Smith Nick: Questions for Oral Answer — Questions to Ministers 
Smith Nick: Questions for Oral Answer — Questions to Ministers 
[Volume:634;Page:5719] 
12.  
Hon Dr NICK SMITH (National—Nelson) 
 to the  
Minister of Energy 
: Why has the price of electricity increased by over 39 percent since Labour became the Government in 1999 and what changes in Government policy if any will be made to provide additional renewable energy? 
Hon DAVID PARKER (Minister of Energy) 
: 
 Because the so-called reforms of the previous National Government have not resulted in the decrease that residential users were promised at the time. In real terms—that is adjusted for inflation—the increase over the last 7 years has averaged under 3 percent and totalled 18 percent. 
Hon Dr Nick Smith 
: Rubbish! 
Hon DAVID PARKER 
: No it is absolutely true—in fact I will repeat it for the benefit of the member because it is true. In real terms—that is adjusted for inflation—the increase over the last 7 years has averaged under 3 percent per annum and totalled 18 percent. Government proposals to improve electricity market arrangements in order to put downward pressure on prices will be announced with the New Zealand Energy Strategy. This strategy will incorporate a range of measures to support the development of additional renewable energy resources including details of a previously signalled “cap and trade” option. 
Hon Dr Nick Smith 
: Is the reason that New Zealanders have faced huge power price hikes not that this Government through its electricity State-owned enterprises—as noted yesterday—has made a profit of over $1.1 billion so that New Zealanders are being fleeced by this Government not just with high taxes but also with excessive power prices? 
Hon DAVID PARKER 
: No. 
Charles Chauvel 
: When will the New Zealand Energy Strategy become public for consultation and what will it achieve? 
Hon DAVID PARKER 
: The New Zealand Energy Strategy is expected to be released in draft next month for consultation. I have no doubt that this strategy will provide New Zealand with a cost-effective reliable and environmentally sustainable energy system that New Zealanders will be proud of for decades to come. 
Metiria Turei 
: What is the Minister’s view of today’s High Court decision that the climate change effects of Mighty River Power’s Marsden B coal-fired power station project may be considered in granting its consent—a decision that overturns a previous Environment Court view—and is he pleased that this should spell the end of new fossil fuel - burning energy projects in New Zealand? 
Hon DAVID PARKER 
: I have not read that decision so I cannot comment upon it. But it has been made clear by the Government for some time that we prefer and promote renewable alternatives over more thermal generation which produces greenhouse gas emissions. 
Peter Brown 
: Noting that previous answer does the Minister agree that if technology relating to the storage of carbon dioxide was on stream New Zealand would have the ability to turn our vast coal reserves into enough electricity to power New Zealand for over a thousand years at very reasonable cost; if so what is the Government doing to assist research into developing carbon storage technology to help provide for our future needs? 
Hon DAVID PARKER 
: A couple of points there. I agree that if carbon capture and sequestration becomes cost-effective and proven technology the world needs to look at adopting it. It is more important for the rest of the world than it is for New Zealand. The advice I have received is that our renewable alternatives are likely to be cheaper than the use of coal with carbon capture and sequestration. 
Hon Dr Nick Smith 
: Does the fact that the electricity companies owned by the Government doubled their profits to over $1.1 billion confirm the statement by Roy Hemmingway that the reason he was sacked was that he was an independent commissioner who was prepared to stand up against the Government State-owned enterprises in the interests of consumers? 
Hon DAVID PARKER 
: Again the answer is patently “No”. 
Hon Dr Nick Smith 
: Has the Minister noted in the annual report yesterday from Meridian Energy that it endorsed National’s idea for a “cap and trade” system for greenhouse gases endorsed National’s ideas for reform of the Resource Management Act and endorsed National’s ideas for transferable water permits; and now having had New Zealand’s largest electricity company endorse those three significant policy proposals from National why does he not listen to National and accept that we have got it right? 
Hon DAVID PARKER 
: I do note the comments that Dr Turner has made and I agree with virtually all of them. I disagree with the National Party’s characterisation of them as reflecting long-term National Party policy. Indeed it is only in the last week that National has at long last signalled support for Government policy relating to price-based measures in the electricity sector. 
Hon Dr Nick Smith 
: How can the Minister say that Dr Keith Turner is supporting the Government’s policy when Dr Turner specifically criticises the Resource Management Act in his annual report saying that delays in the Project West Wind proposal have added $90 million to its costs and advocating strongly for direct referral to the Environment Court which National has long promoted? 
Hon DAVID PARKER 
: Again the member over-simplifies. I also note from that report Dr Turner’s express approval of the changes the Government has made to the National Government’s prior electricity policy settings—namely the most recent amendments we have made to the Government policy statement and to the section 26 notice to the Commerce Commission both of which will encourage renewables. 
Hon Dr Nick Smith 
: I raise a point of order Madam Speaker. My question was quite specifically about Dr Turner’s comments in respect of the Government’s resource management policy and direct referral. There has been no comment at all on that and the fact is that Project West Wind has gone up by $90 million in price as a consequence of delays. I ask the Minister to address Dr Turner’s concern about the Government’s resource management policies. 
Madam SPEAKER 
: Does the Minister wish to add anything? It is outside the question although it was raised. 
Hon DAVID PARKER 
: I am very happy to because I have the answer for Dr Smith. In respect of the pricing of the Project West Wind proposal that price increase is caused by changes in exchange rates and steel prices. 
Hon Dr Nick Smith 
: Delays—Dr Turner says delays. 
Hon DAVID PARKER 
: No it is not delays caused by the Resource Management Act processes. The delays that are encountered in consenting New Zealand power stations are no different from those experienced in most developed countries. The Resource Management Act is not the bugbear that the member would like to present it as; it is a necessary part of a developed country where we want to minimise environmental effects. 
Madam SPEAKER 
: I thank the Minister.