SA: Premier Olsen unlikely to have a happy New Year

AAP General News (Australia)
12-20-2000
SA: Premier Olsen unlikely to have a happy New Year

By Sam Lienert

ADELAIDE, AAP - South Australian Premier John Olsen could be forgiven for not wanting
to hurry back from state parliament's summer break.

Mr Olsen's Liberal minority government has consistently trailed in polls and been forced
to deal with an increasingly strong bloc of independents, who hold the balance of power
in both houses.

The number of independents in the lower house grew from two to four when two government
MPs recently left the party - one expelled and one defected - leaving the government with
22 lower house MPs and the opposition with 21.

During the past month, the four independents combined with the Labor opposition to
throw a government bill to privatise SA Lotteries out of parliament before it was even
debated.

The independents also grouped to help force the government to cap the number of gaming
machines in the state, another move which prompted questions about the government's ability
to control the legislative agenda.

Mr Olsen, who must hold an election by March 2002, has also had to face persistent
flak over his government's handling of what it has hailed as the major achievement of
its term - the privatisation of electricity supplier ETSA.

The long-term ETSA lease, which raised $5.3 billion for the state, was passed early
this year after a long parliamentary battle, with the help of two opposition upper house
MPs who left the ALP over the issue.

The privatisation, which Mr Olsen promised he would not carry out before backflipping
after he was voted in, enabled the government to rejuvenate the economy but angered large
sections of the electorate.

It also twice embarrassed the government.

In June, Treasurer Rob Lucas was forced to introduce urgent legislation to correct
technical errors in the initial Act which would have cost one of the private companies
involved about $20 million.

Then, last month, Auditor-General Ken MacPherson released a report heavily critical
of the government's handling of the deal, saying consultants started work before their
contracts were finalised and background checks on bidders were inadequate.

The government is expected to again come under attack from Mr MacPherson early next
year when he releases a report into a controversial upgrading of Adelaide's Hindmarsh
Stadium.

The costly revamp, for seven Olympic soccer matches, was budgeted at $8 million but
ended up costing $32 million and has been the subject of a nine-month inquiry.

Mr Olsen is certain to face a stern test when he does decide to call an election, surveys
showing voters are likely to maintain, or even increase, the number of independents in
parliament.

The opposition has also recruited several high profile candidates including former
Lord Mayor Jane Lomax-Smith to challenge the government in marginal seats.

The Australian Democrats have also said they are confident of winning one or more lower
house electorates, with polls showing the party could win the Adelaide Hills seat of Heysen
from the Liberal Party.

AAP scl/sl/cjh/bwl

KEYWORD: YEARENDER SA

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