New South Wales Labor promises to cut state debt by $11 billion without selling power assets

Treasurer Daniel Mookhey says dividends from the state's power network stakes would be used to pay down debt over 10 years.

Confirmed

The New South Wales (NSW) Labor Government has promised to cut state debt by $11 billion over 10 years if it wins the next election. The plan does not involve selling anything. Instead, the state would use dividends from its part-ownership of power network companies Ausgrid and Endeavour Energy. Dividends are a share of a company's profits. That money would go into a fund that pays for public servants' superannuation. Right now the state borrows to top up that fund. Treasurer Daniel Mookhey said the plan means NSW would not have to borrow billions of dollars a year for it "for at least the next seven years". He said it would save about $275 million a year in interest. Labor also says it would pass a law to stop the power stakes being sold in future. The Coalition has not yet responded. Less debt means less money spent on interest, leaving more for schools, hospitals and roads.