Electricity (Disconnection and Low Fixed Charges) Amendment Bill

Mr Chairperson—

Sitting suspended from 6 p.m. to 7.30 p.m.

This bill has an interesting title: the Electricity (Disconnection and Low Fixed Charges) Amendment Bill, but one has to wonder whether the bill is true to its label. If we reflect back on the introduction we had from the Minister David Parker on the bill, I think he said himself that it would not be expected to achieve a great deal and that it is principally regulation. It is hardly a surprise to members on this side of the Chamber that the Minister is introducing more regulations; the Government seemingly has a fixation with them. Someone was telling me the other day, down on the West Coast, that when he was in the army they had a saying: “If it moves, salute it; if it doesn’t, paint it.” The present Government has a different solution, which seems to be to regulate it.

This is a time of unprecedented wealth, none of which is Government-created. This Government over the last 8 years has overseen a complete cycle of wealth that was generated by the Nats’ policies of the 1990s—

💬 Hon Members: Oh!

Oh, yes, it was the Nats’ policies; that is where the money came from. The money was seized by the ever-grasping hands of Labour, which spent it in establishing big Government. Labour largely distributed the money without regard for infrastructure, productivity, or future wealth development.

Now, the cycle is back into increased mortgages, increased fuel costs, increased food costs, and hugely increased electricity costs. I have some figures here. Residential power prices have risen 48 percent in the last 5 years—48 percent compared with 25 percent for industrial and commercial users.

💬 Phil Heatley: How much?

It is 48 percent for residential users and 25 percent for industrial and commercial users. The big problem in New Zealand with regard to electricity prices is that we have a scarcity of supply—and we will be speaking about that in other parts of the debate on this bill—which has driven up power prices. Power stations just have not been built fast enough in the last few years to cope with the growing population and growing economy, and the subsequent increase in demand.

💬 Peter Brown: What’s that got to do with this bill?

Well, we are talking about the title of the bill, and we are talking about electricity disconnection and low fixed charges, so charges are in there, I tell Mr Brown. Charges are in there.

This winter will be particularly interesting. At the moment lake levels and inflows are approaching 1992 levels. The Taranaki Combined Cycle Power Station at Stratford is still out of action. The system is at its limits at the moment; demand always goes up in winter.

We will be speaking, as I say, on other parts of this bill, but I would just like to remember the tragic and untimely death of Mrs Muliaga last May. This death occurred in a situation that should have been avoided; it should not have come about. I mention it as a reminder to all of us of the genesis of this particular piece of legislation. We all went into shock, because the circumstances were needless and it should not have occurred in New Zealand. Much was made of the communication disconnect that occurred. The really hard-hitting bit, though, was that Mrs Muliaga’s death lifted the lid on an aspect of New Zealand life that most people would not want to know about—an aspect of an unfeeling, cold, corporate countenance. That this matter was addressed promptly was as much a tribute to public dismay as it was to media attention. The corporates addressed the situation and, although I am not a betting man, I would be prepared to wager that most of the energy companies have protocols in place to cover the distressing circumstances of last May to prevent them from ever occurring again. If that is the case, why do we have this legislation, and why is it coming so long after the event? Thank you.

Clause 1 agreed to.

Clause 2 Commencement