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Parliament set to have power to block privatisations

The Malinauskas Government is backing a law change for both houses of parliament to approve or block selling off public assets – but the Liberal Party accuses Labor of hypocrisy and says it will restrict government decision-making.

Sep 09, 2022, updated Nov 30, 2022
Photo: Thomas Kelsall/InDaily

Photo: Thomas Kelsall/InDaily

The State Assets (Privatisation Restrictions) Bill 2022, introduced by Greens MLC Robert Simms, passed the Upper House on a voice vote yesterday after gaining the support of the governing Labor Party and SA-Best.

The Bill requires any public asset privatisation to be approved by both houses of state parliament, a potentially significant roadblock for a future government given no party has had full control of South Australia’s Upper House since the 1970s.

Parliament’s Economic and Finance Committee will also be required to scrutinise any proposed privatisation and table a report in parliament recommending whether to approve or reject an asset sale.

The Bill explicitly lists numerous state-owned assets that will be protected from “sale or other disposal”, including SA Water, Super SA, the South Australian Government Financing Authority, HomeStart Finance, the Lifetime Support Authority, the Motor Accident Commission, the Return to Work Corporation and the South Australian Forestry Corporation.

The legislation has been received in the Lower House where it will pass into law at a later sitting date.

Liberal MLC Heidi Girolamo, speaking on behalf of the Opposition, said the Bill would restrict government’s capacity to make decisions.

She told parliament that “privatisation is not always the enemy”.

By taking away decision-making power from the government of the day, we’re effectively saying that the government is not able to govern their own assets.

“I think it’s worth mentioning that privatising state-owned assets is not always about money,” she said.

“Privatising has the potential to improve services for South Australians, creating jobs and encouraging competition in the market.

“By taking away decision-making power from the government of the day, we’re effectively saying that the government is not able to govern their own assets.”

Girolamo also highlighted Labor’s record on privatisation, accusing them of hypocrisy after the Weatherill Government sold off the Motor Accident Commission, SA Lotteries and Forestry SA.

“The Labor Party is always very critical of privatisation, however, I don’t think it’s too harsh to say how hypocritical it is from those opposite in the chamber – they privatised anything that wasn’t pinned down,” she said.

Girolamo said while the government of the day “should have the ability to properly and adequately govern”, the Opposition “understand(s) that the government is responsible to the community and therefore to the parliament”.

The Liberal Party did not call for a division on the floor of parliament to vote on the Bill.

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Greens MLC Simms said the passage of his legislation would prevent future governments from privatising public services “by stealth”.

“Privatisation has had a catastrophic effect on South Australia. It’s resulted in higher prices, it’s resulted in reduced services and it’s resulted in public service cuts,” he told parliament.

“That genie was let out of the bottle many years ago by the Olsen Government and we haven’t been able to put it back in over many many years.”

He also labelled the Liberal Party’s comments on the Bill “extraordinary”.

“It seems they still have a privatisation agenda, and should they ever return to the government benches here in this state it is an agenda that they will seek to implement once again,” he said.

“What this bill does is safeguards those public services that have not been privatised… from privatisation of any future government.”

Attorney General Kyam Maher highlighted Labor’s election pledge to reverse the Marshall Government’s $2.14bn privatisation of Adelaide trains and trams as evidence “that we are not supportive of privatisation”.

He also labelled the Olsen Government’s 1999 decision to sell off the Electricity Trust of South Australia as “one of the most egregious and worst examples of privatisation to the detriment of South Australians that we’ve seen in the history of this state”.

“We welcome this bill which seeks to ensure the body corporates listed remain in public hands,” Maher told parliament.

SA-Best MLC Frank Pangallo, speaking in support of the Bill, said he hoped the Labor Party would “stick to their about-face on privatisation”.

“It does not mean privatisation of assets will not happen. This legislation ensures the matter is given full consideration,” Pangallo told parliament.

“No longer will there be secret deals done behind closed doors or decisions made within cabinet without full disclosure first being made to the parliament.”

The Malinauskas Government is working with private operator Keolis Downer on terminating their $2.14b contract to run Adelaide’s passenger trains.

The Department is also conducting an internal assessment examining the feasibility of bringing SA’s bus services – privatised in 2000 – back into public hands.

That report is due by February 2023.

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