SYDNEY—NSW Premier Morris Iemma has avoided a showdown with his caucus colleagues, gaining their support for his electricity sell-off on the proviso he makes peace with unions and Labor party officials.
Heated scenes were expected at this morning's caucus meeting at NSW Parliament, when up to 20 MPs were tipped to confront Mr Iemma over his plans to defy the NSW Labor Party and sell off the electricity sector.
But after just 80 minutes, punctuated at times with applause and cheers, a smiling Mr Iemma emerged from the caucus room in control of his parliamentary team.
"No one disputes the need for reform and the caucus is very happy we're moving ahead," he told reporters.
"We'll exhaust every avenue to go forward together."
While privatisation was debated during the meeting, MPs simply questioned Mr Iemma, instead of moving a motion to force a party room vote on the issue.
It is understood dissenting MPs have contained their anger for now, on the condition Mr Iemma continues to negotiate with the unions and Labor officials on the electricity issue.
Today's caucus win came after a damaging weekend for Mr Iemma and his government at the ALP state conference.
Amid fiery scenes, the premier was booed by his party faithful and his sell-off plans were overwhelmingly rejected by delegates, 702 votes to 112.
One MP told AAP that former minister and Marrickville MP Carmel Tebbutt today warned caucus it could not afford to ignore the party vote.
But Entrance MP Grant McBride, who opposes the sell-off, said MPs also wanted a resolution and were prepared to give Mr Iemma a chance to reach a compromise.
"The party is famous for negotiating resolutions, it's the reason we are the strongest Labor Party in all of Australia," Mr McBride said.
"At the end of the day we find a resolution that works, and the premier has given us that commitment."
Mr Iemma, his deputy John Watkins, Treasurer Michael Costa and Education Minister John Della Bosca will tomorrow meet ALP officials, including general secretary Karl Bitar.
The meeting is the result of a motion moved in the final stages of the ALP conference, after Mr Iemma vowed to push ahead with the sell-off despite party opposition.
It will be the first step towards healing some of the rifts opened by the privatisation stoush.
After his caucus success, Mr Iemma sought to turn the spotlight on Opposition Leader Barry O'Farrell's reluctance to say if he is for or against electricity privatisation.
"It's obvious ... you have never sighted the Owen report (into electricity) because you are too lazy," Mr Iemma told parliament.
But Mr O'Farrell would not be drawn on a position.
"If you decide to buy a house you'll want to inspect the house and look at the plans before you make the decision," he replied.
"And, that's exactly what the public expects a responsible opposition to do."
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