The Prime Minister has announced today that the plan to privatise the Snowy Hydro has been shelved amid massive public outrage.
With the Commonwealth withdrawing its backing NSW Premier Morris Iemma said the deal was almost impossible to proceed with. The plan to privatise Snowy Hydro had received huge media coverage and was expected to easily achieve a full subscription on its initial public offering (IPO).
Prime Minister Howard said the government was now opposed to the sale. "The decision to sell has created a lot of unhappiness in the Australian community, right across the political spectrum,'' Mr Howard told the Sydney Morning Herald.
"I am not such a zealot about privatisation that you sell everything under the sun irrespective of the circumstances.''
NSW Premier Iemma said the Commonwealth's decision made it too impractical to continue with his plans to privatise the Snowy Hydro, though he still stood behind the proposal.