THE National Party has signed off on Premier Mike Bairds partial electricity sell-off but with conditions and have blocked the sale of country-based Essential Energy, government sources have confirmed.

The proposal, including excluding Essential from the sale, passed cabinet and joint party room with Mr Baird and Deputy Premier Andrew Stoner due to hold a press conference announcing it at 3pm.

The conditions demanded by the Nationals are understood to be related to extra jobs guarantees for power workers.



The deal also includes $5 billion for regional roads, water and health infrastructure.

Mr Baird this afternoon announced that the money would be used to build a second harbour rail crossing which would use rapid transit to travel under the harbour to bankstown.

The government would also look to extend the West Connex to the Anzac bridge in one direction and down to the Sutherland shire and the Illawarra in the other.

Earlier, the Liberal Party room unanimously supported the proposal to sell 49 per cent of the state’s poles and wires with Premier Mike Baird flagging to them this morning that $20 billion in proceeds could be used to fund a second harbour rail crossing, a sports and community fund and road projects.

The National Party met amid speculation it would not endorse the sale of one of four of the electricity networks, country-based Essential Energy, leading to a likely stoush over the matter at a joint Coalition party room this afternoon.



Former premier Barry O’Farrell is said to have told the Liberal Party room that “if the Nats won’t pay full fare, they shouldn’t enjoy a full meal” in reference to the fact Nationals MPs will still want a third of the proceeds for regional infrastructure funding.



Sources said not one MP spoke against the sale in the Liberal Party room.



Liberal minister Pru Goward said she would wear some pain from a sale in her seat of Goulburn but was prepared to do so for the good of the state and the Nationals should do likewise, one MP said.



Mr Baird has flagged a future fund out of the sale, as well as the other projects.



Premier Mike Baird tweeted: “Confident of an excellent outcome for NSW at our joint party room meeting getting underway.”

Originally published as Electricity sell-off to fund new harbour rail crossing