Norman Russel: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeNorman Russel: Questions for Oral Answer — Questions to Ministers[Sitting date: 11 March 2014. Volume:697;Page:16466. Text is incorporated into the Bound Volume.]4.Dr RUSSEL NORMAN (Co-Leader—Green)to the Prime Minister: Does he stand by his Government’s policies?Rt Hon JOHN KEY (Prime Minister):Yes.Dr Russel Norman: How can he stand by his policies when it is his policies that have driven up the average yearly household power bill by $360 a year since he became Prime Minister or as he said in his earlier answer by 20 percent?Rt Hon JOHN KEY: I think it is firstly important to understand what has been driving any increase in power prices and it has largely been expenditure either by Transpower or lines companies. The member may not like that and I actually accept that consumers will not necessarily like paying a little bit more but I also remember the howls of anguish and concern from Aucklanders for instance when essentially Transpower failed because of the problems out in its station. So in the end we do have to spend money upgrading our infrastructure. What I do know though and what I have seen are reports on how much more consumers will pay under a Labour-Greens power policy and that is provided by analysts who have looked at their policy.Dr Russel Norman: Does the Prime Minister realise that in fact most of the power price rises are coming from the big electricity power companies—the five big oligarchies—that are controlling the electricity sector; and why is the Prime Minister so vehemently defending the big power companies and their price hikes when around the country families are receiving letters in the post telling them that their bills are about to go up even more sometimes by as much as 24 percent?Rt Hon JOHN KEY: I will start off I think by saying that the member himself would have to accept if he is being objective that a 24 percent increase was because the consumers were on the wrong tariff rate and on the same basis some have gone down. But if he wants to talk about the five oligarchies if he ever got to power there would be only one oligarchy and that would be a very interesting place for competition.Dr Russel Norman: Why does the Prime Minister so vehemently defend the big power companies that are driving up the price of power for ordinary New Zealand households?Rt Hon JOHN KEY: I do defend the rights of Transpower and the lines companies to invest in their infrastructure. I think in the end we can either have a grown-up debate about the fact that we need a stronger infrastructure or not. But in fact there is no evidence to support the claim that the power companies themselves are making excessive profits. If they were their share prices would be responding in that direction.Dr Russel Norman: Why is the Prime Minister protecting the big power companies that are stifling innovation stifling competition and blocking lower prices for ordinary Kiwi households?Rt Hon JOHN KEY: Far from blocking competition this is the Government that has introduced a system that allows consumers to switch with great ease and hundreds of thousands have. It is very interesting—the co-leader of the Greens seems to be rewriting his energy policy on his feet because if anyone wants to stifle competition and drive up prices the way to do that is to create one single buyer of electricity which by the way the analysts think will massively drive up prices. And if that is not a wedge through their hearts attached to it may as well be the bill for $500 for his emissions trading scheme—but by the way they will have plenty of time to look at the bill because they will not have a job under a Greens Government.Dr Russel Norman: If the Prime Minister is so convinced that the current market is competitive why are people all around the country receiving notifications in the post that their power bills are set to rise again sometimes by as much as 24 percent even as overall demand for electricity is falling; is this not a classic example of abject market failure?Rt Hon JOHN KEY: No and the fastest way to have market failure is to not have a market which is what the Greens are proposing. Secondly I go back to the points I made to the Leader of the Opposition as inconvenient as they were for him because they tell such a good story. Last year average weekly wages went up 2.8 percent and inflation went up 1.6 percent. This year average weekly wages went up 2.9 percent compared with inflation of 0.9 percent. Correct me if I am wrong but that member Russel Norman was happily supporting the Labour Government while it was producing this chart which David Cunliffe helpfully sent to everybody because I am sure everyone is following him on Twitter. So that is what they got to see—this massive line that looks like I do not know the number of people who want to vote National. It looks like our polls. That is actually the price increases under a Labour Government.