Copeland Gordon: Debate on Crown Entities Public Organisations and  State Enterprises — In Committee 
Copeland Gordon: Debate on Crown Entities Public Organisations and  State Enterprises — In Committee 
[Volume:638;Page:8816] 
GORDON COPELAND (United Future) 
: 
 Meridian Energy is a great New Zealand company of world-class expertise in the electricity generation and retailing sector. It has an outstanding understanding of sustainability and I think it gives a lead not only to State-owned enterprises but also to private sector companies in the practical application of sustainability principles. It also has a world-class capability for renewable electricity generation especially hydro and wind.  
From the view of the Government and the taxpayers however the news gets even better. During the year under review the year ended 30 June 2006 Meridian paid a dividend to the Crown of no less than $879.4 million. I would imagine that that is an all-time record for any New Zealand company in history. If that was not enough it paid a further $300 million in October 2006. That is a total of $1179.4 million in a period of just 16 months. The people of Auckland should be very grateful for that because as we know about $650 million of that amount was put aside by the Government for roading in Auckland. So those are very considerable achievements by Meridian which all of us should celebrate.  
But it goes further. Meridian is to my knowledge the first electricity generator to become officially certified as carbon neutral. That has been done through a very robust process. So one of the largest companies in the country is now officially carbon neutral—a goal that the Prime Minister has for New Zealand and a goal that is achievable in my view if we get it right in about 25 to 30 years from now. Meridian is already there.  
Also of great interest particularly to the elderly—and I know that this is the No. 1 priority now for Grey Power—is that Meridian as a company limited its price increases in the year under review to about the rate of inflation or about 3.5 percent. I would like it to be less. The elderly would like it to be less. But nevertheless Meridian again stands out from the crowd in the way that it has been able to control its prices over that period.  
However we should not take the continuation of the success of Meridian for granted. Some serious issues confront the company at this stage in relation to the wind generation of electricity. Wind generation of electricity is great for sustainability because it is perpetually renewable it is totally free and New Zealand happens to be one of the windiest spots on the planet. It is also very very positive for climate change policy—something that we all want. However the Resource Management Act is providing some problems for Meridian in getting on with wind farm development.  
Meridian actually received consent for Project West Wind the wind farm in Makara in December 2005. We are now into May 2007 and that project is still stuck in the Environment Court. I would estimate that that delay has now cost Meridian about $100 million. At the time the Commerce Committee reported back to the House it was $80 million but since then the New Zealand dollar has gone up to an all-time record high which has increased the cost for the wind generator and the windmills themselves enormously. The economics of this very very worthwhile project has now jeopardised its actually going ahead.  
When I say “worthwhile” I would ask whether members can imagine anything more perfect than using a free perpetually renewable source of energy right on the doorstep of New Zealand’s capital city that will produce in and of itself enough electricity for all the homes of Wellington the Hutt Valley and Porirua City. It is right on our doorstep. Transmission losses are zero. It is possibly the most phenomenally well-placed energy source we could come up with and it has now been delayed for too long.  
I know that Meridian has expressed concern to the Government that the Resource Management Act 1991 does not contain clear national policy statements for specific outcomes and that therefore it needs to be looked at with a view to making sure these large wind projects are able to go ahead. I recently asked David Parker the Minister of Energy and Minister responsible for Climate Change Issues whether the delay would jeopardise this project. His answer was in the negative but I have my doubts. 
Report noted.