Iemma dangerously defiant over power privatisation

KERRY OBRIEN: Labor's crisis in NSW following a major rift at its State compromises at the weekend which now threatens to split the party and the Iemma Government. The unions and the rank and file overwhelmingly rejected Premier Morris Iemma's plan to privatise the State's electricity generators. Late yesterday, the Premier defied his own party, announcing his Government would push ahead with the sale anyway.

For a leader whose popularity is at an all time low this unprecedented defiance of ALP policy may yet prove to be political suicide. Even more significantly, it's a clear signal of profound changes in the labour movement and the dwindling influence of unions in the Labor Party.

Deborah Cornwall reports.
Australian Broadcasting Corporation
Broadcast: 05/05/2008
Reporter: Deborah Cornwall

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