Brownlee Gerry: Electricity and Gas Industries Bill — In Committee 
Brownlee Gerry: Electricity and Gas Industries Bill — In Committee 
[Volume:620;Page:15730] 
GERRY BROWNLEE (Deputy Leader—National) 
: 
 That may seem like a very reasonable contribution from the Minister. People listening to the radio or sitting in their offices around Parliament would have thought that was a nice peaceful little explanation from the Minister and I suppose it gives us an indication of a Government that is thinking about these things. But the reason there has been no substantial investment in renewables for generation in the last 3 years is that it is so hard and what is left to people is so unreliable. The Minister would have to concede that if one wanted to do a hydro project in this country—and hydro power is a renewable form of energy—it is almost impossible. He would also have to concede that if one wanted to build a wind project in this country the economics make it almost impossible. Big companies like the State-owned generators can carry out the nice little exercise of building wind farms everywhere but everyone knows that on the best of performances they will be barely 40 percent efficient. So why would a lines company want to risk its consumers’ or its owners’ capital on such a dodgy venture? When it comes to biomass energy or something else—when it comes to any form of emission—we know immediately that the Resource Management Act will stand squarely in the way. 
The fact that nothing has happened in the last 3 years since the Minister allowed lines companies to look at unlimited amounts of generation from renewables is that all the other conditions that have to be in place are not in place. It does not matter how many times the Electricity Commission meets sits and makes decisions until those other factors are taken care of it is most unlikely that we will see any sort of substantial investment from those companies in new generation capacity. 
 The Minister said it is interesting that one of the country’s biggest line companies wants to buy only generating assets that exist. Well it wants to do that because it knows how hard it is to get new generation established. We have seen in the last 12 months the falling over of the very large project on the Waitaki River and although one or two new wind farms have opened up they are just nice little green adjuncts to the generating capacity of the big companies. 
I ask the Minister whether he might comment on corporate separation. What exactly is the purpose of having a statement about corporate separation in this bill and for that matter the arm’s-length rules that relate to the preparation of the contracting of and the purchasing of reserve generation? We need to understand that this Government is proposing to smooth out any possibility of interruption to electricity supply by creating reserve capacity. Well how do we create reserve capacity when already there is more demand than capacity to deliver? 
Hon David Cunliffe 
: Read the State-Owned Enterprises Act. 
GERRY BROWNLEE 
: What we will see over a period of time is the Government encouraging State generators—and there is good evidence of it happening now—to create that reserve capacity effectively by rationing through price. It is the consumer who will pay for that. I heard a member on the other side of the Chamber interject: “Read the State-Owned Enterprises Act.” I ask his Minister to explain how one’s reading the Act is relevant or helpful in understanding how this committee of well-meaning people is going to work to get reserve capacity in this country. 
Hon David Cunliffe 
: Would the member like me to take a call? 
GERRY BROWNLEE 
: I would very much like the member to take a call.