ABC

Former New South Wales premier Bob Carr says Prime Minister Kevin Rudd should intervene in the dispute over the state's power sell-off.

The NSW Government wants to privatise the retail arm of the power industry but unions are trying to block the plan.

Mr Carr tried to privatise the power industry in 1997, but the plans were scrapped because of opposition from unions.

He has told ABC TV's Lateline program it is arrogant of the unions to try to dominate policy approved by the Cabinet of a Labor Government.

"I know that Kevin Rudd couldn't tolerate a position where the rules of the Party were being manipulated to rub out of preselection of any one who voted with the Premier and his Cabinet," he said.

"Now that's intolerable."