"Selling the electricity network is wrong," the advertisement says. "Selling it to another country is just not on." Electricity privatisation proposal under scrutiny: Mike Baird. Credit:Brendan Esposito On Monday, a senior Labor source suggested that the purchase of electricity assets by a Chinese-government owned firm was a national security issue. "I would be very, very surprised if the security agencies would be comfortable with this," the source said, noting that one business up for lease, high voltage transmission business Transgrid, "can turn Canberra off at the flick of a switch". But Mr Constance accused Labor leader Luke Foley and the union movement of engaging in "dog-whistle politics".

"We're seeing enormous interest from right around the globe in the leasing proposal - that's why we took market soundings," he said. Accused of starting "dog-whistle politics": Opposition leader Luke Foley. Credit:Michele Mossop The attack came as it was revealed the Australian Securities and Investments Commission was examining investment bank UBS after revelations Premier Mike Baird's office sought to influence an analyst's report on the electricity privatisation. UBS is one of two banks handling the proposed electricity privatisation deal for the NSW government. The report initially said the transaction would be "bad for the budget" but was reissued with the statement removed and favourable information included. The bank and Mr Baird say this was done independently.

ASIC chairman Greg Medcraft said the regulator has asked for information about the "Chinese Wall" designed to separate the bank's advisory and research arms, following concerns raised by shadow Treasurer Michael Daley. On Monday, Mr Constance said that "nobody is in the front running" for the assets and that "all investors will have to adhere to the [Foreign Investment Review Board] requirements". In December 2013, federal Treasurer Joe Hockey allowed State Grid Corp to buy stakes in local electricity supplier SP Ausnet and energy infrastructure company SPI Australia. In ministerial diary summaries published earlier this year, Mr Constance disclosed a meeting with State Grid Corp executives on November 19, described as an "introductory meeting and discussion on State Grid investment in NSW". However, he has refused to confirm if the discussions were about the potential sale of NSW electricity businesses.

If Mr Baird wins Saturday's election, he has promised to privatise all of Transgrid and 50.4 per cent of distributors Ausgrid and Endeavour Energy. CFMEU national secretary Tony Maher questioned why the NSW government "is not forthcoming" about potential buyers a week out from the election. "The public deserves to know before Saturday about whether or not there is a good chance of the grid corporation of China owning the poles and wires," he said.