The Executive Director of the National Electrical and Communications Association (NECA) Queensland Chapter, Mr Mick Logan has expressed his surprise at reports that the Queensland Government owned Ergon and Energex electricity distributors and regulators were preparing to set up a new business division to enter the electrical contracting sector.

“Given that both Ergon and Energex play a role in approving and regulating the supply of electricity and connections, it’s quite surprising that the Queensland Government appears to be enabling these two organisations to involve themselves with electrical contracting, an industry dominated by small and medium enterprises, ” said Mr Logan.

“NECA’s 2015 Market Monitor, supported by the electrical contracting sector across Australia, has identified that in the commercial and residential portions of our sector where the bulk of the industry participates, up to 93% of businesses operate with 25 staff or less.”

“You can only imagine the impact on these small, private enterprises when a larger government owned enterprise, backed by the taxpayers of Queensland, attempts to muscle into the sector.”

“Such an outcome would lead to reduced competition and ultimately higher prices, once smaller electrical contractors are driven from the market. This is particularly the case across Regional Queensland,” Mr Logan said.

“NECA believes that it’s the Government’s role to regulate the electricity sector and provide the settings for an efficient and sustainable, market-based sector.  I don’t believe that Queensland taxpayers should be funding attempts by Government owned enterprises to compete with private sector electrical contractors.”

-ENDS-

Media enquiries and interviews

Barry Jackson – National Marketing and Communications

E barry.jackson@neca.asn.au

D 02 9962 6904

M 0457 767 328

Notes for editors

1. NECA is the peak industry body representing the interests of electrical and communications contractors Australia-wide.
2. NECA is run by electrical contractors, for electrical contractors.
3. We have 5,000 contracting companies as members – and they in turn employ over 50,000 people Australia-wide.
4. NECA employs almost 350 people across its seven chapters (Queensland, New South Wales, ACT, Victoria, Tasmania, South Australia and Western Australia).
5. The chapters provide NECA members with a range of services including: Industrial Relations, Health & Safety, Legal, Technical, Training, business-support services, product discounts and advocacy representation in Canberra with Government, Industry bodies and Training bodies.
6. NECA wholly-owns its Legal firm, Group Training and the NECA Colleges (in WA) and EcoSmart Electricians – and has joint ventures with a superannuation company (NSW) and one of the national cabling registrars (ACRS).
7. NECA also employ around 2,000 apprentice electricians and provides training to a further 2,000.

For further information go to www.neca.asn.au