Hereora Dave: Questions for Oral Answer — Questions to Ministers 
Hereora Dave: Questions for Oral Answer — Questions to Ministers 
[Volume:647;Page:16596] 
8.  
DAVE HEREORA (Labour) 
 to the  
Minister of Commerce 
: What initiatives has the Government announced to investigate competition in petrol pricing? 
Hon LIANNE DALZIEL (Minister of Commerce) 
: 
 The Ministry of Economic Development has engaged independent consultants to review and analyse petrol pricing in New Zealand in line with the Australian Competition and Consumer Commission report. As I have said the commission found that prices are largely driven off crude oil prices the US exchange rate and the international market for the refining of petrol. There will be no difference from that here in New Zealand. However the commission did consider that consumers were entitled to know more about how petrol prices are set and believed there were some marginal gains to be made by improving the competitive dynamic of the market. That is what the New Zealand review will assess in the New Zealand context. 
Dave Hereora 
: What does the Government hope to achieve from its inquiry into petrol prices? 
Hon LIANNE DALZIEL 
: Of course we are not conducting an inquiry as the National Party spokesperson has suggested. However I believe it is important that there is total transparency around petrol prices and that any myths around petrol price-setting are identified and dispelled as occurred with the Australian Competition and Consumer Commission report. It is also in the interests of New Zealand consumers that we consider whether there is potential here as there is in Australia to improve the competitive dynamic of the market because even though the difference may be marginal it is worth it to consumers who are feeling the pain at the pump. 
Gerry Brownlee 
: Can the Minister explain how establishing a FuelWatch bureaucracy will lower motor fuel prices for consumers; if she can can she tell us whether any price decrease she might anticipate will compensate for the additions to the petrol price that are coming from regional fuel tax the biofuels obligation and emissions trading scheme costs? 
Hon LIANNE DALZIEL 
: The member is heading into the pathway of making a determination as to the outcome of the review of the Australian Competition and Consumer Commission report. That report found that the FuelWatch system that has been operating in Western Australia should be rolled out across the rest of Australia in areas with large populations—not in rural areas but in the cities. The Australians have discovered that that would transfer the power of information to the consumer and away from the petrol companies. The petrol companies are able to monitor their competitors’ prices on an instantaneous basis through informed sources. FuelWatch gets the information to the consumers rather than to the petrol companies so consumers can make an informed choice as to whether they buy before 6 a.m. or after 6 a.m. 
Gerry Brownlee 
: I raise a point of order Madam Speaker. That was a very interesting elucidation of the Minister’s thinking but the question asked whether she thinks a FuelWatch bureaucracy will lead to lower prices for consumers. 
Madam SPEAKER 
: Does the Minister wish to add anything to her answer? 
Hon LIANNE DALZIEL 
: I will say that the commission’s report which has recommended rolling out FuelWatch to all of Australia not just Western Australia where it operates has determined that indeed there is benefit to consumers in having the information that is currently now available only to the petrol companies. The differences between New Zealand and Australia are that Australia has seven oil refineries and we have one and that Australia has a significantly larger population than we do. I think it is sensible to see whether the model would work in New Zealand and that is what the review will do. 
Gerry Brownlee 
: I raise a point of order Madam Speaker. That was virtually the same answer with a little more added to it. The question asked whether a FuelWatch bureaucracy will lower prices. 
Madam SPEAKER 
: I think if the member had listened carefully he would have found the Minister did actually address the question. 
Peter Brown 
: Will the Minister answer specifically could this inquiry lead to the establishment of a FuelWatch ombudsman or some such person as in Australia; if so who will pay for it—will it be similar to the Electricity Commission and fall as a charge against users? 
Hon LIANNE DALZIEL 
: It was a recommendation of the Australian Competition and Consumer Commission to appoint a fuel commissioner to the commission and that has been in place for a relatively short period of time. I would expect the independent contractors to look at how that has panned out in Australia and to make appropriate recommendations. I think it is too early to say how it would be funded if the decision was made to go down that track but I think the jury is still out on that recommendation. 
Jeanette Fitzsimons 
: When will the Government address the underlying reality that petrol prices are rising because demand for oil is exceeding the available supply and when will it pull New Zealanders together to develop a long-overdue plan to reduce New Zealand’s dependence on oil? 
Hon LIANNE DALZIEL 
: This Government has taken many initiatives to ensure that we are addressing the reality of peak oil when we get to that and also to ensure that New Zealanders take appropriate steps to reduce their dependence on fossil fuels.