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The New South Wales Opposition says nearly 2,300 people lost their jobs in the Illawarra last year.
Opposition Treasury spokesman Mike Baird says people are losing their jobs because the State Labor Government has failed to focus on key economic priorities.
Mr Baird says the Coalition would offer incentives to local businesses to create new jobs in the Illawarra.
New South Wales Treasurer Eric Roozendaal is being accused of a writing a blank cheque to consultants during his bid to sell off the state’s electricity assets.
Previously secret cabinet documents show the NSW Government expects to spend more than $160 million on the sale process.
Credit Suisse is one of the biggest beneficiaries, expecting to pocket a $26 million success fee, while a public relations company is being paid up $30,000 a week.
Electricity privatisation came at great political cost to former premier Morris Iemma, but the cost to the taxpayer is just as dramatic.
The Government has been forced by the Upper House to reveal the costs associated with the sell-off.
The papers reveal that as of February, $71 million had already been spent on consultants.
The spending was expected to hit $170 million by the end of this financial year when the sale was set to be completed, but it could go higher now that the sale has been delayed until the end of the year.
“Well, the numbers are astronomical. I mean they’re almost beyond belief,” Opposition treasury spokesman Mike Baird said.
“Everyone understands consultants are required for a transaction such as this but this almost seems to be a blank cheque for whoever wants to get a ticket to the party.”
Chief advisers Lazard and Credit Suisse are expected to share about $120 million while Ernst and Young has already raked in $21 million.
Public relations firm Cosway is being paid up to $30,000 a week and along with Gavin Anderson, the PR bill alone stands at $2.7 million.
“Well, I’m not quite sure what they’ve got to communicate, they haven’t completed the transaction. The only thing we’ve heard is it’s been delayed indefinitely,” Mr Baird said.
“The top two executives overseeing the sale are also being paid more than $500,000 a year each, easily eclipsing the premier’s salary.
“The jobs weren’t advertised either. Both were installed without the normal process because of what the Government called the extreme urgency of the sale.
“There is no rush. A transaction like this should not be done under a motivation of an election.”
There was another pertinent document in the 23 boxes of information delivered to Parliament House – it is marked “Internal Working Document” and comes from NSW Treasury.
It gave this advice to cabinet: “It’s important to be running a tight ship. Every dollar saved in the transaction process is an extra dollar the Government can invest in front line services.”
The sale of NSW Lotteries has hit a massive legal snag as claims emerge that the $850 million contract could even be declared void.
A critical, eleventh-hour change to the deal between the State Government and the Tatts Group breaches the legislation that allows the sale.
The NSW Opposition and the Greens say they believe an amendment is needed, but have vowed to block it in the Upper House.
The Government announced its intention to sell NSW Lotteries last year, but told prospective bidders it would not include unclaimed prizes.
Bids were received, which were reportedly around the $700 million mark.
The Acting Treasurer John Hatzistergos says the Tatts Group was the only one which put in what is called a non-conforming bid, offering $850 million if the Government threw in the unclaimed prizes.
That bid was accepted.
The problem is the legislation permitting the sell-off had already gone through Parliament and it says the Government will keep that unclaimed prize money.
Opposition treasury spokesman Mike Baird says if the Government moves to amend the Act, it will block it.
“Until the Auditor General has looked at this transaction, we have no intention of moving forward,” he said.
NSW Greens MP Lee Rhiannon says her party will join them.
“The Greens under no circumstances are going to help the Government fix up a problem that they have with privatising NSW Lotteries,” she said.
She says the Greens are even seeking legal advice on whether the contract with Tatts Group has to be torn up.
“The New South Wales Government is in a legal mess – they have broken their own legislation,” she said.
The Shooters Party also says it would vote it down.
But a spokesman for the Treasurer says he has legal advice saying there is discretion in the legislation that would allow it to ignore the breach.
But a rival bidder has legal advice saying that would be against the spirit of the law.
Mr Baird says the Opposition is seeking its own opinions and may challenge the sale.
“This is highly embarrassing for the Government, a pretty simple transaction that’s been approved by the Parliament he hasn’t been able to deliver,” he said.
Mr Baird says all the bidders should be allowed to resubmit bids for the unclaimed prize money.
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