Sunday, 4 May 2008

A political decision !

When the voters mark their ballot paper the political party receiving the most votes forms government. The voters have an expectation of what direction that government will take from the policies that have been expressed prior to the election. There are no laws on the stature books that bind any political party to keeping it's election promises.

A political party is formed when a number of like minded people gather together with the intention of endorsing candidates to stand for election and promote a common political agenda. Such a political party normally forms local branches and selects the candidate to represent that party. There is an expectation that the candidate will adhere to the policies expressed by that branch.

New South Wales Premier Morris Iemma has a problem. The policy of his government is moving in sharp and bitter conflict with the wishes of his party branches. More to the point. Prior to the last election his stated policy was the opposite of which he is now proceeding.

The issue is whether to sell off and privatise the NSW electrical industry. There is no doubt that this industry is facing a crisis. Unless new generating capacity is built the state will face power shortages and blackouts down the track.
This will cost billions - and further huge sums will be necessary to refurbish the electrical distribution network.

Iemma states that if this is undertaken by the government it will be at the cost of hospitals, schools and transport. He claims that a sell-off will inject billions into the economy and pass electricity generation and supply to the private sector.

The unions - which are backers of the Australian Labor party - content that this is a sell-off of a state asset and in private hands costs to consumers will increase sharply and there will be massive job losses.

There is no doubt that power generation faces a looming crisis - whether it is state or privately owned. Power generation by burning coal is one of the biggest sources of Co2 emissions. It is inevitable that some penalty - such as a " trade and save " emission scheme will be compulsorily introduced to make coal fired generation less attractive in comparison with renewable sources - such as wind, solar or thermal generation.

Inevitably, this will increase the cost of electricity substantially - and some feel the main government motive is to distance itself from these price rises as a means of political salvation.

So we have a classic " Mexican stand-off ". The government has dug it's toes in and intends to privatise NSW electricity - despite opposition from the majority of ALP branches - and implacable opposition from the unions.

Iemma's own job as premier is on the line - and there is every chance that this could fragment the ALP and see a division formed that could send the party into the political wilderness.

Who is right - and who is wrong - is a matter of individual opinion. One of the issues that will be discussed for millenia is the obligation - or otherwise - for a political party to carry out the wishes of it's members.

If it fails to do that - what is the purpose of such a party ?

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