Iemma, Costa to blame for NSW mess: Libs

September 5, 2008, AAP

Dumped NSW Premier and Treasurer Michael Costa should be made to stick around and dig NSW out of its debt mess, the opposition says.

Mr Iemma was rolled by his factional colleagues on Friday morning and replaced as leader by early Friday afternoon, with as deputy leader.

Treasurer Michael Costa's fate is still uncertain, because Friday's caucus meeting did not consider the make-up of the full ministry. That will now be decided at a caucus meeting on Sunday.

"Morris Iemma and Michael Costa should be required to stick around," Opposition Leader Barry O'Farrell told Sky News, when it appeared that Mr Costa would be dumped as treasurer.

"They've lit the fuse on a $42 billion debt bomb that NSW has to deal with and for both of them to creep off while the rest of us are left, along with our children, to defuse that bomb would simply be irresponsible of Labor.

"By any measure the state has gone backwards. By Michael Costa's own terms this morning the state is staring difficult financial positions in the face - all because they've wasted record revenues.

"They haven't made the tough decisions to ensure the budget stays in surplus."

Mr O'Farrell said Labor was still playing with the same old team.

"With Carmel Tebbutt and Nathan Rees, what is common to them both is they've been part of this same outfit, the same outfit that wasted record revenues in the good times and delivered none of the benefits of that record revenue to communities across this state and across this city," he said.

Unions have so far remained tight-lipped on today's leadership change.

Unions NSW boss , who was one of the loudest voices against Mr Iemma's planned electricity sale, told AAP he had "nothing to say" on the matter.

Mr Hawker said he expected a lot of people within the union movement to be happy about Mr Iemma's departure.

However, he believed the former premier's revised electricity privatisation plan would proceed.

"I expect the sale of the retail arm of the electricity sector will continue," Mr Hawker said.

"I don't see any reason why that will not happen under the new leadership."

Meanwhile, Property developers have wasted no time in their efforts to get the new premier of NSW onside.

Before the election of Nathan Rees as the new Labor Party leader had been officially confirmed, the lobby group Urban Taskforce rushed to praise him.

"The appointment of a new premier inspires hope that the NSW property development industry can recover," it said in a statement.

"The installation of Nathan Rees as premier will be a real circuit breaker.

"Mr Rees' reputation as a quick, clear and tough decision maker is just what the state needs."

© 2008 AAP