Beattie's why generation

The final part of the equation is a plan for dealing with blue collar workers. The public sector has traditionally had too many staff on inflexible working conditions.

Employment and economic growth are strong, as is demand for semi-skilled and trade workers. There is no better time to shift public sector employees away from uncompetitive industrial relations arrangements.

Beattie has made it even easier by offering up carrots. Non-contract staff at the companies being sold to Origin and AGL will be able to retain their EBA conditions for a period. They will also receive an incentive payment for committing to the new owners.

Alternatively, they can stay in the public sector with the Energex network.

In contrast to Queensland, NSW is still locked into an all-or-nothing mindset about electricity privatisation. The Labor Party hasn't recovered from the body blow it took in the mid-1990s when its plan to offload the industry was rolled by unions. The public has been sceptical of ideology ever since.

By drifting towards an anti-ideological extreme, Beattie risks tripping himself up by allowing policy to be driven by the relative need for budget funds. At a principle level, refusing to contemplate selling Queensland's generation assets is utterly at odds with the current sale process.

Publicly-owned generators face intensifying competition from the private sector, including Origin and AGL. In fact, these risks will increase when the electricity retail customers are sold.

While it owns both retail and generation, Queensland has a natural hedge through its shareholding in businesses which sit across the negotiation table from each other.

If Tarong, Stanwell or CS Energy sell electricity too cheaply, the retailer profits but most of the return remains in the public loop. If these generators get it wrong post sale, the windfalls will be pocketed by the private sector.

People like politicians to be pragmatic and listen to their concerns. However, they also crave consistency based on a vision formed according to agreed principles. If Beattie believes that Queensland taxpayers should not be in energy retailing, then he should also support arguments for the sale of electricity generation.