Lotu-Iiga Peseta Sam: Questions for Oral Answer — Questions to Ministers 
Lotu-Iiga Peseta Sam: Questions for Oral Answer — Questions to Ministers 
[Volume:659;Page:8448] 
2.  
PESETA SAM LOTU-IIGA (National—Maungakiekie) 
 to the  
Minister of Energy and Resources 
: What were the main findings of the ministerial review into the electricity market? 
Hon GERRY BROWNLEE (Minister of Energy and Resources) 
: 
 The ministerial review which was conducted by a six-person expert panel was a stunning indictment on the previous Government’s management of our electricity system. The review found that the rate at which residential prices had risen over the last 8 years had been excessive. It found that they were way ahead of what is required to meet new generation requirements and it found that the way in which dry years have been managed was deficient and that governance arrangements needed substantial improvement. The Government is now acting to clean up this mess. 
Peseta Sam Lotu-Iiga 
: What is the Government doing to address the problems found by the ministerial review? 
Hon GERRY BROWNLEE 
: The Government will make a suite of changes to the electricity system. The changes will improve competition in the market which should constrain future price increases. I am heartened by Consumer New Zealand’s comments this morning that the reforms will improve competition and will benefit consumers. The changes will also improve security of supply and dry-year risk. One mechanism to do that will be to require electricity companies to compensate consumers in the event of national conservation savings campaigns. 
Chris Hipkins 
: Will his proposals reduce before next winter the power bills of hard-working Kiwis already struggling to meet the increased cost of living; if not why not? 
Hon GERRY BROWNLEE 
: Since the review of the electricity system began there has been a very dramatic flattening-out of electricity price. What we saw before that over 8 years of a Labour Government was power prices rising at three times the rate of inflation. I am confident we will not see that in the coming 12 months. 
Chris Hipkins 
: I raise a point of order Mr Speaker. The question was relatively straightforward and it asked the Minister whether the proposals that he has brought to the House will reduce the power bills of hard-working Kiwis. He did not address that in any way. 
Mr SPEAKER 
: In answering the question the Minister said that since the review had been announced prices had flattened out. I accept the point the member is making that that was not the question. I invite the Minister to answer the question that was asked. 
Hon GERRY BROWNLEE 
: I will give this answer. The member asked whether this will see the prices of hard-working New Zealanders fall in the next 12 months. 
Hon members 
: Power prices. 
Hon GERRY BROWNLEE 
: Power prices OK. I responded to him that those prices are excessively high now because his Government saw power prices rise at a rate of three times that of inflation over 8 years. I tell him that our record so far is that we are nowhere near that level. So my response is that I expect power prices to be relatively flat in the next 12 months. 
Chris Hipkins 
: Why should hard-working New Zealanders have any more confidence in his promise that more competition will lead to lower power prices than they did when the same promise was made by Max Bradford 12 years ago only to be proved spectacularly wrong? 
Hon GERRY BROWNLEE 
: What is most interesting is that although the power system that we currently have was put in place in 1999 for the next 9 years we had a Labour Government administering it and it never ever got on top of it. In a short 12 months we have.