Auchinvole Chris: Debate on Crown Entities Public Organisations and State Enterprises — In Committee 
Text is incorporated into the Bound Volume 
Auchinvole Chris: Debate on Crown Entities Public Organisations and State Enterprises — In Committee 
[Sitting date: 29 June 2010. Volume:664;Page:12238. Text is incorporated into the Bound Volume.] 
CHRIS AUCHINVOLE (National—West Coast - Tasman) 
: 
 I will speak on Meridian Energy. Meridian is a very high performing State-owned enterprise. I have always been impressed with the people I have dealt with at that organisation with the work that they do with their commitment and with their professionalism. Meridian is the largest State-owned electricity generator in New Zealand. In total its generation capacity is 2600 megawatts and it produces on average 30 percent of electricity in New Zealand. It has over 180000 customers. 
Hon John Carter 
: How does the member know all this stuff? 
CHRIS AUCHINVOLE 
: Because I work with them. Meridian takes its responsibilities to New Zealand and to the environment very seriously. It owns operates and generates electricity from hydro stations on the Waitaki River in the South Island and at Lake Manapouri in Fiordland National Park. 
It is also an experienced developer of renewable energy projects. Indeed it is the largest producer of renewable energy in New Zealand. It is to be commended for its professional response to the changes to electricity legislation which will see them continuing as the predominant renewable energy generator with concomitant responsibility in price path setting. 
Hon Trevor Mallard 
: Who wrote this? 
CHRIS AUCHINVOLE 
: It is in my handwriting. Meridian’s approach to long-term development is that it is committed to meeting its share of the growing electricity demands of New Zealanders. I believe that it is well in line to achieve this. 
Let us turn to some of the comments that came from David Cunliffe. I ask where he has been for 9 years. 
Hon Trevor Mallard 
: That’s not in handwriting. 
CHRIS AUCHINVOLE 
: Indeed I ask where Mr Mallard has been. The Government’s position on public assets is clear and unchanged. The National-led Government has made a very firm commitment to New Zealanders that there would be no asset sales in this term of office and that if that policy changes it will be clearly signalled and campaigned on for the 2011 election. I ask what Labour does not understand about that position. Shareholding Ministers have not asked for any work to be undertaken in this area. 
Hon Trevor Mallard 
: Oh! 
CHRIS AUCHINVOLE 
: No they have not at this point. Anything beyond—[ 
Interruption 
]; here we go—is pure speculation. 
Mr Cunliffe spoke about pricing. Mr Goff had 9 years to implement his plan for dividends to be used to reduce power prices. What happened between 2000 and 2008? What happened when Labour was on this side of the House? Increases occurred at about 66 percent across the board and the Crown took $3.5 billion in dividends. I can remember previously watching a Minister with responsibility for electricity with a “wink wink nudge nudge” say that as the lakes were going down in the South Island—goodness me—the prices would soon be going up. 
Pricing is an operational matter for State-owned enterprises to respond to. The dividends paid by State-owned enterprises have no impact on the prices they charge their customers. 
Hon Trevor Mallard 
: Rubbish! That is absolute nonsense. 
CHRIS AUCHINVOLE 
: Which comes first? State-owned enterprises set their prices to try to achieve a commercial return from their businesses. That is in keeping with the State-Owned Enterprises Act which requires them to operate as successful businesses and to be as profitable and efficient as possible. The Government’s job as the shareholder of State-owned enterprises is to monitor their performance and get them working efficiently for the benefit of taxpayers. Every dollar of profit earned by a State-owned enterprise increases the Crown’s operating balance and we are working on initiatives to improve financial performance which include improving the commercial expertise of boards; setting clear expectations in relation to performance including financial performance; and holding boards accountable for achieving those initiatives. Those are good solid business practices; they are things that Governments do. That is what the previous Labour Government should have done but chose not to do. That Government missed its opportunity and Labour is now being critical of the National-led Government for doing what should have been done while Labour was in power. 
Let us have a look at the purposes of generation in the South Island. If we look at the upper half of the South Island—from North Canterbury to Marlborough Nelson Tasman and the West Coast—we see that that region produces only 23 percent of the power it uses. There is a lack of South Island generation. Electricity demand in the South Island has grown significantly more than new generation developments. That has to change.