Energy Safety Review Bill

I move, That the Energy Safety Review Bill be now read a second time. In doing so I want to thank the chairperson of the Commerce Committee, Katherine Rich, and the members of the committee, especially Maryan Street, for the work they did on considering the original bill, including hearing and responding to comments received on it. I also thank all those who made submissions to the select committee for their input into helping to improve this bill.

The bill, with amendments made by the Commerce Committee, will amend the Electricity Act 1992, the Gas Act 1992, the Health and Safety in Employment Act 1992, and the Ministry of Energy (Abolition) Act 1989. Energy is critical to the economic growth, prosperity, and social well-being of all New Zealanders, and the Energy Safety Review Bill represents an ongoing commitment by the Government to the safe delivery and use of electricity and gas. The bill will ensure continued access to safe and reliable energy for our everyday use and for use in industry, and will provide for skilled practitioners and electricity and gas supply systems that minimise the public’s exposure to risk.

The bill will amend the Electricity Act and the Gas Act to include clear purpose statements. The purpose statements for both Acts, as set out in the bill, include “to protect the health and safety of members of the public” and “to promote the prevention of damage to property”, and for the Electricity Act specifically “to provide for the regulation of electrical workers.” In particular the bill updates the occupational regulation provisions of the Electricity Act: the registration and licensing of electrical workers, the procedures for addressing complaints against electrical workers, and enforcement provisions.

The electrical worker registration and licensing regime plays a key role in consumer protection. When people require or want electrical work to be done, they and their families need assurance that the electrician is competent and the work will be done safely. The bill provides for the continuation of registration and licensing as the means of providing that assurance. It will also enable the public to easily recognise a licensed worker by way of publicly available registers, in line with the licensing regime for building practitioners under the Building Act 2004.

The bill originally proposed the replacement of the existing registration and licensing regime with a licence-only regime, in line with that for licensed building practitioners, but as recognition of the investment made by electrical workers to obtain this qualification, the Commerce Committee has recommended the retention of registration. As a qualified electrician myself, I know that those in the electrical trade highly value their registration, and I know that they will appreciate the select committee’s acknowledgment of this fact.

The bill, however, will provide for more flexibility in the registration and licensing regime. This flexibility will allow for specialist registration categories, and for competencies to be specified for the particular work authorised under each registration category. This will save workers in specialised fields from having to acquire and maintain competencies that they do not need in their work. I am sure, though, that the existing electrician class will continue to be the mainstay of the trade.

A significant feature of the bill is the improvement of the link between competence and licensing. The bill amends the Electricity Act to provide for competency-based licensing, which will ensure that before a worker is issued a new licence he or she is competent in specified areas such as new equipment and changes in standards and regulations. Most workers already regularly update their knowledge base and skills set. The new competency-based licensing regime will ensure that the public can be assured that the electrician they hire is fully competent. Importantly for workers, competency-based licensing will be more flexible than the existing refresher training arrangement, allowing it to be better tailored to the needs of individual workers.

I am aware that there has been considerable discussion regarding whether ongoing training requirements might be excessive. To address these concerns, and to provide some balance with the greater flexibility being given to the Plumbers, Gasfitters, and Drainlayers Board, the bill includes guiding principles that the board must follow. The bill prescribes more explicit requirements for the board to undertake consultation with relevant stakeholders, and requirements for the board to obtain the Minister’s approval on key matters. For example, registration categories will be determined by the board in consultation with those who will be substantially affected, and the registration categories will require approval by the Minister. This approach provides added assurance that the board has followed due process, and has defined appropriate registration categories only after sound analysis and ministerial scrutiny.

The bill will also allow the Electrical Workers Registration Board to delegate some of its registration and licensing powers to the Plumbers, Gasfitters, and Drainlayers Board. For example, gasfitters should be more easily able to gain competence and registration to do the particular electrical work needed to install the increasing number of gas appliances that need mains electricity supply or that incorporate electronic controls, rather than having to call in another tradesman. This has to be beneficial for consumers.

The bill also proposes a small amendment to the membership of the Electrical Workers Registration Board. The board will be required to have at least two board members who have current practising licences and at least one member who has electrical industry knowledge, so as to provide expertise on employer licence issues.

The bill will amend the Electricity Act and the Gas Act to require owners of electricity generators greater than 10 megawatts, and owners of electricity and gas distributions systems to have in place a safety management system to ensure there is no significant risk of serious harm to the public, nor of significant damage to property. The specific requirements of safety management systems will be set out in regulations. The bill provides that the regulations must include requirements relating to the systematic identification of existing and new hazards, the regular assessment of each hazard identified, the documentation of the safety management system, and its audit. The Government’s requirement for safety management systems acknowledges modern risk management concepts, and has widespread industry support.

I am very pleased to support the bill, which will improve the safe delivery and use of electricity and gas. We have an excellent electrical and gas safety record in New Zealand, and the improvements that this bill introduces will ensure that our excellent safety record continues. The bill will provide greater assurance of safety to consumers requiring electrical work to be undertaken. It will make it easier for tradespeople to gain competencies that are relevant to their particular tasks, and for plumbers and gasfitters to gain relevant electrical skills. The bill was developed with substantial industry involvement, and I again thank the Commerce Committee for its excellent work. The amended bill comes back with the unanimous support of the committee, for which I am very grateful, because the bill did need some work when it came in. I commend this bill to the House.

Debate interrupted.

The House adjourned at 9.59 p.m.