Australian Financial Review
has achieved a major milestone with Friday’s in-principle agreement for federal top-up money for any proceeds raised from selling assets that are recycled into infrastructure projects. The deal aims to build political momentum so that, for example, Premier
in NSW and Premier
in Victoria can reduce the political risk of going to their next election promising further privatisation, notably the electricity generating and network assets in NSW and the Port of Melbourne in Victoria. Queensland’s
is not facing a poll until early 2015, but the deal will hopefully tempt that government to use its huge majority to build on its sale of half of freight operator
Privatisation is typically demonised by trade unions, whose workers are too often featherbedded under public ownership. But, as we report again today, the union-backed industry super funds are enthusiastically supporting Mr Hockey’s push. The workers will still own the means of production, but through their retirement savings rather than as taxpayers. Like refusing to subsidise Qantas and Holden, the political risk of privatisation could be rapidly receding when honestly put before voters.