Treasury budget hints at power grid sell-off

Press, 7 October 1988, Page 4

Treasury budget hints at power grid sell-off

By

BRENDON BURNS,

political reporter The Treasury has budgeted to spend $850,000 this year for what appears to be an investigation of privatising parts of the electricity system. The Opposition spokeswoman on finance, Miss Ruth Richardson, released Treasury figures last evening which showed it spent $10.5 million last year on private consultants. This year, it has set aside more than $3 million for consultancy work. This includes a sum of $850,000 for what is

termed, "electricity task force costs (Treasury share.)” No announcement has been made of any Government intention to privatise any part of the electricity system, but Miss Richardson said this appeared to be what was under investigation. A further sum of $900,000 is provided for the use of consultants in the restructuring of broadcasting, and $250,000 for an assessment of Railways. Spending during the last financial year included more than $3 million paid to N. M. Rothschild and

Sons for the valuation of Telecom. Miss Richardson said the Treasury had spent 20.5 per cent of its operating budget on consultants and contracts for services. It had provided no explanation or justification of the sums involved. The Treasury regarded itself as above Parliamentary scrutiny. “The expenditure of such large sums of taxpayers’ money in consultancy fees opens up a whole new field for potential abuse and therefore requires a high level of accountability,” said Miss Richardson.