GDF Suez, is taking over Hazelwood Power Station, via merger to form New International Power. Business description states world ranking of 1, 2 or 3 in businesses of LNG, hydro, wind and nuclear power. Curiously, at their website, only thing mentioned for Australia is Sita, waste recycling. Spin off from GDF Suez monster, Degremont Suez, is lead partner in Victorian very mistaken Desalination plant.
In bidding for desal, commissar Brumby only allowed 2 contenders, Degremeont Suez and Veolia, the French privatization duo. Suez started in 1822, privatising garbage, water, energy and all possible utilities. Veolia dates back to imperial decree in 1853 to provide water to Lyon, followed by 50 year concession for all water in Paris. As with Suez, water is a huge money spinner, subsidising privatisation of all public utilities. Make your hair stand on end, read about their winning ways(and astronomical electoral donations) http://projects.publicintegrity.org/water/report.aspx?aid=47 Australian law needs to be changed to prevent registration of this class of transnational business.
History of GdF(Gaz de France) starts in 1946, alongside EDF(Elecricite De France), both nationalised public enterprise utilities. In 2005 public ownership was reduced to 80% because of public listing, raising EU2.5B. GDF Suez merger, promoted by successive presidents Chirac, Villepin and Sarkozy happened in 2008. With respective values of GDF EU40B and Suez EU54B before merger, 80% public ownership actually diminished to 35%. Employees number more than 200,000. Privatised GDF Suez and German E.ON gas were convicted last year for non-compete cartel behaviour, fined no less than EU1.16(A$1.8B)!
New International Power is 70% owned by GDF Suez(also divesting EU4.4B of debt) and assumes ownership of all international business of GDF Suez outside Europe, including Hazelwood.
International Power bought Hazelwood for A$2.35B in 1996, with use by date 2005(public ownership planned to close it by 1991). All employees were paid out by the taxpayer, replacements hired only if they were more than 50 years of age. Obviously they expected it to close until Brumby magnanimously gave them an extension to 2031. Some capital work was needed, $330M, but this had to be provided by us taxpayers.
In July, Mr Brumby was asking Canberra to "buy out" Hazelwood for $2B when it's had 5 more years of operation than expected at purchase time. In March, International Power announced profit rise to nearly $400M, with Hazelwood their best performing asset! Can they seriously expect any kind of compensation for closure of the dirtiest power station in the OECD?
Obviously Brumby has been the perfect client for French mega corporations. But surely it’s time for his ascension to a large corporate throne, somewhere he can't plunder taxpayer welfare money to make private sector look so efficient? How about trains, annual cost in 1999 $300M, since privatisation $2.3B last year, courtesy Connex/Veolia? Is anything cheaper because of so much privatisation and competetition?