Smith Nick: Questions for Oral Answer — Questions to Ministers 
Smith Nick: Questions for Oral Answer — Questions to Ministers 
[Volume:631;Page:3539] 
4.  
Hon Dr NICK SMITH (National—Nelson) 
 to the  
Minister of Energy 
: What Government policies if any have contributed to the electricity security of supply problems that saw Monday’s blackout in Auckland and led Keith Turner in February 2005 to note that New Zealand’s electricity grid is so overworked that some lines cannot be taken out of action for servicing and state that: “That is unheard of in the Western developed world”? 
Hon TREVOR MALLARD (Acting Minister of Energy) 
: 
 The previous Government policy of industry self-regulation led to a significant under-investment in the national grid. That is why we established the Electricity Commission and I am advised that investment in the grid is now 500 percent—that is six times—higher than it was when we became Government. Having said that I say that the power cuts that occurred on Monday are not good enough and we will take appropriate action. 
Hon Dr Nick Smith 
: Does the Minister agree with the statement made by Judith Tizard on radio this morning that Government members did know how vulnerable the electricity system in Auckland was because they had seen a whole series of reports; and if they did know how vulnerable it was why for goodness’ sake did they not do something? 
Hon TREVOR MALLARD 
: The Government has done a lot in this area—for example through Government systems the approval last year of an additional $83 million for investment in transmission in Auckland. Twelve separate projects were put up by Transpower and 12 projects were approved. 
Shane Jones 
: Can the Minister provide us with some information on the background of the Otahuhu substation and security supply considerations? 
Hon TREVOR MALLARD 
: Yes I am happy to. The substation was opened in 1927. A 110 kilovolt line was added in 1952. It became the main power supply for Auckland in 1954. The 220 kilovolt line was added in 1966. The earth wire was built in 1966. So the systemic problem at that substation has been there for some time. As far as electricity grid standards are concerned under the policy introduced while Nick Smith was a Cabinet Minister security standards were shifted from central control to that of consumers. This meant that the ultimate liability for breakdowns under a National policy was with consumers. This Government shifted it back. We have boosted the money but this Government still says that what happened on Monday is not good enough and we will get it sorted. 
Hon Dr Nick Smith 
: Does the Minister agree with the statement by his predecessor Mr Pete Hodgson when he launched the Government’s Energy Efficiency and Conservation Strategy that it was far better to spend money on campaigns to reduce demand than to spend it on lines or power stations noting that the most recent review of the strategy shows that improvements have been less than in the time when we did not have a strategy and when we did not spend $100 million; if so why would he stand by such a ridiculous statement today? 
Hon TREVOR MALLARD 
: I think we have been making considerable progress—in policy development in that area and more important in grid investment. And we are doing it because we do not—as Nick Smith did when he was the Minister of Conservation— 
Hon Dr Nick Smith 
: I raise a point of order Madam Speaker. I know the member is very keen to try to talk about things 7 years ago. I actually asked a very specific question as to whether he stood by Pete Hodgson’s statement that it was better to spend $100 million on an energy efficiency campaign or to build lines and power stations. The Minister has made absolutely no attempt to say whether the Government stands by that statement. 
Madam SPEAKER 
: I thank the member. We will hear the Minister finish his answer and I am sure he will address that. 
Hon TREVOR MALLARD 
: I will start again if the member prefers me to repeat it. We need to do both and I think we are making considerable progress in both. We are making much more progress in transmission because we are taking central responsibility rather than putting it on to consumers—the mad approach taken by Nick Smith when he was a Cabinet Minister. 
Hon Dr Nick Smith 
: Was the Minister in stating on National Radio this morning that the answer was to get more engineers in charge—and noting that he is a former teacher and that Mr Parker is a former lawyer—indicating his support for a change of Government so that I and my associate Phil Heatley who are both engineers might be able to be put in charge? 
Hon TREVOR MALLARD 
: Literacy is important balance is important and I want engineers doing engineers’ work—not bureaucrats as Don Brash wants.