11. GERRY BROWNLEE (National—Ilam) Link to this
to the Minister of Commerce
What does the Government hope to achieve from its inquiry into petrol prices?
Hon LIANNE DALZIEL (Minister of Commerce) Link to this
I agree with the person who said: “It would be helpful for people to see how the petrol industry’s pricing structure worked. Everybody notices the price rises very, very quickly, but any price reduction is a great deal slower.” The member, of course, will recognise those words, as they are his own.
Has the Minister seen a copy of a letter sent by the Australian federal Minister for Resources and Energy, Martin Ferguson, to the consumer affairs Minister, the Treasurer, the finance Minister, and the Prime Minister, Kevin Rudd, saying that FuelWatch in Australia would be “an anti-competitive waste of money”; and can she explain how the situation might be any different here in New Zealand?
Why is the Minister considering a FuelWatch scheme for New Zealand, when the Australian Department of the Prime Minister and Cabinet, and the departments of finance, resources and energy, and industry have come out against FuelWatch; and does she not think it might be a better idea to consider whether the Government should go ahead with its planned 2c per litre accident compensation levy increase in July, its 5c per litre increase for biofuels in October, and its up to 10c per litre increase for regional petrol tax next February?
Hon LIANNE DALZIEL Link to this
Despite the member’s assertion, I have not decided that New Zealand will adopt the FuelWatch scheme. I have said that we will look at the report of the Australian Competition and Consumer Commission, which includes a recommendation for a FuelWatch scheme. It is very interesting to note who has opposed the introduction of a FuelWatch scheme, because it empowers consumers as opposed to petrol companies.
If the Minister has now decided that her inquiry is simply a review, and that a FuelWatch scheme may not be such a good thing for New Zealand, has she also decided to back down from her suggestion that New Zealand have a motor fuels commissioner; if not, does she expect that that motor fuels commissioner will be as successful as the electricity commissioner, who has presided over a 50 percent price rise for domestic consumers since his office was created?
Hon LIANNE DALZIEL Link to this
I have not recommended any of the things that the member has asserted. I have not recommended that there be an inquiry; I have stated that there should be a review of the Australian Competition and Consumer Commission inquiry. I have not recommended that we have FuelWatch; I have recommended that we look at all of the recommendations that are contained within the commission’s report. I have made it perfectly plain that I think the jury is out on whether we should have a fuel commissioner.
H V Ross Robertson Link to this
Has the Minister seen any reports that identify what is pushing up the international price of crude oil; and how is it impacting on the price at the pump in New Zealand?
Hon LIANNE DALZIEL Link to this
Yes. The advice is that intense trading in oil futures contracts has been driving oil prices higher by the week, with no end in sight. I noticed that the Leader of the Opposition recently asked Labour to say why petrol prices were going through the roof, but I am sure that he, as a former money market trader who speculated in currency, would be much better placed to answer that question.
I seek leave to table the various press releases and other statements from the Minister that, according to her answers today, were just a load of spin—
Madam SPEAKER