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QLD commission recommends sale of energy assets

Electricity suppliers may be interested to hear that it has been recommended that the Queensland government sell its electricity assets.

The Commission of Audit was ordered to provide a number of recommendations on how the state could get out of its current level of debt.

Peter Costello, the former treasurer in the Howard government, headed up the investigation.

The report found that private ownership would make better use of the state's electrical infrastructure.

It read: "The state's energy assets are sufficiently attractive to the private sector that the government could reasonably be expected to raise the amount of money required to achieve the recommended debt reduction target.

"Moreover, the assets are not managed as efficiently as they would be if they were under private sector ownership, and it is unlikely that they ever could be under government ownership."

State treasurer Tim Nicholls told the Australian Associated Press that a $25 billion reduction in debt would see Queensland's AAA credit rating restored.

Mr Nicholls explained that to do this, the government would have to deliver a surplus for the next five decades. It was also highlighted that the state authority should focus its finances on the delivery of services and avoid ownership of infrastructure and assets.

Posted by Charlie Moore