Village Voice News - National - Strikes over electricity stupid: Costa

The use of industrial action to resolve the impasse over electricity privatisation would be the "ultimate act of stupidity" and is unlikely to happen, NSW Treasurer Michael Costa says.

Unions have threatened widespread industrial action after Premier Morris Iemma pushed forward with plans to privatise NSW's electricity industry, giving parliament notice on Thursday of legislation to enable the sell-off.

The announcement has angered unions, with Unions NSW boss John Robertson saying he was disappointed the premier had given notice of the legislation while negotiations between the parties were ongoing.

Unions were now preparing widespread industrial action against the government, possibly starting next week, Mr Robertson said.

He refused to be drawn on what form the action would take.

But Mr Costa dismissed the threat of industrial action, saying he thought commonsense would prevail.

"To resolve a policy issue by taking industrial action would be the ultimate act of stupidity," he told Macquarie Radio.

"I don't see any indication that is going to happen, but the government will not move away from the position it has outlined.

"We are happy to discuss details. At the end of the day we have to ensure supply."

The treasurer said Mr Iemma had "bent over backwards" to resolve the impasse, but differences between the government and unions were ideological, making them harder to resolve.

"He's had endless meetings to try and resolve the issue," he said.

"It comes down to ideology for a number of people - you can't resolve ideology and we have to move on and govern for the people of NSW."

Mr Costa also played down fears the state's electricity supply could be affected if the unions pressed ahead with their threat, saying the government would "take action" to ensure it did not happen.

"We have powers under essential services legislation," he said.

"We are not going to be threatened or intimidated in these matters."