Official claims that NSW would be $300 billion better off if the state's electricity assets are privatised should be independently tested, amid "some disconnect" between statements the Baird government has provided the public, a parliamentary inquiry says.
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But Christian Democratic MP the Reverend Fred Nile, upon whom the government is reliant to pass its centrepiece re-election policy, says he is convinced the proposal is economically sound despite outstanding questions over its fiscal benefits.
Mr Nile on Tuesday announced the results of a parliamentary inquiry into the proposed part-lease of the state's "poles and wires", which the government says will create $20 billion to be spent on infrastructure.
The government says the investment will bring a $300 billion boost to the state's economy by 2035, by driving growth and tax revenue. The forecast was based on a government-commissioned report by Deloitte Access Economics.
Former NSW Labor treasurer Michael Egan supported the government's plan but described the Deloitte forecasts as "absolute nonsense" and other inquiry participants also expressed concern about the economic claims.
The inquiry, dominated by conservative MPs, acknowledged "some disconnect" between the government's claims that while revenue streams from the electricity businesses would substantially diminish over time, investor interest was strong and a lucrative deal would be struck.
The committee said the $300 billion claim should be "subject to an additional layer of scrutiny" and a review should be commissioned before the legislation is enacted. Mr Nile said this could delay the government's leasing plans.
The committee says the government should ensure Electricity Price Commissioner Allan Fels, charged with ensuring electricity bills are lower under privatisation, has the powers to do so.
It called on the government to ensure power company staff are guaranteed five years employment with the new operators, and that sufficient apprenticeships were offered.
It has been estimated that limits on what power companies can charge over four years will lead to 2500 job losses.
Mr Nile has previously expressed concern over selling the electricity distribution and transmission networks to a Chinese state-owned company.
But on Tuesday he said such decisions would be left to the Foreign Investment Review Board.
Greens MP John Kaye said there were no guarantees the government's proposal would not "devastate the state's budget" and damage the state's renewable energy future, adding "this is a very bad deal for the people of NSW".
