Connell Brian: Debate on Crown Entities Public Organisations  and State Enterprises — In Committee 
Connell Brian: Debate on Crown Entities Public Organisations  and State Enterprises — In Committee 
[Volume:631;Page:3066] 
BRIAN CONNELL (National—Rakaia) 
: 
 I want to take time to talk about the financial review of Meridian Energy. I start by saying that Meridian Energy is the largest electricity generator in New Zealand meeting something like 30 percent of New Zealand’s total electricity requirements. For the financial year under review Meridian Energy made an after-tax profit of $218.2 million which is an increase of $85.3 million on the previous year. I have taken the time to outline those figures because it is clear that Meridian Energy is the major player. In the financial review process one of the key issues that was identified by the chief executive officer was this: “In terms of electricity supply this is the tightest winter New Zealand has ever had.” 
Hon Pete Hodgson 
: Oh rubbish! 
BRIAN CONNELL 
: His remarks—and I hear somebody in the House has already rubbished his remarks again—were not related specifically to storage levels but rather addressed the overall supply and demand balance of our power system. Storage levels as Mr Tremain has already pointed out were low and are still low even after the rain that we have had. But the key issue is that it is our supply and demand of electricity that is under threat. The chief executive of our biggest generator put New Zealand on notice and said that unless we took action we faced blackouts. Blackouts for New Zealand as an investor destination would be an absolute disaster. Whether he is right or wrong when the chief executive of the biggest generating company in the country is saying that there is an issue of confidence. What was the Government’s response? 
Hon Pete Hodgson 
: That is rubbish. 
BRIAN CONNELL 
: Already I hear “Blackout Pete” saying it is rubbish. But that is not the truth of the matter. The Government’s response and that of the Electricity Commission was that Dr Keith Turner the Chief Executive of Meridian Energy was being an alarmist—that he along with other commentators who were saying the same thing were being alarmists. That came from the Minister of Energy whoever that is. Who is the Minister of Energy? 
Hon Member 
: It’s not you buddy! 
BRIAN CONNELL 
: No it is not me I concur with the member on that. I do not know who it is but let us say that— 
Dr Jackie Blue 
: David Parker. 
BRIAN CONNELL 
: Oh it is David Parker. Sorry but I would be forgiven for not knowing because they move the chairs of the  
Titanic 
 around a lot on that side of the House. Remember he was the Minister then he was not and now he is again. So let us get on with the issue. The Electricity Commission also came out and stated that the chief executive was being an alarmist. This is a commission that is so young that it still asks the Government to do up its shoelaces before it will make a decision. Keith Turner on the other hand has been in this industry forever. When he stands up and puts New Zealand on notice we in the National Party take notice. 
Hon Pete Hodgson 
: Will the member take a question? 
BRIAN CONNELL 
: Maui gas is running out—the Minister can take a call when it is his turn but in the interim will he just shut up and let me get on with it. Maui gas is running out because this Government has sat on its hands for so long and did not and will not deal with the Resource Management Act. This country now has electricity generation issues. All the chief executive officers of our major generation companies are in concert when they say that the demand for electricity will be outstripped by demand— 
Hon Clayton Cosgrove 
: Get it right. Take it slowly. 
BRIAN CONNELL 
: The demand for electricity will be outstripped by supply. 
Hon Harry Duynhoven 
: No the other way around. 
BRIAN CONNELL 
: The other way around yes. The supply will be outstripped by demand in the year 2010. The issue is still one of critical importance. That is 3½ years from now. Three and a half years from now we will have a critical lack of capacity. The impact that that will have on this country as an investment destination as I have already said will be huge. The Government simply cannot grasp that the fundamental issue is that we do not have enough generation capacity.