Motion - Government Privatisation Agenda

Thursday 13 March 2025

[5.08 p.m.]

Ms O'CONNOR (Hobart) - Mr President, I move -

That the Council:

(1)   Notes the stated intention of the Rockliff minority government to privatise government business enterprises (GBEs) and state-owned companies (SOCs), with only Hydro Tasmania excluded from possible sale.

(2)    Recognises this means the potential sale of TasNetworks Pty Ltd, Aurora Energy Pty Ltd, Tasmanian Irrigation Pty Ltd, Metro Tasmania Pty Ltd, TasPorts Pty Ltd, Tasmanian Railway Pty Ltd, Tasracing Pty Ltd, TT-Line Company Pty Ltd, Forestry Tasmania Pty Ltd, the Motor Accidents Insurance Board, Port Arthur Historic Site Management Authority, Tasmanian Public Finance Corporation, and the Public Trustee.

(3)   Agrees these GBEs and SOCs have been built up by generations of Tasmanians and are owned by the people of Tasmania.

(4)    Further notes this massive privatisation agenda was not taken to the 2024 state election, nor included in the Tasmanian Liberals' 2030 Strong Plan.

(5)    Agrees the Rockliff minority government has no mandate for its privatisation agenda.

[6.27 p.m.]

Ms ARMITAGE (Launceston) - I thank the honourable member for Hobart for bringing this motion on today and agree that it is an important issue worthy of our attention and this is necessary to discuss. To the first and second points of the motion, these are undeniably true. I do note the stated intention of the Rockliff government to privatise government business enterprises and state-owned corporations, with only Hydro Tasmania excluded from possible sale, and that this consequently means that a number of Tasmanian enterprises and corporations are potentially up for sale.

To point three, I also agree that these GBEs and SOCs have indeed been built up by generations of Tasmanians and are owned by the people of Tasmania. This necessarily means that it is more than just ownership of these organisations; it is the stake that the employees have in these organisations and the fact that people have potentially been working in these Tasmanian owned institutions for several years or even generations. They are Tasmanian in a sense that goes far beyond ownership, and I baulk at the prospect of a person, people or company who may go on to own them in the future. These GBEs and SOCs are ours. They are important to us and they hold meaning for us.

The Premier only announced this privatisation agenda around the time of the state of the state address earlier this year. We have gone from zero to 100 very quickly. Privatisation of these GBEs and SOCs is the nuclear option and we are hurtling towards it very quickly. To that end, yes, I do know that this massive privatisation agenda was not taken to the 2024 state election nor included in the Tasmanian Liberals 2030 Strong Plan.

Tasmanians own these organisations. We care about them and we have a stake in them and that means we get a say in where, when and how and why we dispose of them. We have not been availed of this opportunity and, as representatives of our various constituencies, it really is our responsibility to represent the views of the people regarding this plan and what I am hearing is a resounding no. Tasmanians have been through enough. They are going through enough. We have a massive debt to pay down as well as the costs associated with servicing those debts. The fact that selling our SOCs and GBEs to pay down and service debts is just astonishing to me. It is a short-term solution that will have long-term consequences.

Do we think that some of these services, Metro, for example, will improve in the hands of private operators, if a buyer can even be found?

What are we really selling? The GBEs and the SOCs for a short‑term sugar hit? What about the revenue lost over the long term? In 2023‑24, our SOCs paid $319.52 million in revenue to the government by way of dividends. Of that, $175.42 million came from Hydro Tasmania. I know Hydro is not being considered for sale, but that $144.1 million that came from the other SOCs is not insignificant. For lack of a better simile, these are golden eggs. They are very reliable profits that are brought back into the Tasmanian coffers and thus to the Tasmanian people who work very hard in these organisations. I always think about the TAB and while I know there were many differing views on whether or not a wagering business ought to be something in public ownership, but how much money in revenue could we have received since its sale 15‑odd years ago?

My point is, we need to consider the sale of GBEs and SOCs extremely carefully. Yes, I understand that a number of GBEs do not always turn a profit. Metro, Port Arthur Historic Site Management Authority, TasRail, Tasracing, TT‑Line, and the Public Trustee did not turn profits in the 2023‑24 year. However, we have to understand the services that many of these GBEs provide to the community, not to mention how they keep Tasmanians in employment. It was mentioned by the member for Nelson that Metro is actually a service. It does not make a profit, but for many people that cannot drive and have no other way of getting where they need to go. As I said, it is called a service. Unfortunately, in private enterprise, people need to make a profit. These services are far too important to be losing or cutting corners with. Not to mention the people whose jobs will be at risk or lost in the hands of private operators, whose priority will be with shareholders, not with the people who rely on their services.

It is a lose‑lose situation. I also agree that the Rockliff government does not have a mandate for this privatisation agenda. Tasmanians deserve a say on this and they deserve to be heard directly by way of a ballot box. A letter to The Examiner's editor last week very astutely made the comparison between shareholders and taxpayers in this context. Of course, you cannot make major decisions about a company without the shareholders' agreement. I think the same logic applies here. It is important that we consider good ideas about what is and what is not in the interests of Tasmanians, not just now, but into the future.

Nathan Calman, CEO of TasFarmers, put it very nicely when he said:

GBEs and/or SOCs should be considered for sale or lease in circumstances where it is clearly in the state's long‑term interest and not just for short‑term gain, either financial or political, and where it becomes clear that the SOC cannot operate effectively under government ownership.

I could not agree more. These are circumstances where I strongly believe that consideration of selling our GBEs and SOCs is not at all wise and I want to state emphatically right here and now, we have other options we should consider first. I understand the TCCI has suggested locking up windfalls into a sovereign wealth fund.

My point is that we are not locked into this course of action and selling our GBEs and our SOCs is not a foregone conclusion. It is something that, at the very least, needs to be considered extremely carefully. It should only be done in circumstances that call for it. Paying down debt and servicing does not cut it. Again, I thank the honourable member for Hobart for bringing it forward and I wish to note the motion.