NSW: Bribery allegations fly at NSW coalition s power plans

AAP General News (Australia)
02-15-1999
NSW: Bribery allegations fly at NSW coalition s power plans

By Catharine Munro, State Political Correspondent

SYDNEY, Feb 15 AAP - Allegations of electoral bribery flew at the New South Wales
opposition today following the release of its audacious plan to pay electricity consumers
$1,000 in exchange for privatising the power industry.

NSW Public Service Association (PSA) president Maurie O'Sullivan wrote to the New South
Wales' corruption watchdog questioning whether the handout would be considered a bribe.

"In my book you are offering people money for votes and that doesn't go down too well with
me and I'm sure I don't monopolise that feeling," Mr O'Sullivan told reporters.

But a spokesman for the Independent Commission Against Corruption (ICAC) indicated that the
offer would not be considered a bribe.

While the ICAC would not know until early next month whether it would investigate Mr
O'Sullivan's allegations further, party policies made in the context of an election campaign
were generally not considered bribes, the spokesman said.

Deputy coalition leader Ron Phillips hotly denied the offer was a bribe.

"This is not a bribe in any way, what this is doing is transferring the shares to the
community, they are entitled to participate," Mr Phillips told reporters in Sydney.

His denial was supported by the NSW Electoral Office, which said that a bribe had to occur
at the time a vote was cast.

"There's no more difficulty with this particular proposal than any proposal at the time of
an election," a spokesman said.

Mr Phillips said the handout, which can also be taken in the form of $1,100 in shares in
Energy Australia, would be tax free but any rise in the value of the shares would be subject
to capital gains tax.

But an Australian Taxation Office (ATO) spokesman cast doubt on Mr Phillips' assurance that
shares would not be taxed.

"We cannot comment on the shares," he told AAP.

"That situation is too complicated, there's too many variables and it would have to be
decided on a case-by-case basis."

The ATO had not reviewed the mechanisms of distributing the handouts, he said.

He said that as a general rule the $1,000 cash would not be taxable because it was a
one-off gift.

Mr Phillips admitted non-NSW residents, such as backpackers, who had electricity accounts
in the state could receive the handout.

"There will be anomalies around the edge and they will be determined by the electricity
ombudsman in determining the fairest way of handling those issues and making recommendations
to government," he said.

New South Wales Premier Bob Carr came his closest to making an absolute promise that the
ALP would not sell off the industry.

Asked if power privatisation was off the agenda for the next four years, Mr Carr replied,
"yes".

Treasurer Michael Egan, who is Upper House government leader, refused to make a commitment
not to block any sale by the coalition in the Upper House.

AAP cm/sb/cfm/ms/de

KEYWORD: POLLNSW POWER NIGHTLEAD

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