Calls for federal takeover of Snowy - Breaking News - National - Breaking News

Deputy Prime Minister Mark Vaile has accused NSW of crying poor over its lost windfall from the collapsed Snowy Hydro sale, as calls increased for the federal government to buy out the states' interests in the iconic company.
Two NSW ministers have urged the federal government to buy NSW's and Victoria's combined 87 per cent stake in Snowy Hydro.
Prime Minister John Howard scuttled the proposed sale last Friday when he announced the commonwealth would not proceed with the sale of its 13 per cent stake, prompting NSW and Victoria to also withdraw.
NSW Finance Minister John Della Bosca and state Treasurer Michael Costa say Mr Howard should now buy out the states' interests.
This would keep Snowy Hydro public while also giving the NSW government a war chest as it prepares for an election.
"If (Mr Howard) wants it to stay in public ownership, the only course of action that seems to me to make any sense is for the commonwealth to purchase NSW and Victorian shares," Mr Della Bosca told the Nine Network.
Mr Howard has ruled out a federal buyout.
NSW Premier Morris Iemma last week said his government needed the expected $1.3 billion in sale proceeds for schools, hospitals and roads.
But Mr Iemma insisted the sale's collapse would not affect the state budget, to be handed down on Tuesday.
Greens leader Bob Brown said he would not support a federal takeover of Snowy Hydro because this would make it easier to sell.
"Putting it in the hands of a future Labor or coalition government in Canberra is reducing, not increasing, its security (against privatisation)," Senator Brown said.
Mr Vaile accused the NSW government of mismanaging its finances while crying poor at the loss of its anticipated windfall.
Mr Vaile said the state government had taken a unilateral decision to sell its Snowy interests and must face the consequences of its decision on Friday not to proceed.
"Let's not forget the enormous benefits that have accrued to state governments across Australia as a result of changes in the taxation system, the revenue flows, the growth of the revenue flows as a result of the GST," he told the Ten Network.
"The states are not short of a dollar. They need to manage (their finances) better, that's our view."
Resources Minister Ian Macfarlane said the collapse of the Snowy sale had no implications for the full privatisation of Telstra, which the government hopes to complete before the next election.
"I think the issues relating to Snowy were particular to Snowy," he told the ABC.
"I think the Snowy decision reflected very strong public opinion that the Snowy is iconic."
In the NSW town of Cooma, a planned protest became a celebration as 400 people gathered in Centennial Park to mark the sale's collapse.
Snowy River mayor Richard Wallace said he wanted the NSW government to guarantee it would never sell its stake in Snowy Hydro.
"I've called on them to set it in concrete that they won't try to sell it in the future," Cr Wallace said.
"We've had a victory for now but the fight goes on."
© 2006 AAP