Smith Nick: Electricity (Continuance of Supply) Amendment Bill — First Reading 
Text is incorporated into the Bound Volume 
Smith Nick: Electricity (Continuance of Supply) Amendment Bill — First Reading 
[Sitting date: 23 September 2008. Volume:650;Page:19076. Text is incorporated into the Bound Volume.] 
Hon Dr NICK SMITH (National—Nelson) 
: 
 It is a pleasure to speak to the Electricity (Continuance of Supply) Amendment Bill this evening. It is telling that we have had a major U-turn in policy from the Government in an important area of the energy equation and that is what I want to address in the context of this bill. I have been interested in and would draw on the Minister’s comments about some of the changes in the new energy technologies New Zealand needs to adopt if it is to be able to reverse the trend towards more and more dependence on thermal energy but the comments I will make are in respect of solar water heating.  
Today we saw an absolute U-turn from the Government. National announced in March a policy in which we said that the Government’s policy of having a price control on the solar water grant scheme was a disaster. The bizarre and unusual feature is that for the last 2 years we have seen a decline in the number of solar water installations. The Government has vigorously defended and Jeanette Fitzsimons in the House this evening has vigorously defended the Government’s policy and in a little sneaky press release yesterday did a complete backward flip and adopted National policy. The price control on the Government’s solar grants scheme is a goner. The grant has been doubled to $1000. They have even picked up National’s policy—that is to provide for the inclusion of hot water heat-pump technology. 
The ASSISTANT SPEAKER (Hon Marian Hobbs) 
: Excuse me Dr Smith. I am having difficulty. I have the bill in front of me— 
Gerry Brownlee 
: Point of order— 
Hon MARIAN HOBBS 
: No—can the member answer me. Is he talking to this bill? 
Hon Dr NICK SMITH 
: Indeed I am.  
Gerry Brownlee 
: I raise a point of order Madam Speaker. You will see that clause 4 talks about new sections 62 to 62B being substituted in the principal Act—this is an amendment bill. New section 62 deals with the continuance of supply new section 62A is headed “How certain enactments apply to persons subject to obligation in section 62(3)” and new section 62B is headed “Proposals to supply electricity by alternative means”. It is no surprise to any of us that if we are looking at alternative forms of electricity solar heating for water is a major component. Indeed I can recall numerous speeches made by the Minister of Energy and indeed I think by the Prime Minister on at least two occasions— 
The ASSISTANT SPEAKER (Hon Marian Hobbs) 
: Are you taking a point of order or making a speech? What is your point? 
Gerry Brownlee 
: My point is that Dr Smith is totally in order to talk about as it is said here certain enactments that relate to alternative means of supply. 
The ASSISTANT SPEAKER (Hon Marian Hobbs) 
: I will make a ruling and it may not be very pleasant. Sometimes a game is played in this House. It goes: “I take a noun or a set of terms in the bill and although the subject of this bill is about the continuance of supply lines I take something it says from that and I take off on a totally different topic.” I am afraid that I had to stop another member from another party before who was speaking about general superannuation instead of a special fund and that was quite embarrassing. I am trying to be consistent. 
Gerry Brownlee 
: This bill has nothing to do with the continuance of supply lines. It has everything to do with the continuance of supply. The very purpose of the bill is to enable distribution companies— 
The ASSISTANT SPEAKER (Hon Marian Hobbs) 
: Point taken. 
Gerry Brownlee 
: —to remove the lines and put in alternative energy sources. 
The ASSISTANT SPEAKER (Hon Marian Hobbs) 
: Your point is taken. Dr Nick Smith may talk about those issues but please do not take off on to press releases and other issues that are slightly extraneous to this. 
Hon Dr NICK SMITH 
: Let me make the point very plain. We have in this bill an attempt in an area of energy policy where we have seen one Government failure after another. I know it is embarrassing for Labour but I will highlight the failure of this Government’s policies where we have seen over the last 2 years the biggest drop ever in the number of solar water installations. We have seen a major policy failure.  
If we look back on the record we will see that in 2000 2001 2002 and all the way through to 2006 there was quite substantial growth in the area of solar water heating. The Government has come out with an announcement that is not dissimilar to what have in this bill and suddenly we see a policy called Switch on the Sunshine. Since the Government announced its Switch on the Sunshine policy we have seen the sunshine switched off. We have seen an embarrassing decline in the number of solar water installations and we have a solar water industry that is on its knees and is in crisis. 
Peter Brown 
: Why is that? 
Hon Dr NICK SMITH 
: I will tell the member why. It is because the Government’s policy worked out with the Greens in terms of alternative energy has been a flop and a disaster; it has not worked. Why has it not worked? It is not dissimilar to the provisions in this bill. The Government and the Green Party have attempted to regulate the solar water industry by using price controls.  
Jill Pettis 
: What did you ever do? 
Hon Dr NICK SMITH 
: The member Jill Pettis asks what National would do. 
Jill Pettis 
: What did National do? 
Hon Dr NICK SMITH 
: What would we do? There are three things. The first thing is that National announced a policy in March of a $1000 grant for all households either for a retrofit or alternatively for a new home for solar water systems. The second thing we announced in that policy was that there should be the same opportunity for hot water heat-pump technology to get those $1000 grants. That is the second thing that we announced. [ 
Interruption 
] The third thing we announced I say to Mr O’Connor is that we would get rid of the stupid price regulation which is killing off alternative energy technologies.  
The busybodies in the Labour Party and the Green Party cannot help themselves but regulate. The interesting thing was this. When we announced our policy what did the energy Minister say? He said that it was a mad naive idea. And do members know what he did yesterday? He adopted the policy. 
Jill Pettis 
: I find that hard to believe. 
Hon Dr NICK SMITH 
: I would be happy to table it. Jeanette Fitzsimons who made the announcement on behalf of the Government and who as the Government’s spokesperson on energy efficiency for the last 2 years has been vigorously defending the price controls on platforms up and down the country says no the National Party is wrong. What did Jeanette say yesterday? She said: “Oh we will just take their policy.”  
The question I have for Jill Pettis for Damien O’Connor and for others who have been chipping in is why it is that for 2 years they have wreaked havoc on the solar water industry. They have seen businesses up and down New Zealand close down they have seen a record drop in the number of solar water installations and they have refused to take on board the clear message from the solar water heating industry and from the National Opposition and then a few weeks away from the election they have suddenly done a U-turn.  
Do members know what the excuse was? The press release stated that the Government was dropping the price regulation because it will now be including the heat-pump hot water technologies as one of the alternative energies that will be eligible for the subsidy. That is weak I am sorry. There is absolutely no justification on the basis of including heat pumps to get rid of the price regulation.  
The real answer is that the price regulation policy was always a failure. It was never going to work. The only reason the policy has suddenly been changed a few weeks out from an election is that the Government and the Greens could not spend the next 6 weeks defending the indefensible defending what was a flawed policy.  
I do not mind all of that. I welcome the change of heart. I just would have expected a little bit more straightforwardness from the Greens and the Government as to why they have changed tack and some acknowledgment of the fact that their policy was exactly what we announced in March. With this bill and with the future we have a— 
The ASSISTANT SPEAKER (Hon Marian Hobbs) 
: How wonderful! For the last 2 minutes we will have the bill debated. Please go on. [ 
Interruption 
] Yes I can. Sit down. I have tolerated for 6 minutes the member not talking on this bill. When I tried to point it out he argued through Mr Brownlee that this was talking about solar energy. It was solar energy as a means to a continuation of supply. The member actually diverted. I gave a warning. In order to save the House’s time I have let the member talk off the bill but I feel that the member has trifled with the Chair and the House. 
Hon Dr NICK SMITH 
: I raise a point of order Madam Speaker. 
The ASSISTANT SPEAKER (Hon Marian Hobbs) 
: Are you going to trifle with me? 
Hon Dr NICK SMITH 
: I am simply asking for consistency of rules. I listened very carefully to the contribution made by the Minister Trevor Mallard. In all of his speech he talked in a very generic way around the issues facing the energy sector when he was the previous Minister. He did not mention any of the detailed provisions in this bill. I have in the same way talked about the generic issues. I simply ask that the same rules apply— 
The ASSISTANT SPEAKER (Hon Marian Hobbs) 
: Sit down please. I listened and I heard the Minister very clearly describe how alternative energy supplies could be used at the end of the line when we could not take electricity down the line to them. I am sorry but that is what I heard and that is what I was waiting for from you. We will now continue please. [ 
Interruption 
] Would you both sit down. 
Gerry Brownlee 
: I raise a point of order Madam Speaker. 
The ASSISTANT SPEAKER (Hon Marian Hobbs) 
: Is this a new point of order on a new topic? I have ruled. 
Gerry Brownlee 
: Yes. 
The ASSISTANT SPEAKER (Hon Marian Hobbs) 
: Are you sure you are not going to trifle with the Chair? 
Gerry Brownlee 
: I do not believe I am trifling with the Chair. I do believe that the Chair is trifling with the right of members to take points of order. 
The ASSISTANT SPEAKER (Hon Marian Hobbs) 
: Point of order Gerry Brownlee. 
Gerry Brownlee 
: I raise a point of order Madam Speaker. Could you explain to us what you understand by section 62A “How certain enactments apply to persons subject to obligation in section 62(3)” if we cannot mention other Government policy where it refers to enactments that apply? The solar water heating provisions apply. 
The ASSISTANT SPEAKER (Hon Marian Hobbs) 
: Sit down please. I did that once and I will do it again and I do not expect another trifling with my ruling. My ruling is that it was perfectly all right to talk about alternative energy in the context of the continuance of supply. Instead we have heard a discussion on alternative energy outside the notion of continuing supply to the end of the line. That is where the difference is. Please would you continue Dr Smith. 
Gerry Brownlee 
: I raise a point of order Madam Speaker. 
The ASSISTANT SPEAKER (Hon Marian Hobbs) 
: I am sorry Mr Brownlee. I really think that unless you are going to take a new point of order on a new topic— 
Gerry Brownlee 
: Well Madam Speaker I still have not had the Chair explain to us how we talk about certain enactments without referring to those certain enactments. The Government’s solar heating policy— 
The ASSISTANT SPEAKER (Hon Marian Hobbs) 
: Sorry the member will take his seat please. I have said that the bill is in relation to the continuance of supply. When the discussion is not in relation to the continuance of supply I see it as being outside the bill. Would the member continue please. 
Hon Dr NICK SMITH 
: In talking about the future of supply for those people living at the end of the line alternative energies will be important.  
I will hold this Government to account because for every year this Government has been in office we have seen a decline in the proportion of renewable energy. When this Government came to office 73 percent of our electricity came from renewable sources and that figure has dropped in each and every single year since. For all the rhetoric we have had about carbon neutrality and about climate change and those issues the reality is that this Government’s energy policies have failed. They have failed in the area of getting renewables they have failed in the area of solar and the Government has not achieved its objectives in terms of energy policy.