Snowy and its role in Australia's post-war development.
"I have been surprised by the level of public disquiet - it's turned out to be much greater than I expected," he told reporters.
"There is, for whatever combination of reasons, there is overwhelming feeling in the community that the Snowy is an icon, it's part of the great saga of post-World War II development in Australia."
But Mr Iemma said Mr Howard had put at risk schools, roads and other infrastructure in NSW with his decision.
NSW had been counting to raise at least $1.5 billion from the sale.
He said the NSW government could not afford to fund Snowy Hydro's expansion, which ultimately meant the company would suffer.
"If Snowy Hydro Ltd does not invest interstate, its competitors will and Snowy Hydro will face increased competition and lose market share," he said.
"The NSW government still believes NSW taxpayers' funds should be spent in NSW, to build schools, hospitals and infrastructure. It should not be spent building power stations and in SA and Victoria."
Victorian Premier Steve Bracks said Mr Howard's backflip had put a question mark over every other proposed asset sale.
"Only a couple of days ago the prime minister was gung-ho. It really raises into question the government's commitment to sell and privatise Telstra ... and Medibank Private," he said.
For those opposed to the sale, however, Mr Howard's decision - and that of the states after him - could not have been better.
Nationals' backbencher Kay Hull said she was delighted with the decision.
"No government will ever have the guts to do this again. Bury this forever," she said.
"It's over and I'm very emotionally exhausted."
The mayor of the Snowy River Shire, Richard Wallace, said Australian politics had been turned on its head by the victory.
"The fact that we won, that the sale was called off, shows the government has to stop and listen to what the people are saying," he said.
Prominent Australians who signed a letter delivered to federal parliament this week, opposing the sale, also felt vindicated.
Doug Nicholas, who delivered the letter, said politicians were now all on notice the public would not take poor decisions lying down.
"It's a very good first step and a great warning to Australians about allowing any government to have absolute power," he said.
Former Reserve Bank governor Bernie Fraser said the three governments had put the short-term financial gains of the sale ahead of the nation's long-term interests.
"Apart from having substantial historical significance, it has great ongoing and future significance, particularly through the Snowy's contribution to the health of river systems in that part of the country," he said of Snowy Hydro.
Opposition Leader Kim Beazley was caught by surprise by the announcement, but said Mr Howard should now do a backflip on the proposed sale of Telstra.
"You've done a backflip on this and you are prepared to accept the minority shareholder status in the Snowy River, (now do a) backflip on Telstra," Mr Beazley told ABC radio.
But not everyone was happy.
Financial analysts said there was no good reason to abandon the sale, with Australia's business reputation now in tatters.
"The loser is Australia because we become a laughing stock on the international stage," Stock Analysis analyst Peter Strachan said.
"What this shows is that the government is standing in the way of commerce."
The three governments also face a $20 million payout to the three companies engaged to market the sale.
--------------
Clever political manouver Mr Howard. 
