RAJ REPORT

Electricity PRIVATISATION—Queensland Government is guilty of rasing revenue BY HIGH ELECTRICITY PRICES to fix disastors like the Queensland HEALTH PAYROLL FIASCO—————3.76 Professor Garnaut noted that it was essentially a policy question for the relevant state government and they could choose to lower electricity prices:

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3.76      Professor Garnaut noted that it was essentially a policy question for the relevant state government and they could choose to lower electricity prices:

The question is different in publicly owned and privately owned networks. Where they are publicly owned—and this is overwhelmingly the case in New South Wales, Queensland, Western Australia and I think Tasmania—the issue does not involve any effect on the wealth of private firms. Here it is a straightforward public policy question. Really the question is: is artificially raising the price of electricity a good way for these governments to raise revenue? I would suggest that it is generally not a good way, and it is within the power of the governments themselves to apply a lower rate of return and bring down electricity prices. That will have an effect on government revenue. I would expect that there will be alternative forms of revenue that could give you the fiscal effect you want at much lower cost to the community.[99]

 

 

Part II – Parliament of Australia.

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