12. Question No. 12—Energy and ResourcesJONATHAN YOUNG (National—New Plymouth) to the Minister of Energy and ResourcesQuestion No. 12—Energy and Resources12. JONATHAN YOUNG (National—New Plymouth) to the Minister of Energy and Resources: Does she stand by all her Government's policies statements and actions in relation to the energy and resources portfolio?Hon DAVID PARKER (Acting Minister of Energy and Resources): On behalf of the Minister of Energy and Resources yes.Jonathan Young: Is the Minister concerned by OMV's comments to the Environment Committee yesterday which said the country has just seven years' firm supply with natural gas production forecast to start falling away from 2021 onwards and that we are heading towards a gas supply gap in New Zealand?Hon DAVID PARKER: Long-term prices for electricity are set by the cost of new generation capacity. Wind power is already cheaper than gas which is why Genesis has today announced a new 100 megawatt wind farm in Taranaki which I'm surprised the member is not celebrating.Jonathan Young: So is the Minister still concerned following her reported comments to interest.co.nz that she can't be sure there will be enough affordable clean energy despite today's announcement available to fill the gap when New Zealand's natural gas reserves run out? Hon DAVID PARKER: The first point I would make is an obvious point in energy markets as well as political parties which is that you can't start a transition without starting a transition. The second point is New Zealand can't reduce its emissions by using more fossil fuels; we can only do so by using more renewables. The announcement today by Genesis shows that we're heading in the right direction. Jonathan Young: Is the Minister concerned by OMV's comments that the country still needs a new immediate discovery to maintain security of supply over the next decade but the new offshore exploration ban is discouraging potential investment partners that OMV and others need? Hon DAVID PARKER: I'm confident that New Zealand has the security of supply settings right. I've heard scaremongering from prior National Governments about how impossible it was to increase renewables. We've proven that wrong. Hon Dr Nick Smith: We did. Hon DAVID PARKER: Actually you opposed it at the time Dr Smith through your then energy spokesperson. I would also take some comfort if I was the member and was so interested in the use of gas rather than renewables that Todd Energy has recently committed to a substantial investment in a new gas peaking plant which of course we will need in the transition to more renewables. Jonathan Young: What plan does the Minister have to ensure New Zealanders have access to affordable electricity when current hydro storage is at its lowest point at this time of the year since 2010 with September wholesale prices up 58 percent on the same month as last year and with longer-term natural gas backup constrained and less likely to be available? Hon DAVID PARKER: I have great confidence because I understand that the core principle that lies at the heart of the New Zealand electricity market is that long-term prices—[Interruption] SPEAKER: Order! Order! Could I ask the Deputy Prime Minister and Chris Bishop to let the Minister answer the question so that I can hear him rather than having their own debate. Could the Minister start again thank you. Hon DAVID PARKER: Thank you Mr Speaker. I have great confidence that long-term prices are under control because I understand that the most basic principle that lies at the heart of New Zealand's electricity system is that long-term prices for electricity are set by the cost of new generation capacity and we know that on this very day wind power is already cheaper than gas which is why Genesis have today announced that they're investing in a new 100 megawatt wind farm in Taranaki not in more gas. That's because wind is already cheaper than new gas. Rt Hon Winston Peters: Talking about the rise in power costs is it not a fact that Contact Energy was sold on 1 October 1998 when I wasn't in Cabinet? SPEAKER: Order! Order! It may be a statement of fact but this Minister has no responsibility for it.