Snowy River Sell-off Leaves States up the Creek - 15 February 2006

Greens representatives from Victoria and NSW have called on their respective governments to rethink the sale of the Snowy Hydro scheme.

NSW Greens MLC Ian Cohen warned that there was no way that environmental flows could be guaranteed if the Snowy scheme was privatised.

Greg Barber, Victorian Greens candidate in this year's state election, says the Victorian public will lose control of one of its most vital natural assets with the effective privatisation of water that flows into the state’s major river systems.

“A privatised Snowy scheme will put shareholder interest first. It seems the NSW Government has not learnt from the Cross City Tunnel fiasco and many other misguided attempts to sell off government assets,” said Ian Cohen.

“It certainly will not be in the interests of private shareholders of the Snowy Hydro scheme to release water for environmental flows. The New South Wales Government says it will spend $30million to improve the health of the Snowy but won't use the money to buy out irrigation licences or reduce the water made available to irrigators. Minister Della Bosca’s statements ring hollow and it is impossible to see how the Snowy can be guaranteed an acceptable level of health under privatisation.” Mr Cohen said.

Greg Barber says that the Victorian Government will be trading off a healthy income stream for a short-term cash boost.

“All the assets of Snowy Hydro are worth nothing without the water. In effect Bracks, Howard and Iemma are selling the Snowy Water Licence - they are privatising the rivers,” Mr Barber said.

“The politics of getting more water back into the rivers have been difficult to say the least. By agreeing to sell, the Victorian Government, along with its Federal, New South Wales and South Australian partners, will hand the Snowy over to a group of private shareholders who will fight like hell to stop us getting more water back in the rivers,” said Mr Barber.