The paper reported that ‘claims of political blackmail and double crossing pose the most serious threat to the Government’s controversial power privatisation plan.’

According to the report MPs from rural and regional areas see a perceived attempt by the Government to link the privatisation to spending in the country.

“They believe Premier Morris Iemma committed a breach of faith when the State Budget failed to contain a response to the recommendations of the Rural and Regional Task Force Task Force.

MPs are said to be outraged at a referral to the task force recommendations in the Budget papers which read: ‘The Government will be making announcements about enhanced infrastructure investment in rural and regional NSW in the context of utilising proceeds from its electricity reforms.’

The Sun Herald quoted an insider as saying ‘this was never tied to privatisation and to link the two now smacks of blackmail’.

It’s a sentiment being openly expressed in Lithgow Council.