Last Minute Talks, Still No Deal on NSW Power Sell-off

SYDNEY—Debate over the NSW government's controversial plan to privatise the state's electricity sector is underway at the state Labor conference in Sydney.

Eight hundred delegates have gathered for their annual conference where Premier Morris Iemma's privatisation plan is expected to be overwhelmingly voted down.

Unions NSW secretary John Robertson opened the debate late today by moving an amendment to oppose any privatisation over state-owned electricity assets.

Mr Robertson told delegates privatisation would put added stress on families dealing with the rising cost of living.

"We've got working families all over NSW with what they call mortgage stress, if we privatise electricity and don't provide protection for those customers they'll have electricity bill stress as well," he said.

"We expect more from Labor governments, we expect Labor governments to look after the workers that get them elected."

This drew applause and cheers from the delegates.

Minister for Ageing and Disability Services Kristina Keneally, Education Minister John Della Bosca and Deputy Premier John Watkins have all spoken in favour of privatisation.

Mr Iemma was not expected to speak again on privatisation after he gave a lengthy address in support of the $15 billion plan before the conference this morning.

He told delegates his privatisation plan was a balanced package that would protect workers and allow the government to spend money on other infrastructure projects such as hospitals, schools and public transport.

"(It's) not easy, not comfortable, not simple, but right," Mr Iemma said.

"And if Labor governments are here for anything it is to make the tough decisions to deliver reform, change and do what is right."

Two hours of closed door talks between the government and union heavyweights this afternoon failed to broker a last minute deal on the sell-off plan ahead of the formal debate.

The length of discussions has required the conference's agenda items to be pushed back, and any vote on the privatisation plan was not expected until later in the meeting.