SA: Egan attacks SA govt over electricity interconnector

AAP General News (Australia)
04-27-2001
SA: Egan attacks SA govt over electricity interconnector

ADELAIDE, April 27 AAP - New South Wales Treasurer Michael Egan today branded the South
Australian government incompetent for not supporting an electricity interconnector between
the two states.

Mr Egan launched the broadside, saying SA Premier John Olsen first proposed an interconnector
in 1996.

But Mr Egan said the SA government later withdrew support for the project, a decision
he said meant SA was now facing power shortages and spiralling electricity costs.

"How South Australia can cope with a government of such incompetence I think is a matter
not just of regret for people in South Australia but a matter of great national regret,"

Mr Egan told reporters.

"You can't have one of the major states of Australia suffering like South Australia
is suffering because of an incompetent decision to restrict power supplies to its own
state.

"What a ridiculous thing, what a stupid thing.

"The next thing they'll be doing is trying to cut off the water supplies."

Mr Egan accused the SA government of rejecting the interconnector in order to restrict
power supply in its state and secure a better price when it sold or leased its electricity
assets.

"The first I ever heard of an electricity interconnection between New South Wales and
South Australia was from John Olsen back in 1996," Mr Egan said.

"He made the proposal to me and I went back to New South Wales and I got our energy
experts to look at the proposal, which they did, and it came up trumps.

"It was agreed by both South Australia and New South Wales that an interconnection
... was the way to go, not only to ensure low electricity prices in SA but also ensure
security of electricity supplies.

"A couple of years later, when the project was ready to start, the Olsen government
simply pulled the rug out from under.

"The Olsen government decided that by restricting supply in South Australia, that would
help it get a bigger sale price for the lease or the sale of ETSA."

AAP vm/las/sb

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