Sixty-eight Maitland jobs are at risk if the state government privatises electricity, according to Stop the Sell Off campaign director Adam Kerslake.
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But Maitland MP Robyn Parker has accused the NSW Labor and the unions of running a scare campaign on electricity prices and jobs, and said their claims were not backed by facts.
The government plan is to sell the publicly owned power poles and wires that deliver electricity.
Stop the Sell Off campaigners visited workers at Ausgrid's Maitland depot on Thursday afternoon to speak to employees and listen to their concerns.
Mr Kerslake said the focus of private owners would be to maximise profits at the expense of jobs and higher prices for consumers.
He said all of Maitland Ausgrid's workers could lose their jobs under private ownership.
Mr Kerslake said Ms Parker had failed to stand up for the community's interests.
But Ms Parker said the plan would unlock $20 billion in infrastructure funding, including $6 billion for regional NSW, which she described as a once-in-a-generation opportunity to secure the long-term future of Maitland.
"Employees and regional communities can be confident about their future," she said.
"Our government will protect the jobs of permanent award employees.
"We also need to be mindful that electricity businesses will always require skilled staff to build, maintain and operate the NSW electricity networks."
Mr Kerslake said lessons should have been learned from privatisation that had occurred in other states.
"Every state that has sold their electricity poles and wires has seen higher prices for consumers, poorer service standards and cuts to jobs, especially in regional areas," he said.
"The experience in Victoria following privatisation was massive job losses due to the new private owners cutting back on major investment and maintenance."
Ms Parker said she wanted feedback from the community on the proposal.
"Premier Mike Baird has released a discussion paper on the Rebuilding NSW plan and the proposed partial lease," she said.
"I am currently seeking feedback from the Maitland community on the discussion paper and how the government can help businesses and communities to better plan for the opportunities made available as a result of the new infrastructure investment."