Peter Andren (Calare, Independent) Share this | Link to this | Hansard source

My question is to the Prime Minister. Given differing legal opinions on the constitutionality of the sale of Snowy Hydro Ltd and on the motion used to achieve this parliament’s agreement, will the government listen to growing public concern, and concern from within its own ranks, and consider a full public inquiry before proceeding with any sale of the Commonwealth’s share? Will it seek similar undertakings from the New South Wales and Victorian state governments on the sale of their respective shares in Snowy Hydro? If not, why not?

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I thank the member for Calare for his question. I am aware that this issue has attracted a lot of publicity. I am aware that a number of people, including one in particular for whom I have some affection—a good colleague of mine, who represents the state of New South Wales—and others, have voiced some reservations. Let me do my best. In doing this, I do not think I get things wrong in saying that this legislation passed the House without opposition from the Australian Labor Party.

Honourable Members:

Honourable members interjecting—

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

You have not joined the Australian Labor Party, have you? I mean no offence to the member for Calare.

Peter Andren (Calare, Independent) Share this | Link to this | Hansard source

Mr Speaker, I raise a very respectful point of order. It was a motion; it was not legislation.

David Hawker (Speaker) Share this | Link to this | Hansard source

I call the honourable Prime Minister.

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I thought I said ‘without opposition’. You are correct: it was a motion. I do not think they voted against it—am I right?

Honourable Members:

Honourable members interjecting—

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

They supported it; okay. I know that is not of any account in a sense but I am trying to make my point, Mr Speaker. Let me explain to the House—and this is a serious issue, and I treat the—

Ms Anna Burke (Chisholm, Australian Labor Party) Share this | Link to this | Hansard source

Ms Burke interjecting

David Hawker (Speaker) Share this | Link to this | Hansard source

Order! The member for Chisholm!

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I note, Mr Speaker, that the Labor Party is trying to stop me giving a respectful answer to an Independent member. We have decided to sell our 13 per cent stake in Snowy Hydro for three main reasons. The first is that the Commonwealth holds a minority 13 per cent and we have accepted that the New South Wales government decided in December of last year to proceed with the sale whether or not the Commonwealth chose to participate.

The second and very important reason, we are selling is that we are very confident that the sale will not affect water flows for irrigation and the environment in any way, and let me tell the House why. Firstly, Snowy Hydro does not own any water itself; the public owns that water. All Snowy Hydro has is a licence issued by New South Wales that permits them to make use of the water. That licence is locked in for 75 years through legislation and agreements that New South Wales has signed with other governments. That licence is the instrument that obligates Snowy Hydro to make guaranteed minimum annual releases to the River Murray into the Murrumbidgee, and the sale will not change that obligation in any way nor will it change our commitment to making environmental releases down the Snowy River.

As for the arrangements we have had with Snowy Hydro and the Murray-Darling Basin Commission, can I remind the House of the budget subvention of some $500 million along the way to the Murray-Darling Basin Commission. Those arrangements, put in place since the sale was announced, will mean that the commission and New South Wales and Victorian water agencies will have more information and more certainty on the timing of releases for irrigation.

The third reason why we support the sale is that we believe that the private sector is best at running businesses, not government, and we are instructed by long years of experience in relation to that. Our responsibility is to make certain that the regulatory regime protects the stakeholders. I remind the House and I remind the member for Calare that much of Snowy Hydro’s infrastructure is now 40 or more years old and privatising the company will give it access to new capital and it can reinvest in and upgrade its clean, green energy business. And I think that is a very good result for the environment, a good result for electricity consumers and a very good result for the region.

I understand the concerns that have been expressed and I acknowledge that this is probably an issue where, on the surface, a majority of public opinion would oppose what is being done by the three governments. But that is what I think, for the reasons that I have outlined to the House and for other reasons, and I would be very happy to further explore them with the member for Calare and indeed any member of the House who has concerns. And the concerns that others have in this parliament have been put to me and I have a feeling they will be put to me very forcefully within the next few days and in no uncertain terms, but, as always, I will listen to those and I will respond as best I can. But for the reasons I have outlined, I think the government has taken the right decision. I am not persuaded that the legal position is quite as ambiguous as that represented in some newspaper articles this morning, particularly on the front page of the Financial Review. I think the legal basis of what we are doing is pretty sound and I am not disposed and the government is not disposed to change our position.