SA: Former SA government defends power contract
Former South Australian treasurer ROB LUCAS says the state's former Liberal governmentdid all it could to reduce risks involved with the privatisation of a power station.
The current Labor government said yesterday the state's budget faces a $140 millionblowout because Flinders Osborne Trading is heading into voluntary administration.
The move comes as its US parent company NRG Energy suffers severe financial difficulty.
Mr LUCAS was a minister of the former government when it struck a deal with FlindersOsborne Trading in 1996 to sell two power stations in the state to NRG Energy.
Treasurer KEVIN FOLEY said yesterday that under a guarantee of the former Liberal government,the government became liable to pay at least $140 million.
Mr LUCAS, now the opposition's treasury spokesman, says advice to the former governmentwas that it was highly unlikely the guarantee would be called in.
AAP RTV sl/rcg/rk
KEYWORD: BUDGET SA (ADELAIDE)
No comments:
Post a Comment