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Apr
26
SNOWY HYDRO’S SLICK PUSH TO PRIVATISE
Filed Under Max Talbot
We Need To Be Vigile On Our Snowy Hydro 24/7
Following hot on the heels of Issue 3 of Snowy Hydro’s glossy Newsletter, the local community has now received a slick DVD, presented by a ‘locally known’ identity.
In Issue 3 of the Newsletter and the DVD, Snowy Hydro CEO, Terry Charlton, appeals for any further debate to be positive, to be accurately informed: and above all, to be forward looking.
I can assure Mr Charlton that opposition to the sale of Snowy Hydro is forward looking to the time when, if sold, it and the Snowy Scheme’s water resource would inevitably end up in the hands of a multi-national corporation, or private equity fund: and to when future generations of Australians would be obliged to pay hundreds of millions of dollars to the new owners to regain control of the Scheme’s, and thus the Nations, water. Such an outcome must be avoided at all costs and can only be achieved if ownership remains firmly in government (public) hands.
Mr Charlton calls for the debate to be accurately informed. This of course should go without saying, however, such an outcome is dependant on accurate and complete information on Snowy Hydro and its activities being provided by its present management.
Unfortunately, I believe this to be far from the situation to date, where much of the information presented by Snowy Hydro is designed to support their privatisation agenda and is too often misleading, not just because of what it says but what it omits to say.
For example; the DVD contains a statement that there is a need for significant investment in the Scheme, that this is costly, with $800 million committed. As no timeframes are mentioned, the viewer could be left believing this expenditure on the Scheme to be essential in the short term.
However, I believe the expenditure to be that identified in Snowy Hydro’s 20 year asset management plan; that is, an average of $40 million per annum over and above normal operating and routine maintenance costs. Even so, such an amount would be difficult to achieve every year - due to resource and plant outage constraints. In any case, $40 million of investment annually does not need an injection of external capital, as claimed by Snowy Hydro, as it can easily be covered by the annual depreciation of Scheme assets of around $50 million.
Furthermore, it needs to be understood that it would be highly unusual for the whole $800 million currently forecast, to be committed over the coming 20 year time frame.
The DVD contains further examples of misleading or incomplete information that I intend to comment on at another time.
For example; there are a number of statements along the following lines – Snowy receives no payment for maintenance of dams: Snowy subsidises water services: water services are paid for by the electricity business: there is an increasing demand for environmental releases with no payment to Snowy Hydro: and finally, the old chestnut, Snowy doesn’t own the water.
Whilst generally true, what is the motivation behind such comments? If, for example; it is Snowy Hydro’s CEO, Terry Charlton and management endeavouring to ‘set the scene’ for payments to Snowy Hydro, at some time in the future, for the maintenance of water infrastructure, then they should think again.
Lets briefly go back to the original concept of the Snowy Scheme which was to collect and store water that fell (much of it as snow) on the eastern side of the Snowy Mountains and to divert it to the dry inland via trans-mountain tunnels. The Scheme had a long gestation period and very nearly did not get of the ground until agreement was reached to incorporate hydro power stations into the design and to ‘use’ the water to generate electricity – which was in extremely short supply at the time – with income from the sale of electricity being used to pay for the financing, construction and ongoing maintenance of the Scheme. Corporatisation in no way changed that basic concept.
Had the Scheme been built solely for water it would look quite different than it does today, with fewer dams, smaller tunnels and no power stations. Thus a considerable percentage – if not the major percentage- of the Scheme’s cost was in infrastructure to provide for electricity production.
As Terry Charlton and his management team well know that without the dams and tunnels and their associated control structures, Snowy Hydro does not have an electricity generating and trading business. They thus do not maintain the water infrastructure for altruistic reasons, but to protect their business interests.
If Terry Charlton is now indeed lobbying to be paid to maintain the Scheme’s water infrastructure, then the quid-pro-quo would be that Snowy Hydro pay for the right to ‘use’ the Scheme’s water – that they have admitted many times that they do not own – to run their generating and trading business. They may find that they would have to pay dearly for those rights.
Turning to the statement that there is increasing demand for environmental releases and that Snowy Hydro receives no payment for these releases.
Environmental releases from and within the Scheme result from the Snowy Water Inquiry – a precursor to corporatisation. The release volumes were fixed at the time and are embodied in the water licence. It was never intended that Snowy Hydro would receive payment for making the releases.
As I am not aware of any amendments to the water licence to provide for increased environmental releases; what do Snowy Hydro mean by stating that there is an increasing demand for environmental releases? They should clarify the statement.
More later.
Max Talbot
Cooma.
Mar
25
SIGN THE PETITION - NO SALE
Filed Under Misc, Snowy Hydro Management, Government
It would seem that the peoples voice of 2006 did not spell out to the politician the
WE THE PEOPLE DO NOT WANT SNOWY HYDRO SOLD OR PRIVATISED.
This 2008 petition we hope has dotted the I’s and crossed the T’s for the puppet masters and the politicians who did not and or DO NOT understand the meaning of the words NO SALE.
The end result of again manipulating or ignoring this petition will be political suicide which are two words even the intellectually challenged in government will understand.
All information will remain confidential and will not be disclosed to any other source other that for petition detailing to the subject Parliament.
Download the petition as a MSword document to take around and gather signatures -
CLICK HERE
To the Honourable Presidents and Members of the Legislative Council in the states of New South Wales, we also address the Speakers and Members of the respective Legislative Assembly of the state of New South Wales.
The undersigned people of New South Wales Australia who have signed this petition requesting that the New South Wales Government be reminded that the sale/privatisation of the people Snowy Hydro Ltd was withdrawn by the NSW government in June 2006 by listening to the mass of the peoples voice objecting to that current or further pursuant of selling Snowy Hydro Ltd.
Your petitioners respectfully request that the House act again with urgency to:
1. Stop any sale and/or privatisation of Snowy Hydro Ltd immediately
2. The New South Wales Government conduct a full and open inquiry to the position jointly taken with the Victorian Government that the Commonwealth acquire Snowy Hydro Limited and that any acquisition must guarantee the retention of existing water entitlements and the public ownership of the corporation as recommended by your convened Select Committee On The Continued Public Ownership Of Snowy Hydro Limited recommendations tabled in parliament October 2006.
3. Instigate a full and open inquiry into the facts behind the management and staff of Snowy Hydro Ltd lobbying to sell the people asset, and any conflict of interest in the board of directors.
Mar
24
Snowy Hydro Judas Team Need To Resign
Filed Under Acacia Rose
Acacia Rose (pictured) Comments:
Snowy Hydro CEO and NSW Government Ministers are unable to accept the common sense of the Australian people to retain the Snowy Scheme in public ownership and continue to spruik a privatisation agenda attempting as they are, to wrest this valuable public asset from public ownership and control.
In a recent ‘newsletter’ thinly veiled contempt for public wisdom and intelligence and ongoing privatisation propaganda saw the CEO state that his staff met with the NSW Treasurer Michael Costa and NSW Minister for Energy and Water Ian Macdonald (the CEO is even unable to spell the name of his ‘boss’ correctly) to talk up the sale of Snowy Hydro.
Mar
23
SNOWY HYDRO and a misdirected campaign to privatise
It was interesting to hear Snowy Hydro’s public relations front man, Paul Johnson, endeavor to defend the indefensible (ABC Radio, Bega 11th March 2008), this being that Snowy Hydro News, Issue 3 is to inform the community of Snowy Hydro’s business, its operation in the National Electricity Market and what is happening in the market; and is not a push to privatise the Scheme. It is however difficult to reconcile Johnson’s claims with Terry Charlton’s Business Update Column. For example; I lost count of the number of times that the need for additional capital was mentioned in the Column. As Charlton well knows, listing on the ASX (privatisation) is the only remaining option to gain access to additional capital.
New South Wales Treasurer Costa apparently told Snowy Hydro employees that Snowy Hydro could be in trouble in a few years time. Well, Snowy Hydro will only be in trouble if Costa and the NSW Labor Government mismanage the proposed sell-off of the NSW electricity industry such that market competitiveness is compromised by a reduction in market players and/or by further vertical integration (generators owning retailers and vice-versa).
Mar
23
SNOWY HYDRO CEO USES SPIN DOCTOR TACTICS
This extract is from the Snowy Hydro Ltd Newsletter - February 2008
Snowy Hydro Business Update
Terry Charlton
CEO & Managing Director
There can be no doubting that all who work within Snowy Hydro Limited want the business to succeed.
Our people want the Snowy Scheme to be continually upgraded and kept technically modern and operating at world’s best practice, as it is today. We all want the Scheme to be forever strategically important and widely regarded with considerable pride.
To achieve these objectives we need access to considerable amounts of additional capital that our shareholders understandably won’t provide and we are unable to borrow. Privatisation, which is, listing on the Australian Stock Exchange (ASX), would have given us access to additional capital.
The failure to privatise the Company was then, and continues to be today, detrimental to the long term future of the Company.
Mar
15
Max Talbot’s Speech April 2006
Filed Under Max Talbot
The NSW government push to sell the Snowy Hydro back in 2006 was driven by John Della-Bosca, the then treasurer, as it is now being pushed again by the treasurer Michael Costa from within the Snowy Hydro by management and certain staff member using tactics they think will go un-noticed.
Read here the speech delivered by Max Talbot in April 2006 to a meeting in Cooma that will show you the “horse is not dead” as we enter phase two of this despicable disregard of the people voice.
Mar
15
Snowy River Alliance Submission
Filed Under Snowy River Alliance
The Snowy River Alliance Inc has a finger on the pulse of the Hydro vipers and tendered a submission that questions the five year review of the Snowy Water Licence..
From their sit these pictures show the management of the river system as at 1966 then at 1998
The Bolong River 1966
The Bolong River 1998
To read the detailed copy of this submission sent to us by John Gallard (Chairperson SRA.) is worth taking the time to digest.
Mar
15
Max Talbot Speaks Out
Filed Under Max Talbot
When John Howard folded on the 2006 push by the Iemma and Bracks government to fire sale our Snowy Hydro, followed just minutes later by Iemma holding 53% control of the hydro and Bracks right behind holding 35% made us wonder why Howard commanded this move being in opposition and only Mr 12%.
Now Rudd hold the 12% making the Labor monopoly of Australia 100% in control.
Max Talbot has been a knight on the battlefield since day one on this firesale, Max had 43 years with electricity, 18 of those with Victorian Energy, 25 with Snowy Hydro. Appointed Executive Engineer in 1979, was involved in corporate agreements, including water licenses. He was promoted to Executive Officer Strategic Engineering of further planning Snowy Hydro assets, projecting for 20 years, from where he retired in October 2003.
Read these recent emails to the mainstream media …
Mar
15
Letter To The PM
Filed Under Acacia Rose, Alpine Riverkeepers
TO: PM KEVIN RUDD
Fax: (02) 6273 4100
12 March 08
The Hon Kevin Rudd
Prime Minister
Parliament House
CANBERRA ACT 2600
Dear Prime Minister
re: Snowy Hydro
As you are aware the Labor Party committed to retaining Snowy Hydro in public ownership and the local Member for Eden-Monaro made it very clear during the election campaign that Snowy would not be privatised.
The ongoing push to privatise by the Snowy Hydro CEO is completely out of
character with the national opinion at the time to keep Snowy in public
ownership. You remember the campaign and that ultimately, the then Howard
Government withdrew from the sale processes, as did the Victorian and NSW
Governments.
The question is why the CEO has since assumed a free reign to spend the
Snowy Hydro budget to continue to push for the sale of this important public
asset, without any redress to the respective Finance Ministers who represent
the broader Australian community, the rightful owners of the Snowy Scheme.
Mar
13
Alpine Riverkeepers today called for the end to privatisation talk by SnowyHydro CEO and a firm commitment from the three shareholder governments to move on from any prospects of listing Snowy on the ASX.
Acacia Rose spokesperson for Alpine Riverkeepers said ‘enough privatisation talk of Snowy Hydro is more than enough.’
‘The Australian people said a definite no to the sale of the Snowy Scheme and it is time for the CEO to move on if he does not like the job description to manage Snowy as a public entity.’
‘There is much more at stake than diversifying the Snowy portfolio for energy investments, there is the future of Australia’s water management to consider,’ she said.
‘Snowy is and always will be about water first and foremost and some energy generation is the added bonus to enable ongoing maintenance to keep the Scheme in mint operating condition.’
‘It is unthinkable that any person or government can move to sell off public infrastructure putting at risk energy and water security.’
Mar
12
HANDS OFF OUR HYDRO
Filed Under Max Talbot
No More Debate The People Have Spoken
In a recent article in the Jindabyne Summit Sun (14 February 2008), a group of Snowy Hydro employees called for an open debate on the future of the company.
There is no requirement for further debate. We had the debate during the first half of 2006, and following Australia wide opposition, governments cancelled the sale. That should have been the end of the matter, however, Snowy Hydro management refused to accept the decision and since that time have conducted a relentless campaign to get their way; by denigrating those who opposed the sale; through presentations to Chambers of Commerce, Country Women’s Association State Conference, Shire Councils, Service Clubs; via a community newsletter - that is little more than a company propaganda sheet - by lobbying government ministers and via press articles and letters.