Auchinvole Chris: Electricity Industry Bill — Second Reading 
Auchinvole Chris: Electricity Industry Bill — Second Reading 
[Volume:665;Page:12492] 
CHRIS AUCHINVOLE (National—West Coast - Tasman) 
: 
 It is my pleasure to speak on the Electricity Industry Bill. As my respected colleague and energy mentor the Hon Gerry Brownlee so eloquently and succinctly put it during the first reading of this bill its purpose is to improve competition in the electricity industry to constrain price increases to improve the security of supply and the management of dry years and to improve governance arrangements in the sector. 
This bill addresses some of the major failings of the previous Government. It is significant that I can look across the House and see the Hon David Parker who provided covering defensive fire against the Nats’ attacks when we were on the Opposition side of the House. He did so reasonably convincingly I guess in retrospect but he must have known about the tragedy the travesty of what he was doing. The previous Government let price increases get totally out of control and it put the security of supply at risk. The potential consequences for our poorest most vulnerable citizens were devastating. Nevertheless Labour allowed that to happen. Thankfully National has been able to step in to save the day by implementing this bill to address our previously poorly governed and poorly regulated electricity industry. 
This bill enables the most effective concept that we call increased competition to be implemented. That will lead to constrained price increases. This bill will ensure that the market operates in the most efficient and competitive way possible. That is what this bill will achieve. It also abolishes the Electricity Commission. This is necessary because the Electricity Commission is a perfect example of an unnecessary convoluted bureaucracy. I do not mean to be critical of the best efforts of the people who were involved in it—they did try to do their best—but it had too many objectives and it had too many functions. It tried to be all things at all times and did not operate effectively. 
When I was glancing through some of the first reading debate speeches I was not surprised to see that Chris Hipkins had accused National of having blind faith in the market. That is typical of a Labour Party member—heavy on ideology short on economic knowledge and industry experience and perhaps short on personal commercial experience. Perhaps he or one of his colleagues would like to explain why electricity prices went up— 
Hon Members 
: 72 percent. 
CHRIS AUCHINVOLE 
: —by 72 percent over 9 years under Labour against an inflation rate at the same time of 28 percent. Under this National-led Government electricity prices thus far have gone up by only 2.9 percent—2.9 percent—over the year from May 2009-10. If I throw in the facts that Genesis Energy is now offering very competitive rates in parts of the South Island where it has previously never competed before and that this bill requires consumers to be compensated by power companies in the event that there is ever another national electricity savings campaign people will see that National is doing all that it can to help those who can least afford the necessities of life: those on fixed incomes those on pensions and those on superannuation. 
What is most pleasing about these reforms is how consumer friendly they are. I challenge the Labour members to look at what the bill delivers and then on reflection to support this sensible and needed legislation rather than turning up their noses at anything and everything that might vaguely smell like sensible economics. 
The reforms also replace the unfocused Electricity Commission with an Electricity Authority as an independent Crown entity. The objective of the Electricity Authority will be to promote competition reliable supply and efficient operation of the electricity market for the long-term benefit of consumers. This is a much narrower set of objectives than the Electricity Commission’s which included in addition to the above objectives fairness environmental sustainability promotion of energy efficiency plus seven more detailed outcomes. 
In summary I am very pleased and proud to support this bill. After careful consideration of the recommendations of the ministerial review this Government has produced an effective enduring bill. This legislation will constrain price increases improve the security of supply and the management of dry years and improve the governance arrangements in the sector—just as it has set out to do. Thank you.